CASH-CROP PRODUCTION IN ZIMBABWE: POSSIBLE STRATEGIES TO SUSTAINABLY REVIVE THE COTTON AND TOBACCO INDUSTRIES

Agricultural activities are critical elements in determining the level and pace of sustainable economic development in Zimbabwe. Cash crop production, in particular, has made significant strides in social and economic developments in most developing countries. Besides being the major agricultural export crops, tobacco and cotton have facilitated the growth of forward manufacturing industries, whose contribution to the economy remains noticeable and critical. However, after the year 2000, the aggregate contribution of these prime crops declined, leading to the collapse of related downstream industries, and an increase in poverty levels in some communities. Henceforth, this paper visited cotton and tobacco production levels with the focus of suggesting possible strategies and polices that can be instituted to sustainably revive these industries in Zimbabwe.

into the industry in the successive season leading to large deliveries that ultimately push prices down.Such fluctuations could not guarantee a stable cotton-to-clothing industry.Evident, as well, in the figure above are the low export volumes for the cotton industry itself, for example $81 million in 2009.These low export figures are a sign of a depressed cotton industry and also a cause of the huge volumes of clothing imports from Asian countries and neighbouring countries, such as Zambia and South Africa.The portrayed pattern in figure one above is also one explanation to high formal unemployment rates in the country, owing to the contraction of the whole cotton-to-clothing value chain.The table 1 shows the quantities of cotton exports from 2005 to 2014.Besides exportation of raw cotton, there is affirmation of a contracting cotton industry, especially in the multicurrency period, beginning 2009, and worsened in 2013 and 2014.
Cotton marketing in Zimbabwe.Cotton marketing, since independence until 1994, was predominantly the responsibility of the central government.The Cotton Marketing Board (CMB) had the sole national mandate of buying, ginning, selling and exporting all cotton related outputs, like lint, cotton seed, cotton oil and animal feed.Cotton pricing was centrally gazetted by the government and reviewed every selling season.However, in 1991, the government of Zimbabwe adopted a series of capitalism-oriented policies, which gave birth to major economic and social structural reforms.Such reforms led to the privatisation of CMB in 1994, which changed name to Cotton Company of Zimbabwe Limited (Cottco).Following this liberalisation and the 2009 deregulation, other private players joined the market, and thus increased the demand for cotton, with market forces and future-farming-contracts determining the buying-and-selling prices.Tobacco farming in Zimbabwe.Tobacco is Zimbabwe's top export cash crop.Tobacco farming was predominantly done by white commercial farmers prior to the government land reform programme of 2000, supplying over 95% of tobacco to the auction floors.After the land redistribution exercise, however, small scale tobacco farmers are now accounting close to 85% of tobacco deliveries on the auction floors, with the difference being accounted by semi-commercial and commercial farms.Virginia flue-cured, burley, oriental and dark-air cured tobacco resistances are the four major tobacco varieties grown across Zimbabwe, with virginia and burley being the most, accounting for over 90% of tobacco production.Zimbabwe (1995Zimbabwe ( -2010)).The volumes of tobacco deliveries to the auction floors between 1995 and 2000 were on average above 191 000 tonnes.The highest tobacco production was in 1998, reaching a record high of 226 000 tonnes.Unlike cotton whose production was fluctuation over the years, tobacco output persistently declined to a record low of only 55 000 tonnes in 2006.The combination of successive decline in cotton and tobacco production between 2007 and 2009, worsened the country's foreign exchange position, increased unemployment of all factors of production and adversely affected the general livelihoods of the general households.Tobacco marketing and export destinations.Beginning 1936, during the colonial era, tobacco purchases, processing and selling (including exporting) was purely the mandate of the Tobacco Marketing Board (TMB).In 1997, TMB was re-constituted and it changed name to Tobacco Industry and Marketing Board, and tobacco selling was now done via the auction floor system.By 2004, a dual tobacco marketing system was adopted, with the introduction of contract-growing-and-marketing structure.

Comparison of tobacco and cotton production in
The table two below summarises Zimbabwe's top six export destinations from 2010 to 2014.South Africa (90.2%) and Mozambique (7.6%) are Zimbabwe's largest tobacco export markets, with Mozambique being the fastest growing market.These statistics provides a basis for further research as to why Mozambique is buying tobacco in Zimbabwe -Is it the case of tobacco processing industries in this country or there are overseas agents based in Mozambique who buy tobacco for shipping to world markets?In 2014, 95,89% of the tobacco exports were unmanufactured, while 2,65% and 1.22% were cigarillos & cigarettes and pipe, chewing & snuff tobacco, respectively.Suggested economic strategies to revive the cotton and tobacco production.In proposing the following policy measures and strategies, the researcher took into account the fact that cotton and tobacco crops are central towards the revival of the industrialisation process in Zimbabwe.In addition, unless exported as finished products, the crops suffer heavily from depressed international markets.
1. To ensure consistent and reliable supply of quality cotton yearly, the government should revive backward-and-forward linkages between cotton farmers and processors.This can be done in various forms:  Setting aside State farms (strategic farms) for the cultivation of cotton, whose output will guarantee the minimum industrial requirements.It may not necessarily be state farms per se, but identified individual cotton farmers devoted towards the production of this crop  Promotion and facilitation by government of win-win contract farming in areas suitable for cotton growing.The government will act as a third party towards ensuring that both parties to the contract diligently adhere and benefit from the marriage.The Agricultural Extension Officers should provide both the technical and legal expertise required by farmers.
When the state is actively engaged and involved in the farming of cotton, it is easier to guarantee supply and to influence buying and selling prices.This suggested model demands that government enforces property rights and security of investment by private players.
2. The government should consider crafting cotton and tobacco buying and selling models.The minimum allowed buying price per kilogram must be at least the average cost per kilogram of production and must vary upwards with the quality of the crop.
3. There is need for government to institute some or all of the following:  Subsidise cotton and tobacco farmers to reduce production costs.This can take the form of subsidising the required inputs or issuance of farming financial grants.Where public resources have been committed, thorough follow-up, monitoring, evaluations, assessments and control measures must be instituted, with appropriate action taken basing on the outcome.
 In case of strategic farming model, farmers must be given incentive backed quotas (minimum required output per farm/farmer).Incentives will vary from financial to nonfinancial-farm equipment, construction of farm infrastructure, exemption from certain statutory obligations, among others.
4. Cotton and tobacco research and development institutions must be equipped fully to ensure the fabrication of disease tolerant and highly productive crop varieties.
5. The country must prohibit the exportation of unmanufactured tobacco, raw cotton or even lint.This policy will warrant supply of adequate raw materials to downstream industries and promote value-addition of Zimbabwean export-bound output.

CONCLUSION
Persistent drop in tobacco buying prices, especially at the beginning of the selling season, will contribute extensively to the contraction of the industry in the near future.Most commercial and communal farmers will be forced by economic pressures (especially unreasonably low buying prices at auction floors and high input prices) to shun tobacco and cotton productions opting for other crops or income generating activities.Such actions will be detrimental to the recovery of the Zimbabwean economy as most downstream industries (thread, textile, chemical industries, oilseed making and cellulose and tobacco processing firms) will certainly collapse.
As long as the government is reluctant in instituting, enforcing and adhering to development oriented policies and strategies in the agricultural sector, the industrialisation process will not succeed.The gains of land reform process will never be realised.The principle hereby stated should be extended to other economic sectors, such as mining, to realise a prosperous Zimbabwe.

Figure 1 -
Figure 1 -Cotton industry export composition* Figure 2 below provides evidence of successively increasing cotton production levels for the period 1995 to 2000 and a systematic decline from 2004 to 2009.

Table 1 -
Quantities of cotton exports from 2005 to 2014