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Edgar Vhera-Agriculture Specialist Writer
WITH just a day left before the Tobacco Industry and Marketing Board (TIMB) conducts the final auction mop-up sales set for tomorrow, statistics show that both auction and contract deliveries have reached 99 percent of the 300 million-kilogramme target set for 2025.
Contract sales will continue to operate until such a time when individual contractors have fully received all their tobacco.
Figures from TIMB show that there has been a 43 percent increase in volume sales from 206 402 030 to 295 660 862 kilogrammes by Day 110 at both the auction and contract floors.
The value has increased by 42 percent from US$631 881 223 to US$895 561 317 over the same time period.
The Government policy of 85 percent foreign currency retention in growers’ foreign currency account (FCA) saw US$761 million being transferred into growers’ FCA accounts with the 15 percent balance paid in local currency at the ruling interbank rate.
TIMB public affairs officer Mrs Chelesani Tsarwe said Zimbabwe Leaf Tobacco (ZLT), Northern Tobacco (NT) and Mashonaland Tobacco Company (MTC) were the largest contractors the previous season.
The same feat looks set to be repeated this season with TIMB statistics indicating that ZLT was on pole position again with 15 percent intake from all the contract sales. NT was second with 12 percent while MTC came third on 10 percent as at August 17.
Tian Ze leads the pack with the highest average price of US$3,55 per kilogramme followed by Magiures on US$3,44 and International Leaf Tobacco (ILT) on third with US$3,36.
An analysis of prices at contract floors showed that Voedsel achieved the highest of US$6,10 per kilogramme, ahead of Digital with US$6 and Export Leaf Tobacco (ELT) on US$5,80.
One licenced contractor, Bullion had not bought any tobacco by Day 110.
TIMB statistics also show that Tobacco Sales Floor (TSF) accounted for 65 percent of all the auction purchases with Premier Tobacco Auction Floor (PTAF) on 35 percent.
TSF had the highest average price of US$2, 93 per kilogramme with PTAF at US$2,74 while the highest price at both auction floors remains at US$4,99 per kilogramme.
International Leaf Tobacco (ILT) had the largest share of auction purchases with 23 percent. Country Agro and MTC came second and third with 12 and 10 percent shares respectively.
ILT has to date paid US$11 million for its tobacco auction purchases, followed by Tain Ze on US$7 million and MTC also with US$7 million.
Tian Ze has paid the highest average auction floor price of US$4,13 per kilogramme. MTC sits on second with a price of US$3,38 while Achievers are on third at US$3,16.
The Government crafted the Tobacco Value Chain Transformation Plan (TVCTP) in 2021.
The TVCTP sought to achieve the six objectives of sustainable intensification of tobacco production to 300 million kilogrammes, enhancing transparency and fair tobacco marketing, reforming, restructuring and rebuilding institutions in order to raise and optimise the net export benefits for tobacco from the current 12,5 percent to 70 percent by 2025, increasing tobacco value addition and beneficiation from the current two to 30 percent by 2025 as well as facilitate the production of alternative crops to tobacco to diversify and increase the contribution to farmer revenue and enhance traceability in face of climate change and anti-tobacco campaign.
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