Zimbabwe Cotton Stakeholders Form Price Negotiating Team

Zimbabwe cotton farmers earned from this year's yield according to a recent article in the state newspaper The Herald. The land redistribution program in this Southern African state has provided farms to people dispossessed by colonialism., a photo by Pan-African News Wire File Photos on Flickr.

Cotton stakeholders form price negotiating team

Friday, 12 April 2013 00:00

Barley tobacco farmers held on to their crop at Chidziva Tobacco Processors in Harare on Wednesday in protest against low prices

Agriculture Reporter

STAKEHOLDERS in the cotton industry have formed a team to negotiate on behalf of farmers and ginners a common price for the 2013 marketing season.

This follows a recent meeting between ginners and farmers’ unions’ presidents.

Zimbabwe Commercial Farmers Union vice president Mr Wonder Chabikwa said the team comprises of representatives from the Zimbabwe Farmers Union, Zimbabwe National Farmers Union, Zimbabwe Commercial Farmers Union, and ginners.

“We have assigned the team to consult, negotiate and come up with a common position on the price which they will forward to the unions’ presidents for approval,” he said.

Mr Chabikwa said the approved prices would then be forwaded to the Agricultural Marketing Authority for regulatory purposes.

Zimbabwe Farmers Union second vice president, Mr Berean Mukwende said cotton ginners also had consultative meetings with farmers and have the farmers’ position.
He said the representatives would negotiate on the price considering the cost of production, inputs costs and international price while ginners would also forward their cost of production. Cotton Ginners Association director general, Mr Godfrey Buka confirmed that the two parties had agreed to let representatives negotiate on behalf of the association and unions. The cotton industry had been dogged by the issue of pricing as farmers called for high prices while ginners refused to increase the price.

To determine producer prices, the industry uses international lint prices as a benchmark.
In most producer countries, the price is normally estimated because the actual price will be known at the time when the lint is sold.

About 300 000 tonnes of cotton are expected this season due to the late rains and flooding in some areas.