A statistical report from the Bank of Mozambique indicates that from January to March, export volumes compared to $3.7 million (€3.1 million) for the same period in 2024, showing a year-on-year decline of 48%.
Cotton generated $120.9 million (€103 million) in exports over the past five years but dropped by more than half in 2024, according to previous official data. These exports fell to $14.2 million (€12 million) in 2024, marking the lowest annual value in at least five years.
Data provided in 2024 by Francisco Ferreira dos Santos, president of the Cotton Association of Mozambique (AAM), highlighted that cotton in Mozambique averaged annual exports of $30 to $50 million (€25 to €42.6 million) over the previous decade. The crop is considered essential: “It has an enormous value chain (…) it is almost a sacred crop, with a catalytic effect on the economy and demography.”
Mozambique accounts for less than 0.5% of global cotton production, a market dominated by countries such as the United States, China, and India.
Despite declining revenues, Mozambique’s cotton production grew by 2% in 2024 compared to the previous year, reaching 24,000 tons, but missed the sector’s targets, according to Finance Ministry budget execution data.
Cotton production fell short of the expected 40,000 tons, achieving only 60% of the target, although it surpassed the 23,516 tons recorded in 2023.
The area of cotton production in Mozambique expanded from 95,097 hectares in 2023 to 96,523 hectares last year.
The Mozambican government announced in May that it would cease subsidizing cotton commercialization in the current agricultural campaign due to a lack of available funds, following the 2025 reference price-setting meeting by the Ministry of Agriculture.
“The important thing is that a possible agreement was reached,” stated Roberto Albino, Minister of Agriculture, Environment, and Fisheries, as noted in a ministry release on the approval, by consensus, of the minimum reference prices alongside the National Forum of Cotton Producers and the AAM.
The new table, according to the ministry, sets the price at 22 meticais (€0.30) per kilogram for first-quality cotton for the 2024/2025 agricultural campaign and 15.5 meticais (€0.21) for second-quality cotton.
In 2024, the Mozambican government announced a subsidy of five meticais (seven cents) per kilogram for cotton purchases to stabilize prices, benefiting 600,000 farmers and encouraging a “culture of trust.”
A lack of rain in some regions due to the ‘El Niño’ weather phenomenon, the abandonment of production in Cabo Delgado province, and particularly market overproduction, pressured prices downwards in 2024. This led the government, for the second consecutive year, to establish a subsidy to maintain producer incomes.
