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Edgar Vhera
Agriculture Specialist Writer
ZIMBABWE Leaf Tobacco (ZLT) is on prime position in contract tobacco purchases as the 2024 marketing season draws to an end with just a handful of farmers still to deliver their crop for sale.
The Zimbabwe tobacco auction and contractors’ analysis report compiled by the Tobacco Farmer Talk (TFT) using statistics from the Tobacco Industry and Marketing Board (TIMB) show that ZLT accounted for 16 percent of all contract purchases as at September 10.
Statistics from the report show that ZLT bought 27 564 802 kilogrammes of the golden leaf at an average price of US$3, 13 per kg from the small-scale sector thereby injecting US$86 277 830 into farmers’ pockets and contributing 19 percent of sales from the sector.
ZLT, however, came third in the commercial contract sector sales after purchasing 7 802 931kg (11 percent) from this division at an average price of US$3, 97 per kg.
From both small-scale and commercial contract sectors, ZLT bought 35 367 733kg at an average price of US$3, 32 per kg with farmers grossing US$117 420 874.
Zimbabwe Tobacco Growers Association (ZTGA) chairman, Mr George Seremwe said farmers appreciated the role played by ZLT in improving their welfare.
“We appreciate ZLT. Their contracting system and relationship with farmers are fairly good. We implore them in the coming season to share their profits with farmers through offering high prices,” he said.
Tian Ze came second after purchasing 12 percent of all contract sales only from the commercial sector. They bought 25 067 305kg at an average price of US$3, 94 per kg.
ZLT, Mashonaland Tobacco Company (MTC), Atlas and Premium Leaf Zimbabwe (PLZ) accounted for 54 percent of all contract purchases from small-scale farmers, while Tian Ze and Northern Tobacco jointly bought 62 percent from the commercial section.
The top quartet of ZLT, Tian Ze, Northern Tobacco and MTC account for over half of all contract purchases.
Aqua, Bullion, Digital and Victory are among the licensed 37 growers who did not buy any tobacco this season. Efforts to get a comment from the four on why they did not yet participate this marketing season were fruitless by the time of going to press.
Meanwhile, statistics from TIMB’s Day 124 sales sheet shows that 13 885 298 kgs of the golden leaf was sold under the auction system grossing US$49 279 146 after getting an average price of US$3, 55 per kg.
A total of 217 875 324kg were sold under contract at an average price of US$3, 42 per kg earning farmers US$744 680 508.
The 2024/25 tobacco planting season officially kicked off on September 1 with 1 252 244 grammes of seed sold as at September 11 compared to 865 708 sold at the same time last year, reflecting a 45 percent increase.
Seed sold so far is enough to cover 208 707 hectares compared to last year’s 144 285ha. A record production is anticipated courtesy of the high seed sales.
The 2024/24 summer season production plan is targeting 288 million kg of tobacco with 93 percent coming from the contract system and seven from self-financing growers.
The Meteorological Service Department (MSD) has predicted normal to above-normal rainfall for the 2024/25 season due to La Nina and this will allow the country to recover from last season’s El Nino set back.
Online Reporter