Cotton is grown in many parts of Tanzania Mainland,but more than 95% of the crop comes from Western Cotton Growing Areas (WCGA). WCGA covers about 300kms around lake Victoria and comprises of Mwanza, Shinyanga, Tabora, Kigoma, Singida and Kagera regions. The rest of the crop is grown in Eastern Cotton Growing Areas which include Kilimanjaro, Manyara, Tanga, Morogoro, Coast and Iringa regions

In both areas, cotton is grown by smallholder farmers in an estimated area of about 300,000 to 400,00ha. Though the area under production is big but production continues to be small mainly because, cotton production depends on weather condition and limited supply of inputs mainly insecticides.

PRIVATE SECTOR INVOLVEMENT IN COTTON INDUSTRY.

Liberalization of cotton sector coupled with other reforms geared at redefining the role of the state in economic development has increased the private sector involvement in cotton buying, ginning and exporting. the number of private buyers has increased from 10 during the 1993/04 season to 26 in 2003/04 season. More details about buyers see cotton ginneries The proportion of seed cotton bought by private cotton buyers rose from 9% to 95% during the same period.

Private companies have installed 22 ginneries increasing the number of ginneries from 35 to 57. Given this capacity, its now possible to gin 750,000 bales of cotton within a period of six months. Increased involvement of private sector in cotton buying, ginning and exporting has engendered a competitive environment in the sector thus increasing overall efficiency as farmers have being getting prompt payment. Producer price is now 60% of FOB price.

INVESTMENT OPPORTUNITIES.

In spite of increased private sector participation in the cotton industry, growth of the sector is still slow as exemplified by production not living up to expectations of structural adjustment programme. Private investment is therefore needed in the following areas.

• Large scale farming particularly in Eastern Cotton growing Areas where Large tracts of arable land is idle and where several rivers available can be source of irrigation.
• Production of cotton seeds for planting to cater for the need of the liberalized market. this will be a solution to the problem of cotton seeds mixing and lack of enough seeds for planting during the farming season, the problem which arose from the demise of seed multiplication and supply that operate for a single system.
• New and efficient gins. The gins in use now are very old and outdated because some of them were installed prior to world war II.
• Input and credit supply system that caters for the needs of smallholder farmers under a liberalized environment.

MAJOR CONSTRAINTS FACING THE COTTON INDUSTRY

Transition from the system whereby cotton was being bought, processed and exported under a single marketing chain to the one where multiple buyers are involved under a competitive market environment has been associated with several constrains which are;

• Collapse of seed multiplying industry and increased spread of diseases due to increased unregulated movement of seed cotton between previous breeding and variety zones.
• Lack of input and output markets in marginal cotton producing areas particularly in ECGA and some parts of WCGA of Singida, Kigoma and Kigoma regions
• increased price risk and price volatility to farmers following the withdrawal of the state in price fixing which often cushioned farmers from adverse price movements.
• Unfair competition arising from existing mismatch between the number of active cotton buyers vis-à-vis the amount of cotton available to be bought.
• Demise of regional co-operative unions, which served as smallholder platform against some exploitative private buyers.
  
  These constraints have significantly contributed to the decline in cotton production from 532,440 bales in 1992/93 season to 196,000 bales in 1999/2000 season as well as reduction in cotton quality. Details cotton sector strategy

TCB -Corporate Strategic Plan 2007/08 - 2009/10

TCB conducted a self analysis assessment to establish its strengths and weaknesses in implementing its activities. it also identified the opportunities and challenges which have a major bearing on the achievement of the targets on cotton production and productivity over the 2007/08 - 2009/10 period.

TCB operation over the period 2000 -2007 were guided by the Cotton Sector Development Strategy which broadly defined the objectives, targets and strategies to improve the sub -sector. CSDS was closely supplemented by the Mwanza Resolutions. Generally, neither the CSDS nor Mwanza Resolutions had the means to achieve the defined objectives and targets.

The Corporate Strategic Plan is, however a coherent programme of activities with the established financing to achieve its mandated role in addressing the challenges of cotton sub-sector particularly the challenges of CSDS Against the backdrop of implementing CSDS 1 and Mwanza Resolution, taking into account the array of stakeholders, as well as the policies, strategies and programmes of Government major national and sector plans and programmes, CSP aims to raise cotton output from the current 700,000 bales of lint to 1,500,000 bales in 2009/10. Details: TCB Corporate Strategic Plan