Popularly known as Cottco, The Cotton Company of Zimbabwe has been in existence since 1969. Over the years it has operated with a number of subsidiary companies. However, in 2008 a restructuring exercise formed a holding company, which led to the birth of AICO Africa Limited.

Cottco was delisted from the ZSE on 1 September 2008 paving the way for AICO which listed on the same day. The companies, which once operated beneath the Cottco umbrella, now joined the holding company, making Cottco one of the subsidiary companies of AICO Africa Limited.

Today, Cottco has earned the position as market leader in Zimbabwe’s cotton industry and supplies premium quality lint to the international market. Cottco is involved in every stage of the cotton production and sales process, and now operates as a cotton procuring, processing and marketing company.

By operating the entire operation from start to finish, the company retains absolute control over the quality of both people and product, thus holding ownership of the responsibility to produce a high quality product and provide excellent customer service. It has taken the responsibility very seriously and its commitment to excellence at every step of production has placed it at the very top of its game.

“Competition is no longer between organisations but among supply chains,” reveals David Machingaidze, Managing Director of The Cotton Company of Zimbabwe. “We are always on the look-out for “quick wins” in the supply chain and using tools and techniques available to ensure that this very important business process becomes a self generating catalyst for continuous improvement.”

Operations
Cottco operates from 29 outlets throughout Zimbabwe’s major cotton producing areas which enables the production and distribution of the product. Transport costs have, in the past, inhibited the movement of cotton, particularly in the case of small scale and communal farmers, but Cottco has collection and processing facilities located in all the major cotton growing areas and subsequently provides the critical link between growers and spinners.

The extent of the company’s expertise does not end at the stage of production but extends right to the point of sale between the firm itself and the end user. Cottco exports in excess of 80 percent of its lint to markets in South Africa, Europe and the Far East.

“During the agricultural season, the company will be actively involved in the provision of extension services to ensure that crops are properly grown and tendered for,” explains Machingaidze. “After harvest the contracted farmers will sell their produce to the company for processing into lint. The bulk of our lint is destined for the international market. The Cotton Company of Zimbabwe operates nine ginneries with a ginning capacity of 265,000 tonnes per annum.”

Inputs Credit Scheme
Developed in 1992, the scheme was specifically developed to target smallholder farmers located in communal areas. Cottco believed that the commitment of its funds on an annual basis to provide seasonal finance to smallholder farmers, none of whom could access funding through normal commercial channels, would give cotton production the boost the company wanted and believed the industry needed.

Under the scheme, Cottco’s technical field staff assist farmers in drawing up their requirements for support in advance of the season. Disbursements, either in the form of cash or inputs such as planting seed, chemicals or fertiliser or a combination of cash and inputs, are made in three tranches and total no more than 60 percent of a farmer’s total estimated production costs.

The first tranche helps with land preparation and planting, the second pest control and weeding, and the third with harvesting costs. All scheme members commit themselves, thus positioning the lint product to compete with top-end Californian and Australian styles. This has added value to the product which can be pre-sold on forward contract enabling the company to compete favourably on the international market.

Ethical Production
Throughout the cotton production process Cottco works with farmers to improve the quality of their crop and offers highly trained field staff that can provide agronomic advice and support. The company’s dedication to enhancing the quality of the crop has an extremely positive effect on the cotton growing communities of Zimbabwe.

While striving for excellence, and being constantly driven by a mission to become a winning world class cotton business, Cottco has not forgotten the elements of business that are paramount to consistently achieving success. The company’s commitment to engage the community not only produces positive results but also enhances the wealth of the local area.

“We hold ourselves to the highest professional standards,” claims the company’s website. “We are people of integrity who are responsible for our environment and the wellbeing of the communities we serve.”

What sets Cottco apart from its competitors is its devotion to create wealth within the community and to continually raise standards of performance. It executes its need for excellence with passion and relentless vigour and consequently brings out the best in its employees. The company’s moral integrity means it understands the needs, feelings, aspirations and ambitions of its workforce and, as a result, the best is brought out in people and this is filtered through to the end product.

“We always strive to ensure that our product offering is shaped around customers and that customers are fully involved in influencing continuous improvement priorities,” states Machingaidze. “We are continuously looking for more efficient and effective ways of delivering goods and harnessing the resources we have and targeting them at the right things. We are always prepared to learn from the mistakes we make and putting in place improvements as we see fit.”

This is epitomised in a case study highlighted by the company about one of the farmers it works with. The family’s way of life had been dramatically enhanced since working alongside Cottco as it had provided them with the tools and methods to make the most of their land and produce the highest quality cotton.

Mrs. Kasaira, one woman who has benefitted from working with Cottco, said: “We resolved never to sidemarket the crop that Cottco funds us each season and that has created a strong bond with the company such that we don’t ever worry about where to get inputs. And with the expert advice we get from its extension officers, our cotton production gives us high yields and returns, enabling us to achieve everything you see here.”

Dedication to quality
“To enhance our competitiveness as a business, we have embedded systems within our organisational structures that will ensure continual quality and productivity improvement,” says Machingaidze. “Such systems are capable of providing our various user departments with the opportunity to meet and surpass the challenges of competition. We have introduced a philosophy of continuous improvement in all aspects of our business.”

Not only do employees of Cottco tirelessly strive to meet the ethical demands of the company, they also have stringent quality requirements to meet. The company adopts the approach that it must provide products and services that exceed the requirements and expectations of its customers first time, all the time and this ethos breeds exceptional customer service and quality; elements the company prides itself in achieving consistently.

“Our members of staff are distinguished by their functional and technical expertise combined with their hands-on experience, particularly in the rural communities that we operate from,” says Machingaidze.

Much of Cottco’s success can be directly related to one key aspect of the company and that is its attention to detail. The company is meticulous when it comes to ensuring all Is are dotted and all Ts are crossed, and it spends a lot of time and research ensuring its product is of the highest quality.

A prime example of this is in the attention paid to the plastic bags distributed to farmers to pick the crop; to prevent synthetic fibre contamination, Cottco provides them with unwoven polyethylene (as opposed to synthetic, woven) bags.

The business’s commitment to quality and customer relationship management principles to producers and customers “can never be equalled by our competitors here in Zimbabwe and elsewhere,” states Machingaidze, boldly.

“We believe in pursuing best in class business standards in all aspects of the company’s operations with a view to the pursuit of excellence in all our operations. We regard ourselves as a corporate citizen living in harmony with all stakeholders that surround us, particularly in the rural communities that we operate from.”

Setting the standard
All Cottco machinery and technology is constantly serviced and upgraded to ensure it can provide its customers with service unrivalled within the industry. Furthermore, the company has practices in place to make sure all its staff are adequately trained and provided with the correct resources to achieve their objectives to the highest possible standards.

“We recognise that our leadership role in people management should not only be confined to giving the vision and mission of the business but should include the most difficult phase of influencing organisational cultural aspects, inspiring individuals and teams, supporting and coaching people while rewarding positive behaviour,” says Machingaidze.

The company aims to regularly review its management systems to ensure it is constantly working effectively and keeping up with the demands of the industry and is constantly at the forefront of development within the industry, aiming to strive to enhance stakeholders’ interests.

“As a business, we believe in looking ahead in anticipation of further economic recovery which should bring about sustainable growth and profitability,” concludes Machingaidze. “The slowly improving global economy and the high prospects of foreign lines of credit will give impetus to the business’s recapitalisation efforts which should definitely usher sustainable business viability.”