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Obert Chifamba
THE 2023 tobacco deliveries are now 18 million kilogrammes shy of breaching the target of 300 million kilogrammes per season as envisioned under the Government’s Tobacco Value Chain Transformation Plan of 2021.
This comes as total deliveries at both the auction and contract floors reached 282 million kilogrammes worth US$852 million by Day 77 of the 2023 marketing season. This marks a 51 percent change in volumes delivered during the same period in 2022 when 187 million kilogrammes valued at US$569 million were sold while this year’s earnings have since increased by 50 percent.
The average price for the 2023 season is US$3, 03 per kilogramme while 2022 recorded US$3, 04 per kilogramme.
Statistics availed by the Tobacco Industry and Marketing Board (TIMB) indicate that contract floors have recorded more business at 262 million kilogrammes with a value of US$796 million while their contract floors counterparts have traded 20 million kilogrammes worth US$56 million.
Contract floors have so far recorded the highest price of US$6, 10 per kilogramme against auction floors’ US$4,99 per kilogramme. The lowest price at both floors so far stands at US$0,10 per kilogramme.
At least 93 percent of the country’s tobacco is now produced under contract, as farmers move to escape the high costs of production that almost crippled the industry in recent seasons.
Farmers are this year getting 85 percent of their earnings in United States dollars with the outstanding 15 percent coming in local currency at the prevailing exchange rate of the day.
Online Reporter