Embracing Technology Is the Key for Smallholders

Good leadership is not only critical in management of socio-political affairs, it has a vital role in all economic activities – including the cotton business from the supply side, processing, and marketing to the final consumer. Since 2008, the global cotton trade has witnessed unpredictable turbulence. It requires a good captain to navigate the vessel through these waters. The ever-changing dynamics in the cotton trade calls for informed leadership to guide policy and decision-making by both the public and private sectors.

Innovation and technology transfer will continue to remain the pillars of transformation in any sector. For a smallholder producer to stay in business in this volatile environment, the output per unit of area must attain acceptable levels.

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Embracing new technologies is the surest way to meet the challenge. Adoption of conservation agriculture to facilitate early planting will go a long way to overcoming the changing climate. Scaling up mechanization using simple animal-drawn implements also can play a major role in rejuvenating cotton production for smallholder producers, thus increasing their competitiveness. Biotechnology is another area that can benefit resource-poor producers. Although profit is the mother of business, patent holders of new technologies are urged to provide leadership by availing the technology to developing countries at affordable prices.

The rules of the market dictate that quality products will always fetch a higher price. Production of undisputable cotton quality is more important than it has ever been before. Producers, ginners, merchants and spinners all stand to gain if quality becomes their top priority. Achieving the best requires vision and leadership. Every player should embrace a workable system to achieve these deliverables.

The ginning community should rise to the occasion by:

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Offering fair prices to producers;

Denouncing usage of packaging materials, such as jute, which contaminate cotton at the ginnery level;

Increasing operational efficiency;

Partnering with the public sector to provide extension services; and most importantly;

Investing in production by providing necessary inputs to resource-poor producers in order to improve quality and productivity.

Contract Farming Is a Win-Win Situation

For a long time, lack of resources has been the undoing of smallholder producers. Contract farming, if well managed, can be a vehicle for ensuring a win-win partnership.

The health of any industry is dependent on the capacity and organizational structure of the existing institutions. Following a three-year pilot test, Tanzania is rolling out contract farming, starting with the 2011/12 farming season.

Results of the pilot program have shown that contracts will improve productivity and the quality of the crop, while organization of producers into groups will increase their bargaining power and improve the level of trust between ginners and producers.

The success of this arrangement will be credited to determined stakeholders through the Tanzania Cotton Association and Tanzania Cotton Growers Association, with help from the central and local government authorities.

Visionary leadership is vital to facilitate reform of the industry by instituting a new system of delivering inputs to producers and provision of extension services. Marketing of seed cotton will be managed by the Farmer Business Groups rather than agents. Self-regulation is the key word in creating an enabling environment for the smooth implementation of contract farming. The role of the regulatory body will be to oversee important emerging issues.

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