UNCTAD

Multi-Year Expert Meeting on Commodities

and Development 2013
Recent developments and new challenges in commodity markets, and policy
options for commodity-based inclusive growth and sustainable development

Room XXVI
Palais des Nations
Geneva, Switzerland

EMPOWERING COTTON FARMERS IN ZAMBIAN COTTON

VALUE CHAIN
by

Mr. Joseph NKOLE

COTTON ASSOCIATION OF ZAMBIA
(Farmers Fighting Poverty)

21 MARCH 2013

This material has been reproduced in the language and form as it was provided. The views expressed are those of
the author and do not necessarily reflect the views of UNCTAD.
 COTTON ASSOCIATION OF ZAMBIA
(Farmers Fighting Poverty)

EMPOWERING COTTON FARMERS IN ZAMBIAN COTTON VALUE CHAIN

PRESENTATION TO THE MULTI-YEAR EXPERT MEETING

ON COMMODITIES

21ST MARCH 2013

ROOM XXVI - Palais des Nations, Geneva

Plot 4297 Buyantanshi Road Tel: +260 211 241819

Zamseed Premises, Industrial Area Fax: +260 21241841
P O Box 32281 Email: caz@zamtel.zm
LUSAKA Website: www.caz@cotton.org.zm
 CONTENT OF THE PRESENTATION
Introduction
Cotton Value Chain in Zambia
Efforts to Empower Zambian cotton farmers
Challenges
Way forward
Conclusion
 Introduction
Cotton is one success story of Zambias turn to
a market economy.
Major and growing sector +/- 460,000
smallholder farmers.
Formation of CAZ
Vision, activities
 Introduction
450'000
400'000
350'000
Cotton is one success story of Zambias 300'000
turn to a market economy. 250'000
Major and growing sector +/- 460,000 200'000 No. of farmers
smallholder farmers. 150'000 Production mt
100'000
Formation of CAZ , Vision, activities 50'000
0
Cotton Value Chain in Zambia Production
Average Seed Cotton Price/Kg
Price/kg
Low & Static yields 3500
Farmers lack liquidity & rely on 3000

Ginners 2500
2000
-Input supply
1500 Average Seed
-Market 1000 Cotton Price/Kg
-Extension services 500
Price/kg

-Ginners dictate prices 0

1999/2000
2000/2001
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
2006/2007
2007/2008
2008/2009
2009/2010
2010/2011
2011/12
-Weak negotiation power of
farmers
-Volatility of international cotton
prices.
Agrochemical COTTON VALUE CHAIN IN ZAMBIA
dealers

Cotton/Ginning
Companies

Extension
Service
providers
Fabric Retailers
Lint Yarn Garments
Material

Seed
Seed Cotton Seed Cotton by-product processing/manufacturing
Cotton
Production
Processing
Cooking
Fuzzy Seed oil

Cotton
Cake
Ginning
Companies
Smallholder
Farmers
Ginning We
Weavers
Companies Spinners
Cooking Oil
Textile
Plants
 GINNING
Around 10 Ginning companies
All foreign owned multinational
17 ginneries; 11 saw gins; 6 Roller Gins
Ginning capacity 361, 800mt
GOT 41%
Average Bale weight 180kg
 TEXTILE INDUSTRY
Obsolete equipment
Lack of competitiveness
Only 4 spinning mills
Influx of second Hand clothes
EFFORTS TO EMPOWER ZAMBIAN
COTTON FARMERS
CAZ in collaboration with International Trade
Centre (ITC) South-south Co-operation for
improved production through training events
in:
-China
-India
-Senegal
-Turkey
 CAZ in collaboration with International Trade
Centre (ITC) South-south Co-operation in
market-related activities in textile producing
countries:
-Bangladeshi
-China
-Thailand
-Turkey
-Vietnam
Building on these linkages, CAZ has been able to
change the cotton sector in the following ways:
-Farmer Empowerment
Through the exposure and training of
farmers, CAZ has built a strong contract
negotiating team
-Transparency and partnership along the value
chain
Farmers have engaged in self-financing and
learning from each other and improve the
trust levels.
- Indigenizing and adding value to the cotton
value chain
Farmers have established a farmer owned
ginning facility.

- Building partnership with prefered buyers.

Through the above innovation, farmers with
support of ITC have made strong partnership
with spinners.

- Managing Farm Inputs

- Farmers are using the business links created in Asia to
become independent of ginning companies.
- Managing Farm Input Support Programme Government.
- Creating an institutional infrastructure that
supports farmers
Farmers liaising with cotton related
institutions
Farmers demanding for enhanced research and
development.
- Improving Regional collaboration
Due to international exposure and facilitated
interchange with cotton stakeholders in
Africa, CAZ has been instrumental in the
formation of MOZAZIMA.
CHALLENGES
Lack of Transparency and Price Risk
Management
Lack of Value Addition at farmer level
Cotton contamination and Quality control
Low local textile production
Weak apex farmer organisation
Poor Regulatory Framework
WAYFORWARD
Implement strategies and systems to protect the
sanctity of contracts and enforcement.
Establish common buying and selling points for
inputs and produce.
Capacity building and strengthening of farmers
groups to participate in value addition.
Practical support by Government and financial
investment into the development of the sector.
CONCLUSION
Opportunity to strengthen the position of smallholder
producers in the market.
Opportunity to connect industry to the market and assure
the future of cotton in Zambia.
Knowledge leads to transparency for trust to flourish and
industry to grow.
Farmers have a choice to produce or not produce cotton;
Farmers broke the fundamental power structures.
Regional transparency benefits farmers in MoZaZiMa.
Farmers engaged in value addition to revive textile and
clothing industry.

Thank you
Merci beaucoup pour votre aimable attention