Regional Markets

3 Cases
market is far from free. It is clear that strong organisations that can promote farmers
interests, such as the FCPA,are needed to negotiate prices and make farmers aware of
international prices (communicated through the Liverpool Cotton Price Index).
It took some effort for the farmers to obtain a fair price for the 2009/10 season. The
initially announced price was 0.30 USD per kilogram. Thanks to the capacity building
they received (which included trainings on costing and price calculation), farmers had
already calculated the breakeven price to be 0.45 USD per kilogram. They decided to
wait and not to sell their cotton at a loss. The farmers in Mount Darwin District stored
their cotton at home , while they waited for cotton merchants to review the prices.
In other parts of the country the FCPA and other community based organisations
agreed that farmers should hold on to their cotton cropuntil prices became reasonable.
In Mount Darwin, 750 cotton farmers (500 women and 250 men) sold crop for 0.50
USD per kilogram or higher. On the country level, about 8,000 farmers (out of 20,000
nationally) sold their crops for 0.50 USD per kilogram or higher (ActionAid).
Innovation and sustainability
The proposed establishment of warehouses can be seen as an innovation, as this concept
is new in Zimbabwe. It allows farmers to bulk their crops, which enhances their
negotiating power because they can offer larger quantities to a single buyer. The attention
paid to gender-specific challenges and opportunities introduced a new approach
to promoting equitable gender relations within the community and the household.
Another innovation, this time in agricultural production inputs, is the new varieties
of cotton seed from research stations that allowed smallholders to increase production
per hectare. In terms of sustainability, the project has strong local ownership and
is farmer-driven. The farmers themselves also execute the leadership positions at the
Federal Cotton Producers Association. Previous projectshave demonstrated that strong
farmer organisation is essential for farmers as producers and consumers to claim their
rightful positions in the value chain. Furthermore, partnership with the private sector
will ensure increased benefits for smallholder farmers along the value chain.
Achievements
Farmers realized that involvement in the value chain, through an association like the
FCPA, can make a difference. FCPA’s bargaining efforts resulted into two of the FCPA
leaders being called to sit in the Agricultural Marketing Authority board which is mandated
to deal with all agricultural marketing issues. This means that any issues discussed
at the board will help in providing important support to farmers’ problems at the association
level. Further, the FCPA was able to be registered as a Trust which helped farmers
to be represented while waiting for the normal registration of the Association. Farmers
being represented brings them in a position to receive advice which will now help
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