Harare - Zimbabwe's once-thriving cotton industry faces collapse, it was reported Thursday. So serious is the situation that the managing director of a cotton seed company has warned there could be no cotton next year, the official Herald newspaper reported.
The reason for the crisis is the prevalence of side-marketing, which sees cotton growers selling their crops to unregistered dealers instead of those they were contracted to produce for, the paper said.
"Around 19,000 tonnes of cotton planted this year was earmarked for seed to ensure next years crop. But much is being sold to illegal buyers," Rob Jarvis, managing director of Quton Seed company, said.
"Despite the fact that we have an industry body backed by government to prevent cotton being sold to buyers who have not financed its production, it is still happening," Jarvis was quoted as saying.
"Now next season's crop is under threat since this year's seed multiplication crop, specially grown to become next year's seed, is part of this illicit trade. If this is not stopped immediately there will be no cotton crop next year," he added.
Side-marketing of essential crops like cotton and maize is common in Zimbabwe, as growers battle with soaring inflation now at 3,700 per cent and predicted to top 6,000 percent by next year - to make good returns on their crops.
Pre-fixed prices quickly become worthless as the Zimbabwe dollar loses value by the day. Recent estimates say the local unit may be losing around 3 per cent per day.
Back in 2005, cotton farmers warned the industry was headed for inevitable collapse because of the unviable prices being paid to producers.
Production in 2004 was 331 million kilograms, which was worth more than 117 million US dollars. Figures for more recent production were not immediately available.
Cotton is an important crop to peasant farmers in Zimbabwe, as it is suited to the kind of arid farming areas that make up a large portion of the country.
