Cotton production likely to decrease

The Government's Mozambique Cotton Institute (IAM) has warned that climactic factors in the main cotton producing areas of the Northern Mozambican Province of Nampula and Cabo Delgado are likely to reduce cotton production substantially. The IAM is revising down its estimates for 2007 production. It seems that shortage of rain at a crucial period in the cotton cycle will cut production to between 90,000 and 100,000 tonnes, rather than expected 121,000 tonnes forecast earlier.

Cotton is grown mainly by peasant farmers on small fields less than a hectare in size. Average peasant cotton yields are 550 kilos per hectare. Some 300,000 peasant families grow cotton, and sell their crop to ten concessionary companies. Currently cotton is being sold on the world market for 70 US cents a kilo. The expected drop in production could wipe out any gains that Mozambique might have gathered from the higher prices.