Among many other benefits, contract farming (CF) is proving to be the best solution to farmers’ nightmares in accessing quality cotton inputs, Tanzania Cotton Board (TCB) has said.
According to the board, the innovative practice has 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 its contribution to the agricultural sector reflecting on the economic growth and development of Tanzania,” TCB said yesterday.
“This cotton growing season 2016/2017 District Task Forces (DTFs) in two regions - Mwanza (in Misungwi, Magu, Sengerema, Buchosa and Kwimba districts) and Mara (in Butiama, Musoma, Serengeti and Butiama districts) - have supported contract farming in an effort to reverse the decline in cotton production,” it noted in a briefing on the development.
“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,” it added.
Preliminary findings of a study by TCB at the end of February show that there has been an increase of over 100 per cent seed cotton uptake in CF areas compared to last year. The preliminary data also indicate a sharp increase in cotton farming where planted areas in Mwanza increased by 66 per cent from 69,886 acres in 2015/16 season to 116,110 acres in 2016/17 season.
Mara has recorded a similar increase of 77 per cent planted areas from 43,216 to 76,390 acres. In contrast, non-contract farming areas have continued to see a decline in areas planted - in some cases by as much as over 60 per cent.
Commenting on the report, TCB 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.
Mtunga also said that 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.
Explaining, he said this is largely because ginners are procuring their own pesticides independently and not relying on the 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, Mtunga noted in the statement.
The government has vowed to fully support the adoption and practice of the system. Mwanza Regional Commissioner John Mongella said contract farming has proved to be beneficial to farmers and the cotton sector development in general.
Contract farming offers invaluable mutual benefits to farmers and cotton buyers. The most important thing to both parties is to uphold this partnership through long-term commitment from both parties.
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