While cotton growing and ginning is a top agricultural export industry in Tanzania, the sector has been struggling for the past 50 years. Two main factors have led to the stagnation in productivity in the cotton sector. One problem is a general lack of knowledge about how to best operate within the global industry, the other is a lack of cohesiveness between sector groups. Small cotton ginning operations compete with each other from year to year. This competition makes them unwilling to contract farmers for the long-term. Contract farming for the cotton sector in Tanzania has gained popularity. Contracts would give the farmers the training and knowledge needed to improve practices and output. Better agricultural practices, including the correct use of pesticides and improved cotton seeds, can significantly increase annual cotton production. This increase will improve the livelihoods of individual farmers and the industry overall.

A three-part contract farming model was developed within the past few years, involving local government, farmers and ginners. Each district helps farmers negotiate with ginners, advocating for the interests and needs of farmers. Farmers then make arrangements to supply one ginner with cotton and, in turn, the ginners provide training and other services to the farmers.