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Precious Manomano Herald Reporter
Zimbabwe is optimistic that this year’s tobacco exports will surpass 199 million kg exported last year following good rains countrywide which boosted the production of the crop.
So far tobacco exports earned US$383 million from the sale of 73 million kg by March 6, 2023, a substantial advance on the 70 million kg worth US$341 million exported by the same time last year. Tobacco Industry and Marketing Board (TIMB) public relations officer, Mrs Chelesani Tsarwe described this year’s marketing season as a success because of the crop quality produced. She applauded the stakeholders for complying well to regulatory laws by the Board to ensure a smooth running of the season.
“The season is going very well, the crop quality is good and so are the prices. Farmer payments are being done in time as compared to previous seasons. Overally, there is orderly tobacco marketing and stakeholders are adhering to the Board’s compliance frameworks,” she said. Mrs Tsarwe is anticipating that more tobacco will be exported compared to last year.
Tobacco is exported throughout the year although the bulk of the crop is bought from contracted farmers. Merchants then process, grade and store the leaf exporting shipments as orders flow in.
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
This year farmers were aiming to produce a target of 230 million kg of tobacco compared to 212 million kg produced last year.
Latest statistics from TIMB also indicates that 248 million kg of tobacco valued at US $748 million had been sold through auction and contract floors as compared to 160 million kg valued at US $483 million sold during the same period last year.
Meanwhile, TIMB has received complaints of delayed farmer payments and has since engaged Sub Sahara to fast tract payments.
Sub Sahara has since been penalised for such non compliance of their sales and have been suspended until payment issues are resolved.
The board has also established sales supervisors and inspectors who are monitoring questionable selling points in all growing regions.
Tobacco Farmers Union Trust president, Mr Victor Mariranyika, said all farmers were looking forward to a rewarding tobacco marketing season adding that it is critical for farmers to avoid side marketing.
He said the pricing model should take into consideration the production cost in order to sustain farmers.
“Farmers should soldier on and learn to bargain for the real value of their crop. Prices should improve to enable farmers to go back to the fields. There is a need to review the prices so that they meet costs of production. Next season we are looking for a favourable marketing season. Side marketing is the other issue which needs to be addressed to farmers because farmers prefer where they are highly paid. The 85 percent foreign currency retention increase is surely appreciated,” he said.
Zimbabwe produces 6 percent of the world’s tobacco.
A target of increasing tobacco production to 300 million kg per year has been set amid plans to transform the sector into a US$5 billion industry by 2025.
Online Reporter