China demand spurs tobacco earnings

Business Reporter
ZIMBABWE’S tobacco export earnings have since the beginning of the year reached $253 million on the back of higher prices and demand from China.

Latest figures from the Tobacco Industry and Marketing Board (TIMB) show that 45,1 million kilogrammes of the golden leaf have since January been exported to different countries with China leading as the major consumer of Zimbabwe’s flue-cured tobacco.

The Asian country has so far imported 20,2 million kgs worth $164 million at an average price of $8,11 a kg.

During the same period last year, Zimbabwe’s tobacco exports receipts stood at $247 million from 42,4 million kgs with an average price of $5,82 a kg compared to $5,62 a kg at the moment.

Tobacco is Zimbabwe’s single largest export commodity, ahead of platinum and gold.

Other major buyers of the country’s flue-cured tobacco, which is used as a flavouring in cigarettes, are South Africa, Indonesia, Belgium and Russia
South Africa, which at the moment is on second spot as far as Zimbabwe’s tobacco consumption is concerned, has spent $26,2 million importing nine million kgs at an average price of $2,90 a kg.

In third position is Indonesia, which has spent $11,8 million on 2,3 million kgs of the golden leaf from Zimbabwe while Belgium is ranked fourth with $11,1 million expenditure for 2,3 million kgs imported at an average price of $4,93 a kg.

The country’s tobacco import list presently comprises 40 countries compared to 37 during the comparable period in 2015.

The United Arab Emirates, Korea, Greece, Taiwan, Egypt, Sudan, Madagascar, Seychelles, Namibia, Sweden, France, Netherlands, and Germany are some of the countries consuming Zimbabwe’s flue-cured golden leaf.

Meanwhile, $348,8 million has been raked in from tobacco sales at the auction floors since the beginning of the marketing season on March 30.

TIMB has indicated that so far 120 million kgs have gone under the hammer compared to 104,5 million kgs sold during the same period in 2015.
In the comparable period last year     $305,6 million was generated from tobacco sales.