Vusumuzi Dube
Judith Phiri, Business Reporter
THE Government has said the construction of a new cigarette manufacturing plant and cutrag processing factories are underway, a development that will result in an increase in processing capacity by 50 percent in the first half of 2024.
This comes as Tobacco is Zimbabwe’s second foreign currency earner after gold.
Cabinet on Tuesday received an update on the Tobacco Transformation Plan which was presented by the Minister of Lands, Agriculture, Fisheries, Water and Rural Development, Dr Anxious Masuka.
The Plan seeks to increase tobacco production to 300 million kg by 2025 and transform the industry into a US$5 billion industry through exports of tobacco value-added products.
In a post Cabinet briefing, Information, Publicity and Broadcasting Services Minister, Dr Jenfan Muswere said on tobacco exports, Cabinet advises that this season, 145 million kg have been exported at an average price of US$4.97/kg, compared 122 million kg at US$4.54/kg the previous year.
“There are opportunities to increase the level of value addition and beneficiation of tobacco into cut rag and cigarette production from 2 percent of tobacco produced to 30 percent,” he said.
“The nation is informed that there has been an increase in volume as a result of post-harvest loss reduction and yield increase. During the 2022/23 season a record 296.1 million kilogrammes of tobacco, worth US$896 million was produced.”
He said of this production, A1 and A2 farmers contributed 153 320 472 kg and US$480 548 375 of total production, being 52 percent and 54 percent the value respectively, attesting to the success of the Land Reform Programme.
Minister Muswere said the nation was advised that the Tobacco Industry Marketing Board(TIMB) introduced the compliance Administration Framework in 2022 to ensure that farmers received a minimum input package from contractors.
“Additionally, Statutory Instrument 77 of 2022 was introduced in 2022 to criminalise side-marketing of crops. Regarding post-harvest loss reduction, there are ongoing farmer field days, and training, on harvesting, curing, storage, and use of more fuel – efficient barns, to reduces losses from 15 percent to 10 percent.
“The Tobacco Research Board (TRB) developed a fuel-efficient “Rocket Barn” and “the Kutsaga Counter Current 1 barn” which reduced firewood usage by 50 percent. Research on alternative fuel types is ongoing at the TRB. The tobacco industry merchants have a voluntary levy collected under the auspices of the Sustainable Afforestation Association, which commenced planting eucalyptus trees in 2014,” he added.
He said was a 1 percent increase in the tobacco seed sold this season and a 3 percent increase in area planted to irrigated tobacco compared to the previous year.
The Minister said to accelerate localization of tobacco funding to 70 percent of the cost of production by 2025, the Reserve Bank of Zimbabwe recently removed the requirement compelling tobacco merchants to source offshore financing to fund production and for buying green leaf from farmers.
“Cabinet advises that to increase the production of alternative crops and increase their contribution to the farmers’ income to 25 percent by 2025 , TIMB is now offering GLOBAL GAP Consultancy services to enable tobacco farmers to access global export markets for horticultural crops. Additionally, agronomic evaluation of imported industrial hemp varities by the TRB has now been advanced to multilocation trials.”
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