Plan to set up cotton gin still in pipeline

IN its most recent annual report, the Namibian Agronomic Board outlines its intention to stimulate cotton production in Namibia.It plans to do this through small-scale production in rural areas.

For this purpose, the Cotton Task Team (CTT) was established in October 2000. It will provide training, partial loan guarantees, input supply facilitation and market facilitation to potential cotton producers.Since Namibia does not possess a cotton gin, raw produce has to be transported to South Africa at great cost.Therefore the Board has decided to establish a local cotton gin, which is to be built at Rundu.Construction of the project is still pending, however.When asked about the current feasibility of the project, Christof Brock, CEO of the Namibian Agronomic Board, said: “As long as farmers in rich countries, especially the US, are being heavily subsidised by their government, there is little chance that cotton production in Namibia will take off.”Subsidisation ensures that international cotton prices remain artificially low, and therefore make entry into the market near to impossible.Coupled with the fact that Namibia has to export its raw cotton to South Africa, it is unlikely that cotton will play a major part in Namibia’s agriculture in the future.”It will provide training, partial loan guarantees, input supply facilitation and market facilitation to potential cotton producers.Since Namibia does not possess a cotton gin, raw produce has to be transported to South Africa at great cost.Therefore the Board has decided to establish a local cotton gin, which is to be built at Rundu.Construction of the project is still pending, however.When asked about the current feasibility of the project, Christof Brock, CEO of the Namibian Agronomic Board, said: “As long as farmers in rich countries, especially the US, are being heavily subsidised by their government, there is little chance that cotton production in Namibia will take off.”Subsidisation ensures that international cotton prices remain artificially low, and therefore make entry into the market near to impossible.Coupled with the fact that Namibia has to export its raw cotton to South Africa, it is unlikely that cotton will play a major part in Namibia’s agriculture in the future.”