Tobacco exports hit US$758m

Precious Manomano Herald Reporter

Tobacco exports this year have now reached 153 million kg worth over US$758 million with more to come from the 297 million kg crop bought from farmers.

While the crop is bought over a few months, the initial processing, making up of orders, sale and dispatch is a continuous process over a year.

The 153 million kg compares to 125 million kg valued at US$566 million that were exported during the same period last year, as the country pushes to attain its target of over US$1,6 billion annually.

This marks a 28 percent increase in export earnings from tobacco products. Zimbabwe exports partly or whole stemmed and stripped tobacco, tobacco refuse, cigars, cheroots and cigarillos containing tobacco, cigarettes and manufactured tobacco.

Tobacco export earnings last season increased by 30 percent with earnings reaching US$900 million versus US$763 million recorded in 2020.

Statistics indicate that Zimbabwe is the largest grower of tobacco in Africa and is ranked sixth globally following China, India, Brazil, the United States and Indonesia.

This season the country produced 297 million kg of tobacco compared to 206 million kg produced last season, which is a huge milestone in the history of Zimbabwe since tobacco growing started.

Records with the Tobacco Industry and Marketing Board (TIMB) indicate that over 62 million kg of tobacco worth US$441 million were exported to Far Eastern countries at an average price of US$7,06 per kg.

Over 33 million kg worth nearly US$115 million were sold to African countries at an average price of US$3, 46 per kg, with over 22 million kg valued at over US$54 million going to the Middle east at an average price of US$2, 44 per kg.

European Union markets absorbed over 26 million kg worth nearly US$115 million kg went to Europe at nearly US$16 million at an average price of US$3,83. A further 3 million kg valued at over US$19 million was exported to America at an average price of US$3, 74 per kg.

Exports of tobacco products have been rising with the 2020 season recording US$795 million in earnings, 2021 recording US$837 million and US$998 million for last year. This year’s earnings are expected to surpass US$1,6 billion.

Agriculturist and Tobacco Farmers Union Trust vice president Mr Edward Dune said merchants were, however, benefiting more than the producers of the crop who are playing second fiddle.

He also added that large-scale farmers were getting better rewards compared to their small-scale counterparts.

‘’Tobacco is labour intensive. Producing the crop is viable at large-scale level and above. Farmers need to diversify into less intensive crops like shisha because it is more friendly to the smallholder. It has less labour requirements and has no high nicotine content. To graduate into productive farming, farmers should sign contractual agreements, which they fully understand so that they get what they deserve,’’ he said.

Zimbabwe Tobacco Growers Association chairman George Seremwe recently indicated that tobacco farmers were doing well adding that there was need to eliminate middlemen to ensure farmers got what they deserve.

“Farmers are working hard and we hope they will make profits if they continue growing the crop. TIMB must work on reducing or eliminating the participation and licensing of surrogates who are putting huge mark-ups on their services to the detriment of farmers,” he said.

Around 90 percent of the country’s tobacco is produced by small-scale farmers and this is in line with the Government’s economic transformation agenda that leaves no region, no village or no category of farmers behind.

Zimbabwe is the fourth largest producer of tobacco in the world, and the only developing country among the top six producers and is largely reliant on exports unlike China, India, Brazil, Indonesia and the United States.

Zimbabweans smoke under one percent of what they produce, which almost makes its tobacco an entirely export crop.

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