Online Reporter
Martin Kadzere, Zimpapers Business Hub
Tobacco industry players are urging a collaborative stakeholder focus on farmer efficiency and to combat a potential price slump next year, driven by this year’s record output and potential supply glut.
Zimbabwe achieved an unprecedented harvest of 354 million kilogrammes last year, exceeding the national target by 54 million kg. Tobacco is Zimbabwe’s largest foreign currency earner after gold, providing livelihoods directly to thousands of households in rural areas.
While a short-term win, the massive output has created a potential market glut, evidenced by some merchants still holding on to significant volumes of the crop due to a lack of immediate buyer appetite.
The challenge is exacerbated by an ambitious target of 400 million kilogrammes for this year, a target that, if met, will only deepen the market oversupply and further drive down the prices.
According to some industry players, the “ultimate losers” in this production boom are set to be the small-scale farmers who have driven the record output but possess limited financial cushions.
“Current overstocking is severely affecting prices, and the 400 million kg target could make things worse,” tobacco expert Mr Tapiwa Masedza said.
“To prevent the farmer from being the ultimate loser, we need dual action…improving farm-level efficiency and strategically managing the national tobacco volume.”
This year, the authorities successfully navigated a potential crisis for tobacco farmers. Production surged past the initial 300 million kg target, which quickly depleted merchant budgets.
To absorb the excess volume, the Tobacco Industry and Marketing Board (TIMB) had to urgently engage merchants to mobilise additional funds.
Given last season’s average price of US$3,36 per kg, this required an extra US$181 million to purchase the surplus crop.
The situation mirrored developments in Malawi, where the Government there was forced to purchase tobacco directly from farmers after commercial buyers stopped purchasing, having met their trade requirements.
The recent China-Zimbabwe Tobacco Expo was aimed at securing increased off-take from Chinese firms and ensuring market stability for the rapidly expanding output.
“The expo seeks to mobilise Chinese companies whom we would want to link with our local companies to buy local tobacco,” TIMB chief executive Mr Emmanuel Matsvaire said ahead of the expo.
“We are basically bridging the market gap of the extra volume, and it is important that we become proactive. We are growing our volume and that growth has to correspond with the market.”
Zimbabwean tobacco holds a premium position in the global market, particularly the flue-cured Virginia leaf, known for its excellent aroma, flavour and texture.
The top-notch quality makes Zimbabwe’s tobacco highly sought after for blending with tobaccos from other regions to enhance the overall quality and taste profile of final cigarette products globally.
However, the high demand is typically subject to specific procurement limits; international buyers and contracting companies operate with predetermined purchase agreements.
This means that while the quality is outstanding, buyers will generally only acquire tobacco up to their specific operational needs, which contributes to the current market saturation when local output significantly exceeds those contracted or required buying levels.
As of October 1, 2025, Zimbabwe’s tobacco exports had hit 921 million kg valued at US$169 million, marking a decline from the US$184 million shipped during the same period last year.
