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Edgar Vhera
Agriculture Specialist Writer
THE coming in of tobacco contractor, Voedsel Tobacco, this marketing season has reportedly generated both excitement and apprehension among farmers amid allegations that it is not among the companies registered to do so yet it has offered the highest price so far.
The Tobacco Industry and Marketing Board (TIMB) has not commented on Voedsel’s eligibility to buy the crop on the backdrop of the allegations that it is not registered with acting chief executive Mr Emmanuel Matsvaire promising to respond to this publication’s questions since Friday last week.
A reminder sent to him via WhatsApp yesterday was only blue-ticked. Similarly, efforts to get a comment from Voedsel on the matter were also fruitless as this writer’s calls constantly failed to get through.
Voedsel had by Day 22 of the 2023 tobacco marketing season paid the highest price of US$6,10 per kilogramme, nine percent higher than the US$5,60 per kilogramme that had been reigning supreme before it (Voedsel) started buying tobacco.
Zimbabwe Tobacco Growers Association chairman Mr George Seremwe said affiliates to his association were pleased with Voedsel’s high price, as it would excite competition in the industry, but called on Voedsel to pay within the stipulated 48 hours.
“We are pleased with the development, as it broke the perceived price ceiling of US$5,60 per kilogramme that has been there since start of this marketing season. We, however, encourage Voedsel to pay within 48 hours and stick to the laws of the regulator,” said Mr Seremwe.
Mr Seremwe highlighted that the company had settled a large portion of outstanding payments from last year describing it as a welcome development to growers.
Zimbabwe Commercial Farmers Union president Dr Shadreck Makombe concurred and urged other contractors to offer high prices and also expedite payments after sales.
“Voedsel has come in full force to redeem its name and we believe other contractors will be challenged to try and match or surpass the high price, as this year’s crop is of good quality.
“It is also paying instant cash for purchases and I think other contractors should take a leaf and extend this to their growers,” said Dr Makombe.
Tobacco Farmers Union Trust vice president Mr Edward Dune said US$6,10 per kilogramme was good news, but the same company last year paid high prices on paper and later failed to pay their growers.
“The issue of non-payment for last year’s sales is worrisome, as some farmers have still not yet been paid their dues. This ugly trend should not continue to be witnessed as it promotes side marketing and other delinquent behaviours, which will require extra efforts from other players to restore sanity and sustainability industry,” said Mr Dune.
Meanwhile, Zimbabwe Tobacco Association chief executive officer Mr Rodney Ambrose said though he was still to analyse the sales data, a high price for a few grades and low prices for other grades were not beneficial to farmers.
“If a merchant offers a high price of US$6, 10 for a few grades then lowers prices for other grades, that does not help the farmer. What is important is to see an increase in the average price. As it stands, there is very little improvement to farmers’ welfare, as the slight price increase has been chewed by a 30 percent increase in costs of production,” said Mr Ambrose.
Statistics availed by the Tobacco Industry and Marketing Board (TIMB) on Day 22 trade show that the highest price on the contract side had risen from US$5, 60 per kilogramme on Day 21 to US$6, 10.
The Zimbabwe tobacco contractor analysis report from the Tobacco Farmer Talk (TFT) group saw Voedsel taking the pole position with its US$6, 10 per kilogramme price followed by Premium on US$5, 60 and Tian Ze with US$5, 55.
The report also disclosed that with the exception of Voedsel, other contractors’ high prices were within the US$5 range.
In terms of average prices, Intercontinental Leaf Tobacco (ILT) had the highest value of US$3, 89 per kilogramme followed by Tian Ze on US$3, 68 and Northern Tobacco with US$3,53 as the top three.
For auction floors, Tobacco Sales Floor (TSF) and Premium Tobacco Auction Floor (PTAF) have recorded high prices of US$4,99 per kilogramme with the former receiving an average price of US$2,98 against the latter’s US$2,88.
Online Reporter