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Edgar Vhera Agriculture Specialist Writer
TOBACCO farmers had by Day 4 of the 2023n tobacco marketing season earned US$7 million from the sale of 2, 5 million kilogrammes of flue-cured tobacco at both auction and contract floors at an average price of US$2, 76 per kilogramme.
The farmers’ United States dollar earnings have since reached US$5, 8 million thanks to the Government’s decision to review the foreign currency retention percentage to 85 from last year’s 75 while the local currency component has almost reached $1 billion.
Day 4 statistics availed by the Tobacco Industry and Marketing Board (TIMB) show a 44 percent decline in sales at 2 489 897 kilogrammes this year compared to the 4 426 569kg traded during the corresponding period last season.
There was a 42 percent fall in earnings from US$12m last year to US$4, 4m at the present.
There was a 3, 87 percent increase in the average price from US$2, 66 per kilogramme in 2022 compared to US$2, 76 this year.
A total of 32 400 bales have since been laid against last year’s 64 596, representing a 50 percent decline.
This year has seen an increase in rejection of bales from 2, 90 percent in 2022 to 4, 65 marking a 50 percent increase.
Successful sales were conducted on 30 892 bales against 62 722 sold last year.
The highest price received has so far been US$5, 50 per kilogramme against last year’s US$6, 50 – a 15 percent decline.
The lowest price received is US$0, 10 per kilogramme for both seasons.
The average bale weight rose 14 percent to 81kg this year relative to 71kg last year.
Meanwhile, Zimbabwe Tobacco Growers Association (ZTGA) chairman Mr George Seremwe said this season’s prices appear more favourable than last season’s although it could be too early to be drawing such parallels.
Mr Seremwe urged TIMB to lower the minimum number of bales required to sanction a sale from 500 saying this was pushing farmers to stay at the floors for one or more days waiting for the numbers to suffice.
“We have written to TIMB on the need to revise downwards that figure to about 200 so that farmers are not forced to stay in town for many days waiting to meet the target,” said Mr Seremwe.
TIMB public affairs officer Mrs Chelesani Tsarwe, said the contractors’ Compliance Administration Framework sets 500 bales (subject to TIMB discretion on situations currently obtaining) as the minimum number of bales that have to be laid for TIMB to authorise sales at a tobacco contract floor.
“However, growers requested a downward review of this figure and TIMB considered this request recognising that when the season starts not all growers will be ready to sell and the same applies towards the end of the season, when they will have sold most of their tobacco.
“The Board will, therefore, reduce the minimum number of bales to 200 and authorise sales whenever there is need to do so,” said Mrs Tsarwe.
Zimbabwe Integrated Commercial Farmers Union (ZICFU) president Mrs Mayiwepi Jiti said TIMB’s statistics were showing a positive trend at both contract and auction floors.
“This increase in volumes delivered by farmers in such a short period of time means farmers are happy with the prices.
“There is an upward trend in the price of primings, which normally get lower prices in previous selling seasons,” said Mrs Jiti.
Mrs Jiti said the average price of US$2, 76 was fair and hopefully prices will firm with delivery of the upper leaves.
“Though farmers are being paid within the agreed time frame, contractors who owe farmers for last season’s crop have not yet been paid them contrary to what TIMB board chair Mr Patrick Devenish announced at the official opening of the 2023 marketing season that they would be paid by last weekend,” said Mrs Jiti.
Tobacco Farmers Union Trust president Mr Victor Mariranyika concurred saying some farmers were still to be paid while other had received half of their dues.
“Deadline for payment of arrears was not met with one of the contracting companies paying some farmers half of their money this Tuesday. This a sad situation as no interest was accrued,” said Mr Mariranyika.
On the contrary Mr Mariranyika said the average price so far received was still far below the production cost driven average of US$3, 33 per kilogramme.
“The TIMB average price is a derivative of the old price model, which has driven small-scale tobacco farmers into losses. Farmers were expecting prices to firm factoring in increased production costs as current ones were making tobacco farming unviable and unsustainable especially for small-scale growers,” added Mr Mariranyika.
There was no official reaction to the allegations from TIMB or the alleged defaulting contractors.
Online Reporter