Tobacco sales drop

Business Reporter
TOBACCO sales for the 2014/15 marketing season are down by 21 percent for the week ending March 20 compared to the same period last year.

Latest statistics from the Tobacco Industry and Marketing Board (TIMB) indicate the cumulative auction sales amount to 2,5 million kilogrammes at an average price of $1,60 per kilogramme and 4,7million kgs have been bought by contractors at an average price of $2,23 per kg.

During the same period in 2014 about 3,7million kgs of auction floor tobacco was sold at an average price of $2,42 per kilogramme while contract purchases recorded 6,6million at an average price of $3,14 per kg.

Zimbabwe Commercial Farmers Union president, Wonder Chabikwa, said most farmers were delivering low grade tobacco due to the late rains which affected this year’s crop.

“Buyers this season are demanding top quality tobacco. Most farmers, however, have low grade tobacco. This is due to the rainy season that began late and affected the crop’s growth. This has also pushed the prices down,” he said.

Chabikwa said the low grade tobacco was being sold for as low as $0,50 per kg and the average price was $2 per kg.

“Prices for low grade are very pathetic. The lowest price is $0,20 per kilogramme compared to an average of $2,00 to $2,50 per kilogramme last season,” he said.

Chabikwa urged TIMB to keep track of the international markets in order to advise farmers to plant accordingly.

“Some buyers are telling farmers that prices are low on the international market hence the low prices they’re offering. TIMB must keep track of the international demand so that farmers produce to meet demand,” he said.

Tobacco farming is a major employer in Zimbabwe and one of the country’s most important industries, accounting for 29 percent of total exports.