malvernmugadzikwa
Senior Business Reporter
THE number of tobacco growers who have registered for the 2024/2025 summer cropping season has increased by 8 percent to 120 983 compared to the same period last year, with the bulk of them being contract farmers, raising hope this year’s target of 300 million kilogrammes (kg) will be met.
Free-funded tobacco constitutes only 7 percent of the crop grown in Zimbabwe and sold under the auction system, a figure the authorities are battling to increase.
The crop is Zimbabwe’s single largest export after gold and provides livelihoods to hundreds of thousands of farmers across the country.
The latest figures from the Tobacco Industry and Marketing Board (TIMB) indicate that a total of 112 445 farmers registered to grow the crop last year.
TIMB said, as of November 15, 2024, the area planted had risen by four percent to 33 970 hectares (ha) against 32 632ha in the comparable period in 2023.
This comprises 16 780ha put under irrigation and 17 190ha of dryland crop, compared to 16 455ha of irrigated crop and 16 177ha of dryland tobacco.
The number of contracted growers stands at 111 501, broken down as 62 188 communal farmers, 37 145 A1 farmers, 5 755 small-scale commercial farmers and 6 413 A2 farmers.
Zimbabwe Commercial Farmers Union president Dr Shadreck Makombe is on record saying the predicted normal to above-normal rainfall in the 2024/2025 season has rekindled farmers’ hopes.
The renewed hope follows the El Niño harsh weather condition experienced in the 2023/2024 summer cropping season.
“Quite a number of farmers are intrigued because it’s indicated by the number or the amount of seeds which were bought.
“It shows that the farmers are geared for a good season and we may talk of a bumper season.
“Everything is promising for a good season and quite a number of growers are hopeful of a better season, with traditional farmers readying themselves for the 2024/2025 cropping season, while new farmers have also come on board,” he said in an interview with this publication recently.
Despite the adverse effects of the El Niño-induced drought, tobacco has proved to be resilient after the country produced 231 million kilogrammes in the 2023/2024 season.
Tobacco remains Zimbabwe’s second major foreign currency earner after gold, primarily cultivated by small-scale farmers who were allocated land under the Land Reform Programme the Government embarked on in 2000.
Last year, the country exported 236 million kg of the golden leaf, generating US$1,3 billion.
As of November 15, tobacco exports had breached the US$1 billion mark to reach US$1,1 billion from 202,7 million kg exported at an average price of US$5,43 per kg. In the corresponding period last year, 206,5 million kg were exported at an average price of US$5,25 a kg, generating US$1 billion.
Zimbabwe’s flue-cured tobacco exports are primarily destined for markets in the Far East, where 100,7 million kg valued at US$719,6 million were sold; the Middle East, where 32,2 million kg worth US$101 million were sold; and Africa, where 26,6 million kg valued at US$111,8 million were sold.
Other export destinations for the golden leaf from Zimbabwe are the European Union, the Americas, Europe and Oceania.
Recently, TIMB announced that it had rolled out several initiatives to improve farmers’ viability and ensure the target of 300 million kg for this season was met, as enunciated in the Tobacco Value Chain Transformation Plan approved by Cabinet in 2021.
With such initiatives to foster viability of the growers, reduce production costs and improve yield to desired targets, TIMB has this season partnered with the Zimbabwe Electricity Supply Authority (ZESA) for reliable power supply.
To augment this, TIMB has also partnered with other stakeholders to provide a coal facility where registered growers get discounted coal for tobacco curing.
Economic analyst Ms Wendy Mpofu commended the Government for promoting the use of coal in tobacco production.
“While we are increasing foreign currency generation through boosting tobacco production, it is also significant to note that the Government is encouraging farmers to produce the crop sustainably.
“We have observed in the past scenarios where farmers cut down trees to cure the crop, but this time around, the authorities are encouraging the growers to use coal, which minimises environmental impact,” she said.
Traditionally, farmers used to obtain coal at a cost of US$65 per tonne before value added tax, but the Government has successfully negotiated with coal suppliers like Hwange Colliery Company Limited for relatively lower rates.
Under the Tobacco Value Chain Transformation Plan, the Government is also seeking to improve the golden leaf’s value to US$5 billion and an additional US$10 billion by 2030.
The plan also seeks to raise localisation of tobacco funding to 70 percent, improve the level of value addition and boost cigarette production to 30 percent from two percent.
Online Reporter