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Oliver Kazunga Business Reporter
A TOTAL of 145,2 million kilogrammes of tobacco have been delivered since the beginning of the selling season in February, surpassing the 2012 final output of 144,5 million kg. Figures from the Tobacco Industry and Marketing Board also show that $537,5 million has so far been raised from the sales.
“Current seasonal sales at 145,2 million kg have now surpassed the 2012 final output which was 144,5 million kg.
“During the corresponding 79th selling day in 2012 more than 116,6 million kg were sold.
“The prevailing prices at all selling points remained stable. The seasonal average price for 2013 is likely to slide down below $3,70/kg as less good quality crop continues to dominate the market,” said TIMB.
The seasonal average price for this year’s crop was $3,70 a kg compared $3,73 a kg during the same period last year.
TIMB said 94,7 million kg of the delivered tobacco was from contract farming, while 50,5 million kg had been delivered under the auction system.
The contract system has so far generated $357,5 million while the auction arrangement has raised $179,9 million.
The tobacco marketing board revealed that 1 984 372 bales had so far been laid at the auction floors compared to 1 497 520 bales during the comparable period in 2012.
A total of 1 882 237 bales have so far been sold compared to 1 419 236 bales sold during the same period last year.
This season 83 012 bales have been rejected while during the comparable period last year 78 284 were rejected.
The reasons for rejection, TIMB said included oversize, underweight, overweight, mouldy, too wet or too dry.
Recently, the tobacco marketing board expressed optimism that this year’s deliveries would surpass the targeted 170 million kg although most of the registered growers have delivered their crop.
A number of the farmers wait to sell the bulk of their crop towards the end of the season.
Online Reporter
Bongani Ndlovu