Photo: Mozambique cotton farmers during harvest/ TrustAfrica
TrustAfrica systematically supported the Cotton Farmers Association in Mozambique (FONPA) to influence the 2023 cotton pricing mechanism amid reducing global prices.
A mix of policy advocacy training for farmer leaders, technical support to develop farmers’ positions on pricing based on the cost of production and facilitated farmer-government dialogues resulted in the development of a price cushioning mechanism. This was on the backdrop of an unfavourable global cotton prices in 2023, which fell by 27% in response to an 8% decline in global consumption.
In a quest to influence pricing policies, TrustAfrica supported a farmer-led advocacy campaign, facilitating the development of a policy paper along with an advocacy documentary calling for a supportive policy environment that allows for a sustainable production base and fair value to farmers. This resulted in the development of a price cushioning mechanism, giving farmers a stable price against the global price drop.
The price of cotton in Mozambique was fixed at 33 MT/kg (USD 52 cents) against the 26 MT/kg (USD 40 cents) that was initially proposed by cotton buyers. The government approved a subsidy of 7 million (USD 12 cents/kg) to cover the price gap due to the market downturn. The subsidies amounted to USD 5 million for 120,000 cotton farmers. The price and subsidy were approved under Decree No. 30/2023 and published in the public journal “Boletim da República” on May 24, 2023. This is an official Government mechanism to publish laws, regulation in the Mozambique National Press.
