adminZimbabwe’s climate is favourable for the growing of flue-cured Virginia tobacco which does well on sandy loam soils where most grain crops would require a lot of fertiliser and water to thrive. As a result, Tobacco does not significantly compete with food cropping which is mostly done on heavier soils and its production uses only 3 percent of Zimbabwe’s arable soil.During the first 28 days of the 2016 tobacco selling season, $154 million has been realised in the livelihoods of tobacco farmers from the sale of 55 million kg sold at an average of $2,80 compared to $101 million attained from the sale of 37 million kg at an average of $2,73 for the same period last season.
Farmers’ brief protests over the withdrawal limit of $1 000 down from $10 000 culminated in the uplifting of their withdrawal limit by the central bank back to $10 000 so as not to cripple their operations as well as enable farmers to pay their employees.
The Reserve Bank of Zimbabwe also introduced an incentive of five percent for tobacco farmers to continue in this business which earns the country 27 percent of its foreign currency earnings and contributes over 12 percent to the gross domestic production.
The average price for the season has increased by 2,63 percent at a time when the highest price at which tobacco has been sold for per kg this season is $6,25.
Zimbabwe has the highest average price after the United States largely due to the uniqueness of the flavour produced which is well sought after by the international markets.
As the agronomic practices have been improving and farmers gain mastery in tobacco farming, bale rejection for oversize, underweight, overweight, mixed hands, mouldy, too wet or too dry as well as torn tickets have been kept at a minimal with a 40 percent decrease compared to last season.
The good agricultural practices from seed right up to curing including product indemnity and farm economics is leading to a sustainably produced leaf which is suitable for international markets.
Tobacco provides the best economic return per hectare amongst all the major annual crops grown in Zimbabwe.
Income from tobacco is used by growers to develop their farms, livestock production and irrigation schemes.
Zimbabwe cigarette manufacturing generates for the country at least $250 million from the 10 billion sticks produced of which over 80 percent is from export earnings.
The golden leaf is responsible for total direct employment in its production alone of an estimated 350 000 people excluding downstream industries, enabling people employed in the industry to give their children, dependants and families access to education, health, shelter and food.
The tobacco industry is made up of farmers, merchants, processors, manufacturers and the like and has linkages with the fuel sector, agrochemical dealers, fertiliser manufacturers, coal production, packaging industry, automotive industry, freight services, informal sector and finance sector as further strengthened by the financial inclusion drive, among others.
At household level, in terms of dependency on income from tobacco production across the board, the total figure comes up to three million people, which is a significant proportion of Zimbabwe’s population.
Tobacco buying companies on their own employ over 5 000 people while cigarette manufacturers employ about 2 500 people.
The tobacco industry as a whole is a significant contributor to the economic health of Zimbabwe through excise and other duties.
The capital investment in the tobacco industry runs into billions of dollars, covering farming infrastructures, industrial complexes, equipment, machinery for processing and storage facilities.
Sustainably produced tobacco is one that is not produced in a manner friendly to the environment as well as not using child or forced labour.
The tobacco sector has shown responsible leadership by relentlessly addressing the issues of child labour, by dealing with good governance, by promoting export, by supporting thousands of small holder farmers and heavily investing in infrastructure in the country as well as ensuring farmers abide by the laws of the country and employees in the industry work in safe environments.
The industry is seized with tackling deforestation and this has seen the introduction of more efficient barns, experiments with alternative fuel sources as the industry prepares for an extensive afforestation programme.
For additional Information contact TIMB at: 429 Glen Eagles Road, Southerton, Harare or write to us on PO Box 10214, Harare or on telephone numbers 0772145166 /9 or 0279-22082 /21982 or 025-3439 or 067-24268 /29246 or 0277-2700 or 064-7280 or 0271-6772 or Toll Free Number 0731999999 or E-mail: [email protected]
Peter Tanyanyiwa
Online Reporter