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Elita Chikwati, Agriculture News Editor
TOBACCO deliveries to the floors have risen 83 percent year on year, generating US$198 million in earnings for farmers, statistics released by the Tobacco Industry and Marketing Board (TIMB) have shown.
The TIMB figures indicate that 67,2 million kilogrammes of the golden leaf, worth US$197,7 million, have since gone under the hammer since the opening of the marketing season on March 4.
This marks an increase of 48 percent from the 38,8 million kilogrammes valued at US$133 million that were sold during the corresponding period last year.
Prices have, however, remained low, with the average price at US$2,79 per kg on Wednesday compared to US$3,44/kg.
The bulk of the crop has been sold through contract floors, with a paltry five percent sold at auction floors.
At least 67,2 million kilogrammes of tobacco worth US$190 million have been sold under contract, while 3,8 million kilogrammes valued at US$7,8 million came from self-financed farmers.
The highest price offered at the auction floors since the opening of the season is US$4,92/kg, while US$5,75/kg was offered at the contract floors.
During the same period last year, the highest price of US$6,30 per/kg was recorded.
Tobacco growers are supposed to get their money within two days of completing their sales, according to Statutory Instrument (SI) 77 of 2022.
“If you do not receive your payment within this stipulated period, contact TIMB immediately for assistance.
“The board is committed to ensuring farmers receive your payment on time and that your hard work is rewarded in good time,” TIMB advised farmers.
Zimbabwe Tobacco Growers Association (ZTGA) president, Mr George Seremwe, said the season was progressing well and volumes to the floors had increased.
“Volumes are picking up on the floors, with farmers looking to sell early when prices seem viable. Average prices are still low, but we are expecting an improvement. Farmers are getting paid on time, and we have not received any complaints about delays in payments.
“Cost of production is still high and is further exacerbated by the many charges and levies deducted from farmers’ earnings. It is, however, generally good,” he said.
Tobacco production has been on the increase, with the industry now targeting to start value addition.
The Government launched the Tobacco Value Chain Transformation Plan 2 (TVCTP 2), a comprehensive five-year strategy covering the period 2026 to 2030.
The overarching goal of TVCTP 2 is to build a US$7 billion tobacco industry by 2030, anchored on productivity, sustainability, innovation, value addition and market competitiveness.
The strategy is also expected to accelerate the localisation of tobacco financing to reach and sustain 70 percent of production costs, ensuring that more value is retained locally.
Value addition and beneficiation are also expected to increase from the current 11 percent to 30 percent by creating an enabling environment for local processing of cut rag, cigarettes and other tobacco products.
Online Reporter