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Edgar Vhera-Agriculture Specialist Writer
TOBACCO farmers had by Day 120 of the 2022 marketing season sold 208 million kilogrammes of flue-cured tobacco valued at US$636 million at both auction and contract floors.
This marks a 1, 29 percent decrease in volumes and 8, 03 percent in earnings respectively from the 211 million kilogrammes worth US$589m traded during the corresponding period last season.
Auction floors accounted for 13 million kilogrammes of the golden leaf worth US$40m while their contract counterparts recorded higher sales of 195 million kilogrammes valued at US$596m.
The average price the auction floors was US$3, 20 per kilogramme while it was US$3, 05 per kilogramme for the contract floors.
The highest price was US$6, 80 kilogramme that was recorded at the contract floors while the lowest for both floors was US$0, 10.
Last season the highest price was US$6, 70 with the lowest sitting at US$0, 10 just like this season.
The bulk of the country’s crop is sold through contracts since 95 percent of the crop is grown under a contract system while only 5 percent of farmers are self-funded or are able to borrow from banks.
Tobacco remains a key crop for the country’s economy, contributing exports of more than US$1, 2 billion, which excludes the indirect economic activities that are associated with providing services related to production, logistics, marketing and exporting the crop.
In acknowledgement of the crop’s strategic importance to the economy, the Government is spearheading the Tobacco Value Chain Transformation Plan that aims to transform the country’s tobacco value chain into a US$5 billion industry by 2025.
The plan, which was availed last year, focuses on increasing primary production to 300 million kg by 2025, localising financing for small-scale producers, and increasing value addition from 2 percent of total tobacco produced to more than 30 percent.
Tobacco is Zimbabwe’s one of the country’s top foreign currency earners with China and South Africa emerging the major buyers of the golden leaf.
Last year, Zimbabwe sold 211 million kilogrammes of the golden leaf.
Online Reporter