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Oliver Kazunga Bulawayo Bureau
Tobacco exports earned US$195 million from the sale of 53 million kg by March 12, 2020, a substantial advance on the 40 million kg worth US$174 million exported by the same time last year.
Tobacco is exported throughout the year although the bulk of the crop is bought from farmers over a few weeks.
Merchants then process, grade and store the leaf exporting shipments as orders flow in.
Statistics from the Tobacco Industry and Marketing Board (TIMB) show that for 2020, the Far East has accounted for 18 673 tonnes followed by the European Union with 11 205 tonnes and the Middle East with 8 981 tonnes while the rest of Africa, is at the bottom with 6 967 tonnes since many other countries grow at least some tobacco.
Meanwhile, tobacco farmers have since indicated that they are ready to start delivering the irrigated crop to the floors and their contracted buyers floors ahead of the 2020 selling season whose start date is yet to be announced.
Traditionally, the marketing season opens in March.
TIMB has since announced its commitment to ensure farmers will this year get 50 percent of their income in foreign currency.
Last season, TIMB announced a new marketing system just a few days before the floors opened, which saw farmers withholding produce while buyers also pushed for a review of the new arrangement that would see them getting 70 percent while Government retained 30 percent.
This year’s tobacco output is projected to decline by 13 percent to 225 million kg from a record high of 259 million kg in the previous marketing season largely due to drought.
Zimbabwe generates US$1 billion annually from tobacco exports and the sector has in recent years been critical in sustaining the economy through improving the much-needed foreign currency reserves. Considerable value is added locally to the crop before export.
Tobacco merchants do much initial processing, such as removing stalks and getting water content right, and then assemble orders of the exact required grades and quantities.
Finally there are storage, transport and insurance additions to value.
The country exports to over 60 countries around the world, among them China, Japan, the United Arab Emirates, Indonesia, Belgium, the United Kingdom, United States of America, Brazil, South Africa, Botswana, Malawi, Egypt, Tanzania, Zambia, Mozambique and Lesotho.
Online Reporter