Ensuring Stability in Mozambique’s Cotton Sector: JFS-RESET’s Intervention in the 2021/22 Season

The collapse of a key cotton-buying company in Mozambique during the 2021/22 season left farmers in a precarious position, with unpaid seed cotton and disrupted supply chains. In response, JFS-RESET, at the request of the International Association of Operative Millers (IAOM) and in cooperation with the National Federation of Cotton Producers (FONPA), stepped in to assume responsibility for the purchases. This intervention ensured financial stability for farmers, prevented large-scale losses, and maintained confidence in the industry.

Key Findings

1. Immediate Action to Secure Farmers’ Payments

JFS-RESET’s takeover of the seed-cotton purchasing process was critical in ensuring that farmers were compensated for their yields. With the previous company failing to complete payments, cotton producers faced financial insecurity and potential disruption to their livelihoods. By stepping in, JFS-RESET avoided a crisis in the cotton sector, allowing farmers to continue investing in future production cycles.

2. Strengthening Supply Chain Resilience

The sudden collapse of the original buyer threatened the entire cotton supply chain, affecting not only farmers but also processors, textile manufacturers, and exporters. JFS-RESET’s intervention restored confidence among stakeholders and ensured that supply chain disruptions were minimized. This demonstrated the importance of contingency planning and responsive industry leadership in agricultural markets.

3. Collaboration Between Industry and Stakeholders

The success of this intervention was a result of multi-stakeholder collaboration, including IAOM, FONPA, and other industry partners. This cooperation highlights the role of partnerships in safeguarding agricultural industries from unexpected shocks. The case serves as a model for public-private responses to sectoral crises, reinforcing the importance of flexible and adaptive governance structures.

4. Long-Term Implications for the Cotton Sector

Beyond stabilizing the 2021/22 season, this intervention set a precedent for future industry crisis management. It underscored the need for regulatory frameworks that protect farmers, including financial guarantees for buyers and risk mitigation strategies. Ensuring stronger financial oversight, insurance mechanisms, and government support can prevent similar disruptions in future agricultural seasons.

JFS-RESET’s rapid intervention in the Mozambican cotton sector highlights the crucial role of industry players in stabilizing agricultural markets during crises. By ensuring fair payments, maintaining supply chain integrity, and fostering collaboration, this initiative helped prevent economic distress for farmers and reinforce sector resilience. Moving forward, stronger risk management policies and sustainable financing solutions will be essential to safeguard the livelihoods of cotton producers and ensure the long-term stability of the industry.

RESET Foundation is committed with the The Sustainable Development Goals (SDGs). JFS-RESET’s Intervention in the 2021/22 Season is linked to several SDGs:

The SDG'sG's, also known as the Global Goals, were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.