Clothing firms should invest in local raw materials

17 Nov, 2017 - 00:11 0 Views
Clothing firms should invest in local raw materials About 99 percent of the cotton crop in Manicaland was funded through the Presidential Inputs Scheme

The ManicaPost

Prosperity Mzila Business Correspondent
Government is well aware that over the years, as elections draw near, certain companies close shop and cite a cocktail of excuses to justify their lack of production. The Reserve bank of Zimbabwe (RBZ) has been blamed for failing to provide foreign currency for purposes of importing raw materials needed to increase production, yet Government through the central bank has prioritised the provision of foreign currency for the acquisition of raw-materials and in support of value addition. 

Not only has Government put in place policies that support and protect local production, it has also gone further to support the production of raw material through the Presidential Input Scheme and the Agricultural Program. The Liberalisation of mines has also assisted in the production of raw minerals for farmers as well.  It is, therefore, pure hypocrisy for these companies to blame the supposed lack of support from Government for their low production without making their own initiatives to promote local producers of their raw materials.

According to 2009 COMESA Regional Strategy for Cotton-to-Clothing report, the production of cotton in most member countries is characterised by small-holder producers, many of whom lack appropriate farming skills. In most cases, they are also not well organised, an aspect that constrains capacity building for farmers and also their ability to adopt new technology and to produce quality products. Furthermore, due to weak organisation, farmers have limited influence on policy decisions. This is where the local manufacturing industries in the Cotton-to-Clothing industry should take advantage and partner with the local farmers, for best yields.

The timeous provision of seed, adequate provision of insecticide and installation of irrigation systems to the small holder farmers will ensure that the cotton to clothing industry is assured of getting first grade cotton yields that produce the best cotton fabrics.  The companies will in turn get cotton at a cheaper and more affordable price.

The process is not at all different to that of RBZ working with artisanal miners in the acquisition of gold at an affordable price. It has also been proven that the small artisanal miners are actually the biggest suppliers of gold to Fidelity Printers, an RBZ branch that deals with gold processing.

The low cost of cotton production will have ripple effects on ginning and spinning, making it more affordable to produce materials that are of high quality and competitive for export purposes.  It is, therefore, unjustifiable for the clothing firms to sing the blues and cite lack of foreign currency when there is an opportunity to work with local farmers to produce quality materials that can be exported to generate more foreign currency.

The cotton to clothing industry is a huge employment creation industry that thrives even in the most underdeveloped countries of the world. It is also a major source of income for millions, particularly those living in rural areas. Competition in the world of textile is based on price and quality. Cotton-to-Clothing companies should support smallholder cotton farmers who face problems of low yields mainly due to poor agronomic farm practices. This works to the companies’ own advantage as it boosts quality raw-materials for competitive production of materials.

It has been noted that the only factors that contribute to poor quality seed are due to the absence of price assurance mechanisms and the collapse of an effective credit input system. According to an analysis by the COMESA cotton-to-clothing submission, the cotton value chain reveals that key farm practices such as thinning and stamping are usually overlooked by small-holder farmers. There is also limited use of fertilizers and agrichemicals mainly due to their high cost which are beyond the farmers’ reach.

This can easily be sponsored by Cotton companies as well as agro-chemicals and this can be extended to farm labour which dominates the total cost structure associated with cotton farming. Companies should take it upon themselves to increase production and make significant contributions to the economic survival of this country, through exports.

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