admin
Edgar Vhera
Agriculture Specialist Writer
TOBACCO farmers had by Day 32 earned US$348 million from the sale of 116 million kilogrammes of flue cured tobacco compared to the US$270 million they had pocketed during the corresponding period last season. This marks a 29 percent increase in earnings and 28 percent rise in volumes respectively.
Auction floors have so far sold 10 million kilogrammes of tobacco worth US$30 million in comparison to last year’s six million kilogrammes that earned US$20 million.
This represents a 67 percent increase in volume terms and a 55 percent rise in value terms.
There has been a seven percent decline in average auction price from US$3, 11 per kilogramme in 2022 as compared to this year’s US$2, 90.
The contract floors have so far traded 106 million kilogrammes with a value of US$318 million against the previous season’s 84 million kilogrammes worth US$250 million.
This marks a 25 percent increase in volume terms and a 27 percent surge in value terms.
There has been a slight one percent rise in average contract price from US$2, 97 per kilogramme in 2022 against this season’s US$3, 01.
The highest price recorded so far has been US$6, 20 per kilogramme at the contract floors with the auction side recording US$4, 99 per kilogramme. Last year’s highest price was US$6, 50 per kilogrammes at the contract floors with the lowest standing at US$0, 10 per kilogramme.
Government’s reviewing of last season’s foreign currency retention percentage from 75 to 85 this year has seen growers pocketing US$296 million with the balance being paid in local currency at the prevailing interbank rate.
There has been a 26 percent rise in bale rejections prompting stakeholders to air their concerns calling on farmers to properly grade their tobacco.
The average bale weight has shown a three percent increase to 79 kilogrammes up from 76 last season.
The second round of the Crop, Livestock and Fisheries Assessment Report has revealed that there was likely a nine percent increase in production to 234 745 tonnes against last season’s 212 703 tonnes.
If the average price remains at the current US$3, 00 per kilogramme, the country will earn over US$700 million from the projected 234 745 tonnes to be sold by end of season, marking an eight percent increase.
However, as better quality tobacco is likely to be delivered, as the season progresses, earnings are projected to increase further as the average price is likely to rise from the current average.
Online Reporter