Cottco bemoans high production costs

STATE-RUN cotton dealer, Cottco, has said rising production costs and exchange rate volatilities, which have wreaked havoc on the economy, piled pressure on its margins.

Presenting an update for the second quarter which ended on September 30, 2021, company secretary Jacqueline Dube yesterday said they were not likely to benefit from rising international lint prices, which surpassed US100c/lb.

“The rising costs of local cotton production continue to put pressure on the company’s margins due to the various exchange rates prevalent on the market which are being used by some suppliers as a basis for costing,” she said.

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