Zimbabwe Cotton Farmers To Be Paid Only In USD This Season

Zimbabwe’s Cotton Sector Shifts To USD-Only Payments

Cotton growers in Zimbabwe will be paid exclusively in US dollars this marketing season, with prices ranging from US$0.30 to US$0.41 per kilogramme based on quality. The move comes as farmers push for a cost-plus pricing model, arguing that the current system unfairly benefits ginners.

Farmers demand fair pricing model

The Zimbabwe Farmers Union (ZFU) has criticised the current profit-and-loss pricing model, which they say passes ginners’ inefficiencies onto producers.

“As the farming community, we would have been happier if the price had been pegged above last year’s base price of US$0.32 per kilogramme,” said ZFU secretary general Paul Zakariya speaking to The Herald.

“Considering the producer price of seed cotton this year, we need to look at the model we use to negotiate, as this profit and loss sharing model is not working for the farmer.”

Zakariya urged for a cost-plus pricing approach, where farmers’ production costs are factored in before determining profits.

Also Read: Why Zimbabwe Seized Land From Black Farmers During Land Reform Program Under Mugabe: Presidential Spokesperson Explains

Low profits leave farmers struggling

Many cotton growers say they are barely breaking even. A farmer selling a 200kg bale earns US$60 but spends US$10 on transport alone, leaving little profit after labour and other costs.

“Most of us pay pickers US$1 per 20kg, then spend more on transport. At the end, we’re left with almost nothing,” one farmer said.

Zimbabwe National Farmers Union (ZNFU) president Monica Chinamasa echoed these concerns:

“ZNFU wants production cost to be used in coming up with a good price for the crop.”

Calls for sector revival

Cotton remains a key crop for Zimbabwe, supporting around 2 million people and contributing to foreign currency earnings. However, experts say the sector needs urgent reforms.