Plexus Mozambique, a company operating in the cotton sector in Mozambique’s Cabo Delgado province, has given up on a project to produce its own cotton due to a drop in the price of cotton on international markets, the company’s director said.
Speaking to Mozambican daily newspaper Notícias, Faustino Catingue said that the current season’s cotton price was 10 meticals per kilo as compared to 15 meticals last year, which forced the company had to rethink its project.
Whilst it does not produce its own cotton, Plexus Mozambique will continue to buy cotton produced by family sector farmers in around 750 villages in the provinces of Cabo Delgado and Nampula.
“The rural workers receive cotton seeds and support starting with preparation right up to harvesting and our company buys all of the cotton produced at market prices,” said Catingue.
In the last agricultural campaign, Plexus, which is a subsidiary of British group Plexus Cotton, bought around 24,000 tons of raw cotton and this year expects to buy 32,000 tons, on which it will spend US$12 million.
The company has two cotton processing factories in the city of Montepuez, in Cabo Delgado province, and in Namapa, Nampula province. (macauhub)