POINT BLANK: We will reach 280 million kg tobacco season’s target

THE 2025 tobacco marketing season is underway, with 85 million kilogrammes of the crop, valued at US$292 million, having gone under the hammer at an average price of US$3,43 per kg as at April 17. Farmers are happy but expect prices to continue firming as the season progresses. Stakeholders are, however, concerned over side-marketing issues that continue to threaten the industry. Our Agriculture News Editor ELITA CHIKWATI interviewed Tobacco Industry and Marketing Board (TIMB)’s acting chief executive officer MR EMMANUEL MATSVAIRE, focusing on this and other issues.

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Q: How does the 2025 tobacco marketing season compare to that of the previous year? What were the key developments at the start of the season, and how has it progressed so far?

A: As at April 17, Zimbabwe had sold 85 million kilogrammes (kg) of tobacco worth US$292 million, averaging US$3,43 per kg.

While the season started slowly, we are witnessing a rise in tobacco deliveries and we are confident we will reach our target of 280 million kg this season.

Q: What is your comment on the quality of the leaf and prices being offered at the floors?

A: The quality of the leaf produced this season is good, characterised by orange and lemon colours, fetching a good price on the market.

The highest price offered to date has been US$6,30/kg, with the average price sitting at US$3,43/kg as at April 17.

Q: What are the positive developments that have happened in the sector, which have the potential to boost production and earnings for farmers in future seasons?

A: TIMB is proud to announce a significant milestone in the decentralisation of tobacco production in Zimbabwe.

For the second consecutive season, tobacco is being successfully grown in Marula, Mangwe district, Matabeleland South.

This is an important step in expanding the crop beyond its traditional strongholds in Manicaland and Mashonaland provinces.

One hundred and twenty-two small-scale farmers are growing 84 hectares of Natural Cured Virginia (NCV) tobacco under a contract arrangement with Atlas Agri.

The contractor has since established a local tobacco sales floor, which was inspected and approved by TIMB and will operate this marketing season.

This season, a new pricing model was introduced. This has brought greater stability, reduced fluctuations and ensured fairer prices for farmers.

Q: Which areas do you think still need to be addressed?

A: Side marketing remains a challenge in the industry. Some growers sell their tobacco to middlemen, others sell tobacco produced under contract at auction floors using other farmers’ grower numbers.

This practice undermines structured markets, while negatively affecting debt and revenue collection, and exposes growers to low value and exploitation.

While it is difficult to precisely quantify them, cases of side marketing have gone down due to the introduction of the Transporter Compliance Framework Statutory Instrument 77 of 2022, Tobacco Industry and Marketing (Side Marketing) Regulations, and the board’s inspectorate unit, which has deployed inspectors to all the tobacco growing regions, investigating and proactively stopping tobacco- related crimes.

Q: More than 90 percent of the tobacco is still being produced under contract, with even debutant farmers choosing to go the contract way, a development that seems to be countering the push to localise funding of the crop. Can you comment on the impact this is likely to have?

A: The major challenge is restricted access to funding from banks because of the lack of bankable collateral by most farmers.

This has pushed them to opt for contract farming.

Q: Farmers have been contributing towards the afforestation levy. How much has been raised so far and how are the afforestation activities going on at the farm level?

A: Afforestation efforts are supported by allocating 1,85 percent of funds collected through tobacco-related revenues.

The Forestry and Sustainable Activities Commission under ESG (environmental, social and governance) initiatives is responsible for utilising these funds effectively.

Q: Tobacco farmers have been diversifying to other varieties, including shisha. How will this impact on the sector?

A: In 2023, Zimbabwe produced 101 600kg of shisha tobacco and increased to 399 400kg in 2024. For the current season, a volume hovering around 650 000kg is expected.

These figures show that there is a definite potential for shisha tobacco farming in Zimbabwe and it will positively impact the sector.

Q: Zimbabwe loses billions through exporting semi-processed tobacco. What do you think should be done to promote value addition?

A: The target was to increase value addition and beneficiation of tobacco into cut rag and cigarettes production from 2 percent of total tobacco produced to 30 percent to increase exports of cigarettes by 2025, and to date we have achieved 10,15 percent.

More effort is being put by the Government and private partners to increase value addition.

Ten cigarette manufacturers with a combined production capacity of around 4,4 billion cigarette sticks per annum are operating in the country.

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