Inputs Credit Scheme
This scheme was developed in 1992. It was specifically targeted at smallholder farmers located in communal areas. Cottco believed that the commitment of its own 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.
 
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 and which can be pre-sold on forward contract enabling the company to compete favourably on the international market.