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The 2023 tobacco marketing season opened on March 8. So far farmers have earned more than half a million United States dollars, an increase from the same period of last year’s earnings.
Features Editor Elita Chikwati (EC) talks to TIMB acting chief executive Emmanuel Matsvaire (EM) on how the season is progressing.
EC: Mr Matsvaire can you comment on how the 2023 tobacco marketing season has been progressing since the opening day?
EM: The season is going on well and there is orderly tobacco marketing. As at day 44, 187 million kilogrammes of tobacco valued at US$560 million had been sold as compared to 128 million kg valued at US $382 million same period last year.
EC: What have been the major challenges this season and how do you think they can be solved?
Perennially, growers had issues with delayed payments, but this season we have ensured all contractors pay growers within 48 hours of sales completion. Even though the bale rejection rate is generally low this season, tobacco presentation issues (mixed tobacco, wet, mould etc) account for 97 percent of the rejected tobacco and the balance is for pricing issues. Farmers should focus more on grading and presentation to prevent bale rejection.
EC: TIMB has come up with strategies to curb side marketing. How have you been faring? Is there a decline in side marketing activities?
EM: Side marketing has reasonably gone down due to the strict enforcement of the Contractors’ Administration Compliance Framework and SI 77 of 2022 (prohibition of side marketing) by our inspectors. We recently blocked 448 grower numbers on strong suspicion of side marketing. Farmers who were found guilty of side marketing from this group and other independent cases were convicted and fined. Some serious and repeat offenders are taken to court for criminal prosecution. We continually encourage people to be honest players in the tobacco industry.
EC: A number of farmers have been complaining about contractors who do not pay them after taking the tobacco. How has TIMB dealt with such companies?
EM: Farmer payments are being done on time as compared to previous seasons.
However, we receive isolated complaints of delayed payments most of which are caused by administrative issues and those were paid.
EC: There have been concerns that some companies that were once suspended, for instance Voedsel, have continued to buy tobacco. What is you comment?
EM: We licenced Voedsel because they contracted tobacco growers and had to be the off-takers of the crop they funded. The contracting company also fulfilled the conditions they were given by the TIMB before they could be licenced. Paying back farmers was one of the conditions and they have cleared the outstanding payments. Any growers who are still owed money should come forward and we assist them.
EC: Tobacco farmers have fallen prey to conmen who operate as middlemen at the auction floors. How are you assisting farmers so they are not duped by these illegal dealers?
EM: We have inspectors operating from all regions and they have intelligence operations in partnership with the police. We are operating with tip-offs and we follow these leads to ensure we remove such criminals from our floors and punish them according to the law. We continually urge growers to work with TIMB by desisting from working with middlemen and by giving us details when they are approached by these rogue elements.
EC: The tobacco industry has targeted to increase production to 300 million kilogrammes by 2025. What have you done so far to ensure you meet this target?
EM: There are several initiatives to increase tobacco yield and training is at the top of list. Growers are being trained to improve their knowledge and follow best practices through all stages of production.
This helps them reduce inefficiencies and improve productivity and leaf quality. We licenced new contractors as well to increase the number of tobacco financiers and enacted the Contractors Compliance Administration Framework to stipulates the standard minimum inputs package. This move ensures growers get enough, if not more inputs, and this guarantees a quality crop and increased yield. More investment is also being made into irrigation, climate proofing tobacco farming. We have also introduced several initiatives to reduce harvest and post-harvest losses. For example, the Natural Air Curing Systems (Chigafas) and barn door grading. The portfolio of tobaccos is also expanding with the recent introduction of shisha and jutty to augment cigar wrappers and Virginia.
EC: How far have you gone in creating a US$5 billion industry as envisaged?
EM: Improved production methods and enhanced value addition and beneficiation are our stepping stones towards a US$5 billion industry. Currently, seven cigarette manufacturers operate in Zimbabwe, with a combined production capacity of around 5 billion cigarette sticks per annum. Efforts are being made to increase value addition and beneficiation from the current 3 to 30 percent by 2025. For example, Cutrag Processors Pvt Ltd, is in the process of constructing a new manufacturing facility in Lochinvar, Harare and when it is s completed it is expected to double its processing capacity from the current 1.6 billion sticks per year. Haltrade Pvt Ltd, the manufacturer of ZARK cigarettes, is also expanding its brand portfolio by introducing tobacco one can roll on their own. We also licenced Cavendish Lloyd Tobacco to support the production of shisha and process it locally.
As the regulator, we encourage more players to value add tobacco and we are here to ensure licencing and rally the needed support.
EC: A new type of tobacco; Shisha, was recently introduced, how different is it from the Virginia tobacco and how does this benefit farmers?
EM: Shisha is a type of combustible tobacco that has low nicotine and high sugar content compared to Virginia tobacco. It requires less fertiliser by almost half and does not require topping making it cheaper to produce yet it has higher prices therefore, farmers stand to get more from Shisha. Cavendish Lloyd is the licenced contractor that is supporting the production of Shisha and they have agronomists who train interested farmers.
EC: Zimbabwe is also producing cigar wrappers. How is the production going on?
EM: The production of cigar wrappers is expanding. We had 12 farmers during the 2022/23 season doing 10 hectares and the marketing of cigar wrappers will be starting before the end of May.
EC: Tobacco production is under threat from the World Health Organisation’s (WHO) Framework Convention on Tobacco Control (FCTC), an international treaty aimed to reduce the demand and supply of tobacco. What has TIMB done to prepare farmers for alternatives in the case tobacco is totally banned?
EM: We are currently exploring economically viable alternatives to tobacco through robust diversification programmes. For example, TIMB is now a certified member of Global Gap and we have registered trainers and farm assurers who will work with farmers to ensure compliance with global standards for export crops. Much focus is also on implementing the Sustainable Tobacco Program (STP) and becoming ESG Compliant. Sustainable agricultural practices will reduce the negative effects of tobacco production and our tobacco products will be better ranked on the global market. This focus is embodied in the Board’s tagline For Livelihoods. For Sustainability.
EC: Tobacco farmers have been accused of causing deforestation. What measures have you put in place to ensure farmers do not continue to cut down trees?
EM: The board has several ongoing afforestation programmes targeting both smallholders and large-scale growers to curb deforestation. We also have the SI 116 of 2022 which states that for every hectare of tobacco grown 0.3 should be put under fast-growing tree species for tobacco curing. Law enforcement makes it compulsory for all tobacco growers to establish woodlots.
EC: Some tobacco farmers have been ignoring the dates for the destruction of stalks leading to the spread of diseases. What are you doing about that?
EM: TIMB field officers in all tobacco-growing regions carry out awareness campaigns on tobacco stalk destruction.
We encourage farmers to comply because it is a law. Failure to do so will result in punishments and fines administered by TIMB and Plant Quarantine Services.
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