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Edgar Vhera
Agriculture Specialist Writer
FARMERS have pocketed US$745 million from the sale of 216 million kilogrammes of tobacco at both auction and contract floors reaching the 83 percent mark of 2023’s total earnings of US$897 million.
Statistics released by the Tobacco Industry and Marketing Board (TIMB) show that farmers – contracted and self-financing had sold 216 093 041 kilogrammes of tobacco worth US$744 526 147 by Day 77.
The earnings, however, fell 13 percent from the US$852 762 455 farmers had received during the corresponding time last season.
In volume terms it dropped 23 percent from 281 856 727 kilogrammes to 216 093 041.
Self-financing growers have sold 12 335 687 kilogrammes of tobacco valued at US$44 456 122 at auction floors at an average price of US$3, 60 per kilogramme.
Auction sales represent six percent of all tobacco sold to date both in value and volume terms.
Contracted growers have delivered the balance of 94 percent after selling 203 757 354 kilogrammes of the golden leaf worth US$700 070 024 at an average price of US$3, 44 per kilogramme.
The average auction price continues to rule the roost remaining U$0, 16 higher than that for the contract for every kilogramme sold to date.
This year’s total tobacco average price of US$3, 45 per kilogramme is 14 percent higher than last year’s US$3, 03.
The highest prices recorded at both auction and contract floors have remained constant at US$5, 07 and US$6, 99 per kilogramme respectively with the lowest price remaining static at US$0, 10 for a kilogramme.
The bale rejection rate for the 2024 season is seven percent higher than last year’s with the auction side recording more at 14 percent with the contract floors at two percent. The average bale weight of 76 kilogrammes is six percent lower than the 81 kilogrammes recorded in 2023.
The cumulative tobacco crop currently sold under both the auction and contract system has reached 73 percent of last year’s total of 296 135 214 kilogrammes.
Zimbabwe Tobacco Growers Association (ZTGA) chairman, Mr George Seremwe said the season was progressing well and the forecasted 240 million kilogramme target by end of season was within reach.
“The season is progressing well and it’s likely the projected target will be achieved. We give credit to farmers who have worked extremely hard in this El Nino-ridden season to produce the good quality tobacco,” the ZTGA chair said.
The increase in average prices this year will encourage more farmers to venture into tobacco farming next season, he believes.
“Farmers are preparing to sign contracts and we are coming from a meeting with merchants and contractors to come up with the contractual framework and iron out gray areas.
“Land preparation, seed bed establishment and complete tobacco stalk destruction to prevent spread of diseases are the predominant activities farmers are seized with at the moment,” highlighted Mr Seremwe.
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