Online Reporter
Agriculture Reporter
SMALLHOLDER farmers have been hailed for their participation in the tobacco industry, which has seen the country realising record production.
Calls have been made for the establishment of independent local financing schemes, if the sub-sector is to maintain high volumes.
So far, tobacco farmers have sold 289 million kilogrammes (kg) of the golden leaf, worth US$970 million, at the sales floors.
This is an increase of 43 percent from the 201 million kg valued at US$697,6 million during the corresponding period last year.
Following the hugely successful Land Reform Programme, tobacco, which used to be the preserve of a few white commercial farmers, is now being grown by communal and A1 farmers, who have been commended for producing a high-quality crop, fetching good prices on the global market. There are 134 996 registered farmers. Of these, 74 123 are communal, while 45 321 are A1 plot holders. There are 7 025 small-scale commercial farmers, and 8 527 from the A2 commercial section.
Tobacco Association of Zimbabwe president Mr George Seremwe praised smallholder farmers and called for affordable funding from financial institutions.
“We have surpassed the target and we are positive that we are going to hit the 300 million kg mark this season. As smallholder farmers, we are doing the best in terms of tobacco production,” he said.
Mr Seremwe bemoaned high production costs, which he said were affecting some growers.
“Our costs of production are very high year in, year out. We always get surprises in terms of costs and other losses,” he said. “We are appealing to the authorities to look into incentivising tobacco production for inputs, which we need to meet and maintain this target; fertilisers, fuel and foreign currency retention, which are eating into our profits.
“We need access to affordable funding. We are calling upon banks to participate, as well as looking at the business. We have met the target and this shows that smallholder farmers are a bankable sector.
“Financial institutions should participate with confidence directly with farmers, not through the contract system.”
Tobacco Farmers Union Trust president Mr Edward Dune applauded smallholder farmers for their hard work.
“The contributions of smallholder farmers to the substantial production of the golden leaf demonstrates that the agriculture sector can adopt a holistic and innovative approach across the entire value chain,” he said.
“By enhancing the value of processed products, this strategy not only stimulates economic growth, but also supports the goals outlined in Vision 2030.
“The smallholder sector is well-positioned to fulfil its vital role in the economy, especially if we capitalise on every opportunity, not just in tobacco and land tenure, but in emerging sectors as well. This potential is bolstered by a favourable macroeconomic policy environment that encourages growth and innovation.”
The increase in tobacco production over the years has been attributed to an increase in average tobacco selling prices, funding from tobacco merchants through contract farming and timely realisation of sale proceeds.
Proceeds from tobacco sales are received on the day the crop is sold.
Farmers have, however, raised concerns over some merchants who do not pay them on time, while others charge exorbitant prices for inputs.
Most farmers are confident that tobacco production will be more viable if they can access funding on their own.
