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Koedoeskop Cotton Gin Pvt Ltd. Is A South Africa Buyer of cotton
Cotton remains one of the most versatile crops grown by humanity, noted for its appearance, comfort and the many useful products it provides.
From the seed: flour and feed, refined oil (salad and cooking), margarine, soap and cosmetics, writing materials, rayon industrial fabrics, yarns, plastics, lamp and candle wicks, twine, rugs, mops, furniture upholstery etc.
From the lint: clothes, underwear, linings for canvas, tents, medical bandages, sheets, towels, curtains etc.
In the context of SA agriculture, the domestic cotton industry remains small.
Cotton in South Africa is currently marketed on free-market principles, i.e. there is no intervention or restriction on the buying and selling of cotton and prices are determined by the market.
Farmers market their cotton in one of the following ways:
The seed cotton is sold by the grower to a ginner who gins the cotton and sells the cotton lint for his own account to spinners (and seed to processors), either directly or by making use of agents; or
The grower does not sell his seed cotton to the ginner but contracts the ginner to gin it on his behalf on payment of a ginning fee (some growers also own their own gins). The cotton lint and seed remain the property of the producer who then either markets it himself or contracts the gin or someone else to market the cotton lint (or seed) on his behalf.
The grower can gin their cotton in their own gins. They can then either market the cotton lint and seed themselves or get someone else to do it for them.
Five of the six ginners currently operating in South Africa are farmer-owned.
Challenges to our cotton producers are:
Competition from other summer crops.
Relative high input costs.
High cost of mechanization, i.e. picking costs.
Low cotton prices.
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