Contract farming boosts cotton farming

Adoption of contract farming (CF) is proving to be the best solution to farmers’ constraints in accessing quality cotton inputs.Contract farming can be credited to improving cotton farming looking at of increased cotton farming area, seed uptake, levels of distribution of pesticide and service provision to farmers.

This development shows a clear sign that the cotton sector is on the rebound and will boost the contribution to the agricultural sector reflecting on the economic growth and development of Tanzania.

According to a preliminary data collected at the end of February 2017 by the Tanzania Cotton Board (TCB) there has been an increase of over 100 per cent seed cotton uptake in CF areas compared to last year and this has led to significantly increased areas of cotton planted by farmers in these regions.  

This is a direct result of the fact that under CF seeds have been provided by ginners on credit, with the promise of pesticides also being available on credit.

Figures indicate a sharp increase in cotton farming where planted areas in Mwanza increased by 66 percent from 69,886 acres in 2015/16 season to 116,110 acres in 2016/17 season.  

Mara has recorded a similar increase of 77 percent planted areas from 43,216 to 76,390 acres.  While the early season drought has impacted on the actual areas now germinated and established, it is clear that if farmers are assured of support they want to grow cotton.

In contrast, non-contract farming areas have continued to see a decline in areas planted - in some cases by as much as over 60 percent.

Commenting on the report, the Tanzania Cotton Board Director General, Marco Mtunga said “The provision of credit under contract farming has stimulated a high demand for pesticides by farmers. This means contract farming continues to play a pivotal role in building better and sustainable farm inputs distribution infrastructure.”

He pointed out that through contract farming, cotton buyers agree to provide inputs, finance and advice on credit to primary producers of cotton in return for having exclusive rights to purchase the crop at harvest time.

While pesticide distribution is still ongoing there is early evidence that CF areas have already exceeded the levels of pesticide distribution that were recorded for the whole of the 2015/16 season for the Mara and Mwanza regions by almost up to double.  

This is largely because ginners are procuring their own pesticides independently and not relying on the very limited stocks available from the Cotton Development Trust Fund (CDTF). In non-contract farming areas the reverse is the case and farmers are struggling to obtain the pesticide that they require.

The Mwanza Regional Commissioner, Hon. John Mongella commended the adoption of contract farming and said “The government will continue to offer its full support because the system has proven to be beneficial to farmers and the cotton sector development in general.” He added: "Contract farming offers invaluable mutual benefits between farmers and cotton buyers. The most important thing is to uphold this partnership through a long-term commitment from both parties. They both need to acknowledge that honoring contractual arrangements is likely to be to their long-term benefit."

This season so far  there has little in way of complaint on the quality of seed or pesticides distributed, a remarkable difference from last year. Ginners who participated in in CF have been willing to provide funding to districts to facilitate the mobilisation of district extension services.

These are learning points with room for improvement in the cotton sector and the implementation of CF in the coming seasons. The current status in cotton farming and effect of CF can be taken as an indication of things to come during cotton harvesting this season - a marked increase in the cotton to be harvested

This cotton growing season 2016/2017 District Task Forces (DTFs) in two regions - Mwanza region (in Misungwi, Magu, Sengerema, Buchosa and Kwimba districts) and Mara Region (in Butiama, Musoma, Serengeti and Butiama districts) have supported contract farming in an effort to reverse the decline in cotton production.

The DTFs have been actively involved in contracting processes which allocate geographical-based concessions to individual ginners in return for a legal commitment to support to farmers in those areas through provision of seed and pesticide on credit.  DTFs are also following up to ensure all parties uphold their end of the agreement.