daniel chigunwe
Business Writer
THE Tobacco Industry and Marketing Board (TIMB) says it has rolled out several initiatives to improve farmers’ viability and ensure an annual yield of 300 kilogrammes by next year.
Under the Tobacco Value Chain Transformation Plan, approved by the Cabinet in 2021, the Government is targeting to increase output to 300 million kg by 2025 while the crop’s value would improve to US$5 billion.
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 2 percent.
Tobacco remains Zimbabwe’s second largest foreign currency earner after gold primarily cultivated by small-scale farmers who were allocated land under the land reform programme.
In 2023, the country exported 236 million kg of the golden leaf raking in US$1,3 billion with an average export price of US$4,99 per kg compared to US$5,23 this year.
The country’s tobacco exports are primarily destined for markets in the Far East, Africa, the Middle East, and the European Union with countries such as China, the United Arab Emirates, South Africa and Indonesia, being among the major consumers of the golden leaf from Zimbabwe.
In a statement, TIMB acting chief executive officer, Emmanuel Matsvaire, said as part of a cocktail of measures to promote viability of the growers, reduce production costs and improve yield to desired targets, the marketing board has this season partnered with Zesa for reliable power supply.
“The TIMB has rolled out several initiatives that improve tobacco growers’ viability and ensure an annual yield of 300 million kilogrammes of tobacco by 2025 to grow the tobacco industry into a US$60 billion industry by 2028.
“The board has partnered with the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) to ensure a reliable power supply and reduce production costs for tobacco farmers this season.
“Farmers need electricity for several operations on the farm which include irrigation, a key farming activity that accounts for good quality and weight,’ he said.
To augment this, TIMB has also partnered with other stakeholders to provide a coal facility where registered tobacco farmers get discounted coal for tobacco curing.
Traditionally, farmers used to obtain coal at a cost of +US$65 per tonne before Value Added Tax (VAT).
However, Lands, Agriculture, Fisheries, Water and Rural Development Minister, Dr Anxious Masuka, has successfully negotiated with coal suppliers like Hwange Colliery Company Limited for relatively lower coal supply rates.
“The coal is now accessible at US$45 per tonne before VAT, saving at least US$20 per tonne.
“The 2023/24 season was the maiden year of the programme, and 5 319 tonnes of coal were procured through the initiative, and this translated to approximately US$100 000 in savings,” said Matsvaire.
In the 2022/23 farming season, Zimbabwe produced a record crop of nearly 297 million kg largely due to good weather conditions as well as improved agronomy support by the contractors.
However, in the 2023/24 cropping season tobacco output decreased by 22,2 percent to 231 million kg due to the adverse effects of the El Nino harsh weather condition.
Zimbabwe and other countries in southern Africa have experienced the El Nino-induced drought, which locally due to a bad 2023/24 agriculture season — has seen most of the crops and pastures declared a write-off with water sources drying up.
On account of the normal to above normal rainfall weather experts forecast in the 2024/25 cropping season, TIMB said, there has been an increased uptake of coal by tobacco growers with some contractors bringing their small-scale farmers into the programme to ensure they remain viable and can pay off their debts.
“For sustainability these initiatives not only reduce the cost of production at the farm level, improve the grassroots tobacco farmer’s livelihood and ensure a constant supply of energy needed in all production stages but also encourage alternative curing fuel reducing pressure on forests and allow their recovery as we transition into a green economy,” said Matsvaire.
The above initiatives are aligned to the Tobacco Value Chain Transformation Plan and Rural Development 8.0 which seek to encourage farmers to take farming as a business, improve rural livelihoods, create employment, and grow the national economy as per the country’s Vision of an upper middle-income society by 2030.
Tobacco remains one of the key cash crops with tangible margins and a guaranteed market.
“What remains key for now, is to ensure that tobacco farmers consider DIY (Do it yourself) cost saving strategies as well as taking advantage of the above and other initiatives introduced by the Government and TIMB.
“All registered tobacco farmers are eligible to access the electricity and coal facilities and can register with TIMB at the head office, all seven regional offices or reach out on social media,” he said.
Bongani Ndlovu