Tobacco sales rake in $60m

Senior Business Reporter
ZIMBABWE has earned about $60 million from the export of 16,4 million kilogrammes of tobacco since the opening of the marketing season a few weeks ago. According to the Tobacco Industry and Marketing Board (TIMB) weekly report, Zimbabwe exported 16,4 million kg of the golden leaf at an average price of $3,57 a kg to 39 countries.

During the comparable period last year, Zimbabwe had exported 15,1 million kg to 32 countries at an average price of $3,66 a kg generating $55,3 million.
Leading the pack of major consumers of the golden leaf so far is Belgium, which has bought 8,9 million kg worth $3,4 million at an average price of $3,57 a kg.

The United Arab Emirates is on second position having spent $6,8 million importing 2,3 million kg of tobacco at an average price of $3 a kg.
China, which for the past four successive years has been the major importer of Zimbabwe flue-cured tobacco, was on third position consuming 1,86 million kg worth $13,86 million at an average price of $7,45 a kg while South Africa and Russia were on fourth and fifth positions respectively.

The neighbouring country has bought 1,5 million kg valued at $6,4 million at an average price of $4,19 per kg while Russia has spent $3,4 million on 1,3 million kg of tobacco at $2,59 kg on average.

A total of 100,925 farmers have so far registered to grow tobacco compared to 84,952 during the same period in 2013.
“Last week’s days of trading yielded about 14,8 million kg averaging $3,25 a kg. This was two million more than what was sold the previous week. Seasonal sales at nearly 54 million kg are 18,8 percent firmer than 2013 sales during a similar period,” said TIMB.

It said the seasonal average price recorded $3,15 per kg which is 16 percent weaker compared to last year’s average.
Meanwhile, tobacco farmers have expressed concern over the weak prices at the auction floors this season with some representative organisations urging their members to withhold their crop to press for favourable pricing.

The tobacco sector is critical to the economy.  Since the adoption of the multi-currency system in February 2009, it has provided liquidity support in the economy through exports.