Cottco anticipates 26% drop in deliveries
RYAN CHIGOCHE
Zimbabwe’s largest cotton buyer, the Cottco Company of Zimbabwe (Cottco), is anticipating a 26% drop in crop intake this season to 85,600 tonnes from 116,000 tonnes achieved last year, owing to poor rainfall patterns.
In its trading update published this week, Cottco acting company secretary Jacqueline Dube, said as of last Wednesday, the crop intake stood at 34,497 tonnes.
“As at 13 July 2022, intake stood at 34,497 tonnes. The late onset of the rains and erratic rainfall patterns have led to a reduction in the expected intake to 85,600 tonnes for the season compared to 116,000 tonnes in 2021,” Dube said.
She added that payment modalities were already in place for the current season to ensure that farmers get their money timeously.
Ginning, Dube said, is also expected to commence this week with lint output being prioritised to support local spinners.
In the last quarter to March 31, 2022, Cottco sold 50,187 tonnes of lint with 77% of it being exported . The balance of 11,663 tonnes (23%) was sold locally.
About 937 tonnes were value added in the reported period owing to the company’s local toll-spinning arrangement while ginned seed totalling 62,160. tonnes was sold in the same period mainly to local oil expressors and stock feed suppliers.
In the outlook, Dube said the company was expecting an increase in farmers which will result in increased intake the following season
“Cottco anticipates an increase in the number of farmers for the 2022 planting season as it continues to roll out the Pfumvudza/Intwasa Programme, with the advantage thatcotton is a drought tolerant crop,” she said.
Dube said capital raising for value addition projects and acquisition of additional hybrid seed was currently underway.
Cottco also received US$1.3m from insurers as payout for the insurance claim for the October 2021 fire incident which occurred at a port in Checheche, Chipinge South port.
Preliminary estimates placed the lost worth of the cotton lint, which belonged to a group of enterprises operating under Cottco, at US$2.5m.
The companies whose cotton lint was burnt include Cottco, Southern Cotton, Consolidated Cotton of Zimbabwe and Shawasha Cotton.
Up to now the cause of the mysterious fire is yet to be established.
Meanwhile, the government is in the process of increasing its shareholding in the company.
