Cottco disburses another US$1m for 2023 deliveries

THE Cotton Company of Zimbabwe (Cottco) has paid an additional US$1 million to farmers as part of the delayed payments for the 2023 seed cotton intake, taking the cumulative total payments to US$20,5 million.

In a recent X (formerly Twitter) post, Cottco revealed that they had paid an additional US$1 million towards farmer payments in the week ending March 22, covering almost 90 percent of the payments and leaving a balance of US$3,2 million. The cumulative total farmer payments now stand at US$20,5 million.

In its trading update from September 1 last year to January 31 this year, Cottco company secretary Ms. Eunice Mupanduki said liquidity in the local economy remained constrained, with Cottco unable to drawdown to the full extent of available facilities, despite having adequate security.

The trading update revealed that the company had settled US$19,6 million (83 percent) and $7,2 billion (18 percent) of the farmer payments dues in the respective currencies with outstanding dues expected to be cleared from product receipts by March 31.

The trading update revealed that there was a 48 percent increase in seed cotton intake from 46,748 tonnes in 2022 to 69,419 in 2023.

Cottco corporate communications manager, Mrs Constance Makoni-Thodhlana said: “Ginning, which was supposed to end last year was delayed due to erratic power supplies in the last quarter of 2023 and to date 97 percent of seed cotton has been ginned.”

She observed that efforts were being made to clear the outstanding payments for the 2023 seed cotton intake soon.

Commenting on this year’s crop, Mrs Makoni-Thodhlana said the early planted crop was at full boll formation and was expected to produce better yields while the late crop was affected by the long dry spell — a situation that was likely to compromise yields.

Meanwhile, Cotton Council of Zimbabwe (CCOZ) chief executive officer Engineer Chris Murove said his members were grateful for the payments but were expecting the balance to be paid soon.

“We hope the balance of US$3,2 million will be cleared soon so that contracted farmers can bring all their cotton to Cottco without any reservations, since the 2024 buying season is now imminent.

Cotton Producers and Marketers Association chairman, Mr Stewart Mubonderi said farmers welcomed the partial payment.

“We welcome the part payment of US$1 million and are hopeful that the US$3,2 million, as well as the local currency outstanding balance will be paid by end of this month as promised.

“Farmers are also anticipating grade-based price differentials to be paid,” he said.

Mrs Makoni-Thodhlana said local currency payments were being settled depending on the liquidity situation.