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THE 2015 tobacco selling season — which was deferred from the traditional mid-February — is set to officially open next week — with small-scale farmers who planted late being urged not to rush the curing and grading processes.Traditionally, the season starts mid-February and ends around mid-August, but the Tobacco Industry Marketing Board (TIMB) has advised stakeholders that the 2015 auctioning season opens on March 4.
The delays were ignited by the late arrival of rains, late planting and harvesting by farmers.
“Accordingly, sales bookings opened on Wednesday, February 18, and deliveries were being accepted as from Wednesday,” said TIMB.
Tobacco in Zimbabwe is grown under two systems — the auction where individual farmers sell their golden leaf at the auction floors and the contract system where farmers are financed to produce on behalf a contractor who will eventually buy out the product.
TIMB said that Boka Tobacco Auction Floor, Tobacco Sales Floor Limited and Premier Tobacco Auction Floor were licensed to conduct auctions this year.
Some contractors operating in Manicaland include Northern Tobacco, BAT, Mashonaland Tobacco Company and Tain-Ze Tobacco Company, among others. The local tobacco market continues being dominated by China.
Contracting companies are expected to open from March 9 onwards.
Zimbabwe mainly exports its tobacco to China, South Africa, Belgium, Malaysia, Indonesia, Singapore, Egypt, Montenegro and Russia.
Tobacco Association of Zimbabwe (TAZ) president, Mr David Guy Mutasa, of Matambura Farm, Rusape, said farmers should not rush to sell their golden leaf.
“The majority are grading and ready to sell. The current harsh economic situation has seen almost all farmers running out of money. Many want to sell as quickly as possible to finance their operations.
“Small-scale farmers are yet to start or are in the process of curing because of late planting, while most commercial farmers have hundreds of bales ready for the market. Those who are still harvesting should not rush the curing and grading process because these are the most critical stages, which if messed with can break and bury a farmer.
Farmers must not shoot themselves in the foot just because the auction floors have opened. They must take their time to produce a better crop,” said Mr Mutasa.
Mr Mutasa, who is also the only black tobacco seed producer in Manicaland, said they would be monitoring the tobacco pricing matrix closely to ensure that farmers are rewarded for their hard work.
However, fears abound that the 2014/15 tobacco season may turn out to be probably worst for the bulk of small-scale tobacco farmers whose current crop has dropped in yield and quality.
Tobacco farming is benchmarked by escalating demands for a high quality leaf — and under the circumstances it was impossible for the resource poor smallholder farmers to, therefore, improve both the eminence and yield of their crop in order to get better returns on their investment.
“It is evidently clear that the quality of tobacco by small-holder farmers is poor. The crop is both qualitatively and quantitatively poor. It is not looking good and is far below the standard that Manicaland is known for.
“The negative consequence is that this decline in yield and quality of small-holder tobacco in Manicaland may have a huge bearing on the national output. Generally the tobacco quality and quantity was compromised by the late rains and then heavy rains that pounded in January, which was sadly again followed by a long dry spell. Those with a good crop must fetch a good price bearing in mind that there is shortage of tobacco,” said Mr Mutasa.
Statistics from TIMB show that total exports have so far yielded revenues of $187,4 million, with China having purchased 19,1 million kilogrammes of tobacco worth $166,5 million, at an average price of $8,72 per kg.
The TIMB figures show that South Africa is currently the second largest export destination for local tobacco as it has taken up 1,8 million kg worth $6,8 million bought at an average price of $3,77.
Russia is the third largest buyer, after having imported a total of 667 200 kg of Zimbabwean tobacco worth $925 402 at an average price cost of $1,39 per kg.
United Arab Emirates is fourth having exported 650 043kg of tobacco worth $2,57 million sold at an average $3,97 per kg. Overall, 25,2 million kg of tobacco have so far been exported for $187,47 million. The total average price has improved to $7,44 per kg from last year’s $3,36 in the similar period. On the other hand, Zimbabwe has imported a grand total of 39 600kg of tobacco from India and China.
TIMB says about 88 500 farmers have so far registered to grow the crop, up from 85 100 during the same period last year. Total flue-cured tobacco output in 2014 amounted to 216 million kg, compared to 165,85 million kg realised in 2013.
Zimbabwe in 2014-15 targeted to produce nearly 240 million kg on the back of increased cropping.
Farmers sold about 216 million kg of the crop, passing the 200 million-kilogramme mark for the first time since 2001.
Online Reporter