Sundaymail Editor
Livingstone Marufu —
ZIMBABWE has earned almost US$903 million from 161,382 million kilogrammes of tobacco exported mainly to South Africa and China as at December 1, 2016.
During the same period last year, 145,682 million kgs of tobacco worth just over US$830 million were sold.
In total, tobacco earnings have reached US$1,49 billion since January, indicating a US$100 million increase from last year’s total tobacco earnings of about US$1, 39 billion.
Statistics from the Tobacco Industry Marketing Board (TIMB)’s bulletin show that China accounted for over 64,5 million kgs valued at US$527,2 million.
South Africa bought 22,2 million kgs of tobacco worth US$68,1 million. With an estimated 350 million smokers, China has been spending over US$200 million per annum on Zimbabwean tobacco.
Part of the TIMB bulletin reads, “As of December 1, 2016, 161,382 million kgs were exported to more than 65 countries so far, generating US$902,491 million into the local economy.
“The golden leaf is presently being exported to these countries at an average price of US$5, 59 a kg compared to US$5, 70 (in) the same period last year.”
Belgium has so far bought 19,8 million kgs worth US$92,3 million (average price of US$4,66/kg), followed by Indonesia which has spent US$25,6million on 5,6 million kgs.
Dubai has bought 8,7 million kgs of tobacco worth US$20,6 million. Russia, which was recently overtaken by Dubai, brought US$15,6 million into the local economy from 4,2 million kilogrammes.
Other buyers include Bulgaria, Vietnam, Hong Kong, France, Netherlands, Germany, Holland, Sudan and Tanzania. The country’s 2015/16 output of the golden leaf, at 201 million kg, surpassed the TIMB’s revised production target of 190 million kg.
Though there was an El Nino-induced drought, there was a remarkable growth in deliveries, beating last marketing season’s 198 million kg.
Total tobacco earnings have significantly risen, with farmers — who have dropped in number from 97 616 to 81 794 in the past year — pocketing more than US$586 million from US$566 million in 2014/15.
Buoyed by last season’s success, tobacco growers’ registration has this year increased by 6 percent to 73 492 from 69 518 tobacco farmers in 2015/2016 tobacco farming season.
The area planted has increased from 28 865 hectares last year to 32 865 hectares this year. The Zimbabwe Farmers’ Union said, “We are likely going to have an increased hacterage this year due to a remarkable success we had under dry weather patterns.
“With better rains expected to grace us this year, the golden leaf is likely to improve further from last year’s total output. This is witnessed by an increase in the number of registered growers for the 2016/2017 summer cropping season.”
Starting from November 1 to December 31, farmers will be charged US$10 registration fee. Farmers that do not register by month-end, risk a US$10 penalty for late registration.
From January 1, 2017 the penalty for late registration balloons to US$40 and those that don’t register until the opening of auction floors, the penalty fee rises to US$90.
Penalties are designed to encourage farmers to register early as this would give TIMB accurate figures on the production levels of that particular year.
Online Reporter