THE Tobacco Industry and Marketing Board (TIMB) says more than 71,6 million kilogrammes (kg) of tobacco valued at US$218 million has been sold at the country’s three auction floors since the start of the marketing season up to Wednesady this week.
The statistics, released on Day 26 of the season indicate a 26 percent increase compared to same period last year.
Last season, during the same period, US$153 million was earned after the sale of 57 million kg.
According to the board, the golden leaf’s average price prevailing at the floors is US$3,05 up from US$2,69 last year.
Statistics indicate that Tobacco Sales Floor (TSF) tops the list with the highest number of sales at 35,6 million kg worth US$112 million at an average price of US$3,14 per kg.
Premier Tobacco Auction Floors has sold 19 million kg worth US$60 million at an average price of US$3,14.
Boka Tobacco Auction Floors has sold 16,9 million kg valued at US$47 million at an average price of US$2,77 per kg.
The TIMB says 28,4 million kg valued at US$83 million have been sold under the contract system at an average price of US$2,92.
Locally produced tobacco remains in demand because of its unique flavour and is mostly used for blending.
The tobacco production sub-sector, a former preserve of white farmers, has grown over the years with production levels rising.
Tobacco contributes 20 percent of the gross domestic product.
The sector accounts for 40 percent of exports and supplies 63 percent of raw materials for agro industries.
The country exports 98 percent of semi-finished tobacco products, with the rest being consumed locally.
Efforts continue to be made to ensure tobacco growers benefit from producing the crop.
The marketing of the golden leaf has become synonymous with price wars between buyers and growers.
Growers contend buyers are ripping them off while buyers argue prices are in line with crop’s quality.
Experts have said if growers expect favourable prices, caution should be taken from production to curing.
How a farmer treats the crop from the field to the barn determines the end product and price
Last year, farmers boycotted selling their crop demanding a review of the prices arguing merchants were deliberately under-pricing their crop.
The tobacco cycle starts in June when farmers prepare their seedbeds.
In September, planting begins mainly for farmers who irrigate their crop.
Those who depend on rainfall continue to manage seedbeds and nurseries waiting for the onset of rains.
It takes an average 90 days before the crop matures.
Harvesting starts in December and marketing traditionally begins in February.
Last season’s marketing was delayed as rains were received late and most farmers were behind schedule.
Last year, changes were made to the payment system with the hope of improving operations of farmers and these have helped cushion farmers from the ‘cash crisis.’
Under new regulations by TIMB and the Reserve Bank of Zimbabwe, farmers were required to be paid through their banks in order to encourage savings and foster financial inclusion.
This required all farmers to have bank accounts.
In the past, it was only mandatory for contract farmers to have bank accounts.
Past marketing seasons were also characterised by congestion, with some farmers having to spend days and weeks camped outside floors without having sold their crop.
Auction floors blamed farmers for not following the correct marketing procedure of having to book their crop first and being in possession of a grower’s number.
This has resulted in the eroding of the farmers’ premium as they spend days at the auction floors before their crop is sold.
As if the pricing issue is not enough to cause ‘headaches’ for some farmers, they too have to be on the lookout for some unruly elements who cash in on the unsuspecting farmers.