Zimbabwe Growers to Rely on Seed Cotton for Income
February 16, 2012 An increase in global cotton production might be driving prices down, but growers in Zimbabwe can still profit from selling seed cotton, which offers advantages that competing crops such as maize can’t match.
The law of supply and demand is having the expected impact worldwide, with last year’s exceptionally high prices causing a significant spike in this year’s global production. The 2011/12 season is expected to total about 27 million tonnes, the highest output since 2004/5, thus increasing supply and driving prices back down.
Much of the increase is expected to come from the world’s cotton production heavyweights: China’s production is expected to jump 13% to 7.2 million tonnes, while India’s crop is expected to total almost 6 million tonnes, an increase of 9%.
Despite the sagging global prices, growers in Zimbabwe can still take advantage of spot cash payments, according to an article on www.allafrica.com. With cotton, unlike crops such as maize, farmers don’t have to deliver the crop before they receive payment. They can also benefit when they sell their cotton to merchants at an agreed-upon price, because even if the lint price falls to a level that’s lower than what the shipper paid the farmer, the risk remains with the buyer. By the same token, if the lint price goes up, farmers can receive back payments for the difference.
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