happiness Chikwanha
Edgar Vhera
Agriculture Specialist Writer
THE cumulative volume of tobacco sold under the country’s auction and contract systems had surpassed 200 million kilogrammes by Day 68 with farmers pocketing US$700 million dollars buoyed by a 15 percent increase in price.
Statistics released by the Tobacco Industry and Marketing Board (TIMB) show that contracted and self-financing growers have sold 201 468 354 kilogrammes of tobacco, a 25 percent decline from last year’s 269 071 217.
Growers have also earned US$697 656 793, a 14 percent drop from last year’s US$813 679 270.
Farmers who planted the crop using their own finances have sold 11 319 704 kilogrammes of tobacco valued at US$40 807 952 at the auction floors garnering an average price of US$3, 61 per kilogramme.
Auction sales represent six percent of all tobacco sold to date both in value and volume terms.
Farmers under the contract arrangement delivered the outstanding 94 percent after selling 190 148 650 kilogrammes of the golden leaf worth US$656 848 840 at an average price of US$3, 45 per kilogramme.
The average auction price is U$0, 16 higher than that at the contract side for every kilogramme sold.
This year’s total tobacco average price of US$3, 46 per kilogramme is 15 percent higher than last year’s US$3, 02.
The highest prices at the auction and contract floors have remained constant at US$5, 07 and US$6, 99 per kilogramme respectively. The lowest price has remained static at US$0, 10 for a kilogramme.
The bale rejection rate for the 2024 season is five percent higher than last year’s with the auction side recording more at 14 percent while the contract remains at two percent. The average bale weight of 75 kilogrammes is six percent lower than the 80 kilogrammes recorded in 2023.
Tobacco volumes delivered to both auction and contract floors have reached 68 percent of last year’s total of 296 135 214 kilogrammes.
In value terms it represents 78 percent of last year closing value of US$896 982 582.
Zimbabwe Tobacco Growers Association (ZTGA) chairman, Mr George Seremwe said most farmers had finished selling their crop and were doing preparations for the upcoming season.
“The combined influence of a higher average price so far this year and acceptance of the local currency (ZiG) by most established input stockists will, most likely result in more farmers freeing themselves from the contract debt trap,” he said.
Tobacco Farmers Union Trust (TFUT) vice president Mr Edward Dune concurred saying a lot of farmers had finished marketing their crop and were doing seedbed management, land preparation and liming.
“We advise farmers to ensure that they sign transparent contractual agreements in view of the predicted better season, thanks to the forecast La Nina,” Mr Dune said.
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