The role of contract farming on cotton production and peasantry livelihoods: the case of Jiri communal lands of Gokwe South in Zimbabwe

Abstract

The prevalence of contract farming in the cotton industry of Zimbabwe implies that it has become the dominant marketing system. Even the independently produced cotton is eventually sold to the contracting cotton companies owing to enacted regulations which compel all prospective cotton buyers to finance production through contract farming to be licensed to purchase seed cotton from farmers. However, the prevailing seed cotton marketing system is riddled with challenges characterised by price negotiation impasses that recur every marketing season, prompting Government intervention in a supposedly free market system. While peasant farmers accuse cotton companies of colluding in undertaking unfair pricing practices, the cotton buying companies on the other hand blame it all on the peasant farmers for failure to increase yield levels to expected national and international standards, and also failure to be reliable in loan payments. This study seeks to assess the role of cotton contract farming in the Jiri communal lands of Gokwe, Zimbabwe in addressing peasantry socio-economic livelihoods. Results of this study show that the contract farming system in the area under study has failed to address the welfare of the peasants in the area, and there is need for consorted effort to come up with other alternatives besides relying on cotton production. Alternative options, though few, are available for the peasant farmers to reduce reliance on the cotton cash crop. However, contracted farmers have guaranteed markets and less hassles in inputs sourcing. All things being equal, it would be advisable for farmers to produce their cotton independently and realise higher returns