Online Reporter
Edgar Vhera
Agriculture Specialist Writer
THE average price of tobacco under the auction system has for the fourth consecutive day overtaken that of the contract system, as farmers grossed US$466 million after Day 41 of the 2025 tobacco marketing season.
Statistics released by the Tobacco Industry and Marketing Board (TIMB) show that this is the fifth time the auction price has surpassed the contract price since the start of the marketing season.
The average contract price has been ahead of the auction price with the variance between the two narrowing from a high of US$0,74 to the current negative of US$0,06 per kilogramme.
Farmers under both the auction and contract systems have so far sold 137 031 957 kilogrammes of tobacco valued at US$465 838 801.
The volume is 2 percent higher than last year’s figure of 129 030 939 kilogrammes. In value terms, this represents a six percent rise from 2024’s US$458 176 157.
Self-financing growers have sold 7 239 990 kilogrammes of tobacco valued at US$25 044 574 at auction floors garnering an average price of US$3, 46 per kilogramme.
Tobacco that went through the auction system represents five percent of all sales to date both in value and volume terms.
Contracted farmers have delivered the balance of 95 percent after selling 129 791 967 kilogrammes of the golden leaf worth US$440 794 227 at an average price of US$3, 40 per kilogramme.
This year’s total tobacco average price of US$3,40 per kilogramme is four percent lower than last year’s US$3, 55 per kilogramme.
The highest auction and contract sale prices are US$4,99 per kilogramme and US$6, 30 per kilogramme respectively. The lowest price for both floors has remained static at US$0, 10 for a kilogramme.
The bale rejection rate for the 2025 season is now 17 percent higher than last year’s with the auction side recording more at 13 percent while the contract side has two percent. The average bale weight of 81 kilogrammes is seven percent higher than the 76 kilogrammes recorded in 2024.
Tobacco Farmers Union Trust (TFUT) president, Mr Victor Mariranyika, said this was good and encouraging news for all tobacco growers.
“The contract system is infested with surrogate companies who are preying on tobacco growers.
“As tobacco farmers we are for any development that frees us from the contract farming dependence syndrome,” he said.
The TFUT boss said self-financing tobacco farmers can bargain for real value of their crop at auction floors better than those producing under contract where they face unjustified charges.
“Our farmers have to grow up and view the whole process of tobacco production and marketing as purely a business issue,” he lamented.
“Currently we are reeling under contractual agreements, which are crafted by contractors and are skewed against farmers.”
Zimbabwe Tobacco Growers Association (ZTGA) chairman, Mr George Seremwe, concurred saying the trend in the past was that of higher auction prices higher compared to their contracted counterparts.
“Contract farming is short-changing farmers by paying high prices for just a few bales with the rest being lowly priced,” he said.
“The auction system should be given prominence and authorities (Reserve Bank of Zimbabwe and Finance Ministry) must participate in financing tobacco production under the smallholder category.”
