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Edgar Vhera-Agriculture Specialist Writer
TOBACCO farmers had by Day 56 sold 240 million kilogrammes of flue cured tobacco worth US$722 million compared to last season’s 154 million kilogrammes that earned US$463 million, marking a 56 percent increase in both volume and value terms.
The sales have eclipsed the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development final round Crop, Livestock and Fisheries Assessment Report (CLAFA -2) that had predicted a total production of 234 745 tonnes.
Auction floors have so far sold 17 million kilogrammes of tobacco worth US$50 million in comparison to last year’s ten million kilogrammes that earned US$32 million.
This represents a 73 percent increase in volume terms and a 55 percent rise in value terms.
There has been a ten percent decline in average auction price from US$3, 19 per kilogramme in 2022 as compared to this year’s US$2, 87.
Auction floor sales account for seven percent of total seasonal sales in both volume and value terms.
The contract floors have so far traded 222 million kilogrammes with a value of US$672 million against the previous season’s 144 million kilogrammes worth US$431 million.
This marks a 55 percent increase in volume terms and a 56 percent surge in value terms.
There has been a slight one percent rise in average contract price from US$3, 00 per kilogramme in 2022 against this season’s US$3, 02.
The highest price recorded so far has been US$6, 10 per kilogramme at the contract floors with the auction side recording US$4, 99 per kilogramme. Last year’s highest price was US$6, 80 per kilogrammes at the contract floors with the lowest standing at US$0, 10 per kilogramme.
Government’s reviewing of last season’s foreign currency retention percentage from 75 to 85 this year has seen growers pocketing US$613 million with the balance being paid in local currency at the prevailing interbank rate.
There has been a 37 percent rise in bale rejections prompting stakeholders to air their concerns calling on farmers to properly grade their tobacco.
The average bale weight has shown a three percent increase to 79 kilogrammes up from 77 last season.
As trading is still on-going some observers believe that earnings will reach US$800 million by close of marketing season.
This is possible if the average price remains at the current US$3, 01 per kilogramme and 266 million kilogrammes are sold.
However, as better-quality tobacco is likely to be delivered, as the season comes to an end, earnings are projected to increase further as the average price is likely to rise from the current average.
Online Reporter