adminSenior Farming Reporter
THE Mashonaland Tobacco Company auction floors opened its doors in Rusape on Wednesday offering the highest price of $5,15 for the quality gold leaf which has put a smile on the faces of excelling farmers.MTC offered the lowest price of 20 cents for primings.
There were mixed reactions with those farmers whose crop hit the jackpot celebrating while those whose crop went for a song felt cheated.
Tobacco Association of Zimbabwe president Mr Guy Mutasa, who was monitoring the procedings on Wednesday, expressed optimism that MTC will continue giving deserving farmers value for their money.
He said tobacco farming was a trade benchmarked by escalating demands for a high quality leaf — and under the circumstances it was impossible for the resource poor smallholder farmers to, therefore, improve both the eminence and yield of their crop in order to get better returns on their investment.
“With the highest prize of $5,15 you cannot complain. It’s a fair price. It leaves the farmer with something to take home. We will continue monitoring the trend on the market so that at the end of the day farmers are rewarded for their efforts,” said Mr Mutasa.
“Obviously, you expect mixed feelings if you look at the highest price of $5,15 and the lowest price of 20 cents. Those whose crop went for a song will not be happy, but we have always been advising farmers not to cure primings because they will be wasting their resources for nothing. Quality wise the cheapest tobacco was really bad,” said Mr Mutasa.
As at Tuesday this week, tobacco sales had declined by 17,5 percent to 775 997kg in the first three days of the marketing season.
The decline was attributed to late rains which delayed production and the reluctance by farmers to sell their crop due to low prices. The tobacco selling season began last Wednesday.
During the same period last year, 940 864kg had been auctioned.
According to statistics released by the Tobacco Industry and Marketing Board (TIMB), golden leaf worth $775 997 has been auctioned so far.
In the same period last year, 940 864kg of tobacco was sold raising $2 279 561.
The average price as of Friday was $1,55 per kg, down from $2,41 per kg during the same period last year.
Last week farmers halted the sale of the golden leaf because of the prices being offered by buyers.
The auction later resumed after TIMB met buyers and farmers.
Farmers have in the past complained over low prices which they say hindered tobacco output. Tobacco in Zimbabwe is grown under two systems — the auction where individual farmers sell their golden leaf at the auction floors and the contract system where farmers are financed to produce on behalf of a contractor who will eventually buy out the product.
Some contractors operating in Manicaland include Northern Tobacco, BAT, Mashonaland Tobacco Company and Tain-Ze Tobacco Company, among others. MTC has for the past three seasons been operating its auction floor in Rusape.
The contract farming system has so far handled 10 298kg and the auction system has recorded 765 699kg.
At least 360 319kg went under the hammer at Tobacco Sales Floor (TSF) while Boka Tobacco Auction Floors (BTAF) and Premier Tobacco Auction Floor (PTAF) sold 272 873kg and 132 507kg respectively.
In the period last year, TSF bought tobacco at an average price of $1,58 per kg, BTAF at $1,53 per kg and PTAF at $1,40 per kg while the contract average price per kg was $1,53.
About 14 367 bales were accepted, while 1 871 were rejected for various reasons. Tobacco has become the crop of choice among farmers due to better returns and this has seen most farmers switch from traditional crops such as maize and cotton to the golden leaf over the past three years.
For the 2015 marketing season, 90 000 farmers have registered to sell the crop. Of that number, 16 679 are new growers.
Online Reporter