Online Reporter
Martin Kadzere
Senior Business Reporter
THE 2026 Tobacco Marketing Season officially kicked off yesterday, with the first bale fetching a price of US$4.60 per kilogramme.
While the atmosphere at the floors remained optimistic, this opening bid sat 5 cents lower than the US$4.65 recorded at the start of last year’s auction.
This came as Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube warned that the growing illegal trade in tobacco seed by unregistered dealers threatened to compromise crop quality and yields and potentially damage the credibility of Zimbabwean tobacco in global markets.
Officially opening the 2026 tobacco selling season at the Tobacco Sales Floor in Harare yesterday, Prof Ncube said the proliferation of illegal tobacco seeds and the illicit distribution of unregistered varieties were serious offences that directly compromised the quality and yields.
This emerges at a time when farmers are being urged to prioritise productivity and quality to maintain profitability, especially as elevated output levels create an oversupply that naturally suppresses prices.
Following last year’s record volume, Zimbabwe’s tobacco sector is set to achieve another record-breaking season. However, the surge in output has sparked calls to prioritise leaf quality to protect farmer margins against the price suppression often caused by oversupply.
Prof Ncube said the illegal sale of seeds compromises the industry’s integrity, devalues years of scientific research, and jeopardises the livelihoods of farmers. “Every illegal plant in the field represents stolen intellectual property, a compromised quality, and a reputational risk to our nation’s golden leaf,” he said.
Zimbabwean tobacco is highly regarded globally for its premium quality and unique characteristics, making it an essential component for blending with lower-grade varieties.
The opening of the selling season at the Tobacco Sales Floor — where the first bale was sold at US$4,60 per kilogramme, compared to last year’s US$4,65 — also marked the official launch of the Tobacco Value Chain Transformation Plan 2 (2026–2030), which builds upon the TVCTP 1.
Lands, Agriculture, Fisheries, Water, and Rural Development Minister Dr Anxious Masuka unveiled the plan, describing it as a roadmap to scale the industry to greater heights and transform the lives of rural communities.
Tobacco Industry and Marketing Board (TIMB) chairman, Mr Patrick Devenish, noted that one of the most urgent challenges confronting the industry is the proliferation of illegal and counterfeit seeds, which undermines productivity, compromises leaf quality, and reduces farmer incomes.
This also threatens Zimbabwe’s reputation in premium markets. “TIMB, in collaboration with Kutsaga Research Board, contractors, law enforcement agencies and policymakers, are intensifying enforcement, surveillance and farmer awareness campaigns,” Mr Devenish said. “We call upon all growers to procure seed only from certified and approved sources.
Protecting our seed is protecting our farmers, our markets, and our national brand.”
Prof Ncube emphasised that strict adherence to best practices throughout the production cycle was now critical for tobacco growers to achieve high quality that translates into higher returns.
“In such periods of (increased production), our supply quality becomes the strongest differentiator,” he said. “Growers are therefore urged to (adhere) to good agricultural practices and (employ) proper curing (methods) to achieve the required colours and texture.”
Prof Ncube noted that the tobacco industry’s future lies in strategic innovation — specifically the development of resilient crop varieties and sustainable curing solutions — to diversify exports and establish a premium tobacco brand capable of achieving a US$1,6 billion revenue target.
He said the newly launched TVCTP 2 will build upon the successes of its predecessor.
Under the first phase, the industry made significant strides in localising tobacco funding, reaching 67 percent of the 70 percent target. The move has been instrumental in reducing dependency on offshore finance and ensuring more value is retained within the local economy.
Prof Ncube said while efforts to diversify farmer income through alternative crops — including hemp — reached 16,5 percent against a 25 percent target, the results provide vital lessons for the next phase.
Significant progress was made in beneficiation and value addition, which rose from 4 percent in 2017 to 10,78 percent. The growth was underscored by recent investments in local tobacco processing and manufacturing facilities, signalling a steady shift towards industrialisation.
The overarching goal of TVCTP 2 is to transform tobacco into a US$7 billion industry by 2030, scaling production to 500 million kgs through irrigation, mechanisation, and climate-smart agriculture.
Simultaneously, the plan seeks to localise 70 percent of production financing while tripling local processing from 10 to 30 percent by fostering a competitive environment for value-added products like cigarettes.
On the global stage, the plan seeks to diversify export markets through the African Continental Free Trade Area (AfCFTA) and develop a premium brand for Zimbabwean tobacco.
Furthermore, the strategy will ramp up Environmental, Social, and Governance (ESG) compliance from 20 percent to 50 percent. This will be achieved through aggressive afforestation, the eradication of child labour, and the implementation of end-to-end digital traceability systems.
With 85 percent of tobacco produced by small-scale farmers, Prof Ncube said the interventions would have a direct, measurable impact on rural economies and household livelihoods.
He also welcomed the return of Philip Morris International to Zimbabwe, noting that their designation of the country as an opportunity market was a significant vote of confidence in the industry’s future.
Despite a slight dip to 115121 registered growers, the sector remains anchored by smallholders. Notably, the total planted area surged by 15 percent to 164 536 hectares.
As of mid-February 2026, tobacco has already generated US$399,8 million in export earnings.
The 2026 season features 48 licenced contractors and 47 Class A buyers. Sales will be conducted through three auction floors —Tobacco Sales Floor, Premier, and the new Ethical Sales Floor — alongside five decentralised centres to reduce grower costs.
The 70 percent US dollar and 30 percent ZiG payment split remains in effect. The industry has streamlined operations by reducing official tobacco grades from 1 320 down to 669 to adapt to modern farming systems.
Peter Tanyanyiwa