Chronicle EditorThe 2016 tobacco marketing season got off to good start with firming average prices, more volumes being sold, lower bale rejections, and an increase in exports as well as farmers using the banking system. In the first two weeks of the season, 12,7 million kilogrammes of tobacco were sold, up from 7,3 million kilogrammes sold during the same period last season, which shows the growers’ desire to sell and a sure sign that the payment system is not a hindranceThe average price for the12.7million kilogrammes was firmer at $2,48, up from $2,23 for the same time last season.
Farmers benefitted $31,4 million, all of which went through the banking system from the sale of the 12,7 million kilogrammes of tobacco.
Seasonal exports also increased by 7 percent, something which will not only free up storage space for the tobacco merchants and enable them to buy more tobacco but also an indicator of the demand for the Zimbabwe flavour tobacco.
The highest price in the first two weeks of the 2016 marketing season of $5,60 and $4,99 on the contract and auction floors respectively points to the buyers’ desire to buy good leaf at good prices.
Contrary to perceptions flight in different fora on the participation of the Chinese in Zimbabwe’s tobacco industry, the pricing regime is dominated and driven by the Chinese whose average price for the season is $3.65.
Unlike before where farmers expected good prices for all kinds of leaf, farmers appreciate the need to produce good quality leaf as they understand that leaf quality is the only price determinant.
Bale rejection is lower by a significant 47 percent and this has brought sanity to the industry as unscrupulous buyers who capitalised on rejected bales in previous seasons have been starved.
The few rejected bales are rehandled in shades at the floors and are reoffered. Farmers are encouraged to continue taking up agronomic extension and education offered by Tobacco Industry and Marketing Board and AGRITEX for free to improve on their farming skills.
The Tobacco Industry and Marketing Board encourages growers to bring their tobacco to the floors and not sell it to illegal buyers who go to the farms and make all sorts of misrepresentations about what is happening at the floors.
The more small bales a farmer presents to the floors, the more they incur in terms of floor charges as they are charged per bale presented regardless of sizes which range from 20kg to 120kg.
The increase in the bale average size from 79kg to 82kg is therefore a positive development as growers are encouraged to present bales with reasonable sizes to the floors in order to maximize on the profits from their tobacco farming businesses.
If a farmer is not happy with the price offered for their bale of tobacco he or she can approach growers’ representatives and TIMB arbitrator stationed at all floors to raise their concerns and can withhold their bale for reoffer or take it back to the farm if an agreement is not reached.
There has however been a significant decline in price disputed bales this season both at the contract and auction floors as farmers appreciate, grading, presentation and classification more.
Farmers are reminded that registration for the 2017 tobacco marketing season started on January 1 2016 and farmers are encouraged to pay the registration fee of $10 between now and October 31 2016 to avoid penalties.
Meanwhile the new payment system is operating smoothly as farmers come to the floors on subsequent occasions with correct details captured in the system and have started profiting some of the benefits of financial inclusion.
For any additional information please contact TIMB on telephone numbers 0772145166/9 or 0279-22082/21982 or 025-3439 or 067-24268/29246 or 0277-2700 or 064-7280 or 0271-6772 or Toll Free Number 08006003 or 0731999999 for Whistleblowing. E-mail: [email protected] or visit our website on www.timb.co.zw
Online Reporter