Average tobacco price down 9pc

A total of 42,3 million kilogrammes of tobacco worth $117,9 million have been sold since the opening of the 2015 marketing season, statistics released by the Tobacco Industry and Marketing Board show. However, this is lower than 45 million kilogrammes valued at $136,5 million sold during the same period last year.

Statistics that the TIMB released on day 30 of the selling season show that of the total tobacco sold this year, contract buyers bought 29,8 million kilogrammes, valued at $52 million, while the remainder was shared among auction floors.

The seasonal average price of tobacco is $2,76 per kg, reflecting a 9,13 percent drop from last year’s $3,03 per kg.

Prices at contract floors are averaging $2,93 per kg, far higher than at auction floors where the average is $2,35 per kilogramme.

According to the TIMB, tobacco is fetching the highest price of $6,25 per kg at the contract floors and $4,99 per kg at auction sales.

The golden leaf is fetching a lowest price of $0,10 per kg at both auction and contract sales floor.

Poor prices dampened the opening of this season, with auction floors offering as little as $0, 60 per kg, prompting protests by farmers which temporarily suspended sales.

The farmers accused merchants of colluding to undervalue their tobacco, citing higher prices often offered at contract sales floors.

Merchants denied the allegations, insisting that they could not pay more for low quality tobacco.

The crop this year is of low quality as it was produced under a challenging environment characterised by late and patchy rains.

Consequently, there were a lot of unsuccessful re-plantings, resulting in poor crop establishment and unevenness in growth.

The most affected farms were in the A1 and communal sectors because of their lack of irrigation facilities.

Most of the A1 and communal farmers planted tobacco at the end of November, with more than 60 percent of the dry land crop planted after the first week of December.

Zimbabwe expects 190 million kilogrammes of tobacco to be sold this year, compared to 216 million kilogrammes sold in 2014. — New Ziana.