Tobacco sales generate $540m

Business Reporter
TOBACCO sales have generated $540.9 million from 182.3 million kilogrammes that have gone under the hammer since the beginning of the marketing season in March, latest official data show.

Last year, during the comparable period, 196.6 million kg had been sold raking in $578.5 million. The figures from the Tobacco Industry and Marketing Board (TIMB) also show that about $302.1 million has been generated from exporting 68.3 million kg of the golden leaf to various parts of the world at an average price of $4.22 a kg.

During the same period last year, Zimbabwe had exported 55.4 million kg worth $289.3 million kg at an average price of $5.22 a kg.

The seasonal sales under contract and auction arrangement also show that 31 million kg of the golden leaf have been delivered by the farmers through the auction system generating $88.5 million so far.

Most of the crop has come through the contract arrangement where 151.2 million kg have been delivered so far generating $452.4 million. The average price under both auction and contract arrangement was $2.85 a kg and $2.99 a kg respectively.

A total of 22 buyers were licensed by the TIMB to buy the golden leaf at the three auction floors.

Tobacco remains one of Zimbabwe’s major foreign currency earners and following the adoption of a multicurrency system in February 2009, the sector has anchored the economy by improving liquidity supply.

Zimbabwe exports flue-cured tobacco to 56 countries compared to 41 during the same period last year. In 2016, the country raked in $933.6 million from 164.4 million kg of flue cured tobacco exported across the globe.

Zimbabwe exports flue-cured tobacco to countries that include China, South Africa, Vietnam, Lebanon, Honduras, Laos, United Arab Emirates, Japan, Brazil, India, Zambia, Botswana, Malawi, Jordan and the United Kingdom.

The major consumer of Zimbabwe flue-cured tobacco, China has so far spent $125.9 million on 15.6 million kg while the country’s other key trading partner, South Africa was on second spot importing 7.8 million kg at $21.7 million.