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Edgar Vhera
Agriculture Specialist Writer
EARNINGS from tobacco drift towards US$800 million as cumulative flue-cured tobacco sales reach US$793 million by day 65 of the ongoing 2023 marketing season.
Statistics from the Tobacco Industry and Marketing Board (TIMB) indicate that farmers had, by day 65, sold 263 million kg of flue cured tobacco worth US$793 million.
AaàThis is a 54 percent increase from last season’s 170 million kg that earned US$516 million.
The sales figure has eclipsed the previous record of 259 million kg produced in 2019 by one percent.
Auction floors have so far sold 19 million kg of tobacco worth US$54 million in comparison to last year’s 11 million kg that earned US$36 million.
This is a 69 percent increase in volume and a 51 percent rise in value.
There has been a 11 percent decline in average auction floor price from US$3, 23 per kg in 2022 to this year’s US$2, 89.
Auction floor sales account for seven percent of total seasonal sales in volume and value terms.
The contract floors have so far traded 244 million kg with a value of US$740 million against the previous season’s 159 million kg worth US$480 million.
This is a 53 percent increase in volume and a 54 percent surge in value.
The highest price recorded so far remains at US$6, 10 per kg at the contract floors with the auction side recording US$4, 99 per kg.
Last year’s highest price was US$6, 80 per kg at the contract floors with the lowest standing at US$0, 10 per kg.
Farmers have pocketed US$674 million with the balance being paid in local currency at the prevailing interbank rate.
As trading continues stakeholders are looking forward to see how close will the final figure be to the 2025 target of 300 million kg, though some think it will be reached by end of this marketing season.
“Definitely we will surpass the 260 million kg this marketing season. In the fields, the yield potential was close to 300 million kg,” said Zimbabwe Tobacco Association chief executive officer Mr Rodney Ambrose recently.
Online Reporter