Online Reporter
Precious Manomano
Herald Reporter
TOBACCO farmers are calling for urgent reforms to safeguard auction floors, emphasising the need for decentralisation, automatic decontracting for debt-free farmers and stricter regulatory oversight to ensure transparency and competitiveness.
The farmers believe that without significant changes, the auction floors, a cornerstone of Zimbabwe’s tobacco marketing, may face extinction.
Premier Tobacco Auction Floors operations manager, Mr Sam Garabha, articulated the pressing situation, saying there was need for a regulatory board to intervene.
“The tobacco auction system is enduring tough times due to the dual selling framework we have in Zimbabwe — auction and contract farming. Many farmers are turning to contract farming because they lack the necessary funding to grow their crops. Unfortunately, this has led to a significant decline in auction sales, which currently account for only about six percent of the national tobacco crop. The gap is alarming, and if we do not act now, the auction system could vanish,” he said.
Mr Garabha elaborated on the inherent advantages of the auction system, emphasising its transparency.
“In an auction, multiple merchants compete for the crops, which ensures that farmers have a variety of options. This competition is healthy and beneficial for farmers. In contrast, contract farming typically involves a single buyer, which limits farmers’ bargaining power and can lead to unfavourable pricing,” he said.
He pointed out significant issues such as side marketing, where contractors sell crops they did not fund. “We’ve noticed that some farmers who have financed their own crops are finding their way to contractors instead of selling at auction. This practice undermines the entire auction system and creates confusion. We need a regulatory body that can enforce fair practices and ensure that farmers are able to sell their crops freely at the auction floors without the constraints of contracts,”he said.
Mr Garabha stressed the vital need for decentralisation.
“Currently, auction floors are centralised in Harare, which imposes significant costs on farmers who must travel long distances to access them. We believe that auction floors should operate in all selling points across the country. This will not only reduce costs, but also make it easier for farmers to access the markets of their choice. It is crucial that regulators consider these changes seriously,” he said.
Another critical measure he proposed is automatic decontracting for farmers who have fully paid their debts.
“Once a farmer settles their debts, they should be decontracted immediately, allowing them the freedom to choose where to sell their tobacco. This policy should also apply to contracting companies. When they reach their production thresholds, they too should be decontracted, thereby promoting a more competitive environment,” he said.
Lands, Agriculture, Fisheries, Water, and Rural Development Ministry Permanent Secretary Professor Obert Jiri acknowledged the challenges the industry faces and mentioned that the Tobacco Value Chain Transformation Plan is currently under review.
“This plan, launched in 2021, aims to address critical issues such as low productivity, limited local funding, and minimal value addition. It is essential that we align our efforts with the National Development Strategy 2 and the Agricultural Food Systems and Rural Transformation Strategy to ensure sustainable growth and development in the tobacco sector,” he noted.
During a visit by The Herald to the auction floors, farmers indicated that it is difficult to switch from contract to auction floors.
Mr Shingai Gwese shared his experience.
“Last year, I sold my tobacco to Sub Sahara, but now I find it impossible to sell at the auction floor. I was not contracted to Sub Sahara, but when I tried to sell my tobacco at the auction, they informed me that I was contracted by this company. I funded my crop entirely on my own, so how can they restrict me like this? The decontracting process is painfully slow, and I fear the repercussions of being tied to a contract,” he said.
Mrs Angellah Mawandagara from Tengwe, Hurungwe, said prices at auction floors are fairer.
“The prices at auction floors are significantly fairer compared to contract sales. Payments are made on time, and there are fewer deductions involved. While contract farming may provide some assistance with inputs, much of the money goes towards repaying debts. The delays in decontracting make it incredibly difficult for farmers like me to regain our freedom,”she said.
Mr Pineri Marwizi from St. Bornface, Magunje said the auction system is a more peaceful way of selling tobacco.
“There are fewer deductions, which makes it favourable for us as farmers. We need to protect this system, but that requires immediate action from the regulatory bodies,”he said.
To ensure the survival of auction floors, it is imperative that policymakers heed these calls for decentralisation and stricter enforcement of regulations.
