THE Tobacco Industry and Marketing Board (TIMB) has said more than 151 million kilogrammes (kg) of tobacco valued at US$482 million has since been sold at the three auction floors since the start of the marketing season.
The sale of tobacco under the auction system commenced on February 18, while sales under the contract system began on February 19.
The statistics, released on Day 60 of the season indicate a 27 percent increase from sales during the period under review last year.
Last season during the same period, US$441 million was earned from 119 million kg.
According to the TIMB, the golden leaf average price prevailing at the markets is US$3,18 up from US$3,71 last year.
Statistics indicate that Tobacco Sales Floor (TSF) tops the list with the highest number of sales having sold 21 million kg worth US$61 million at an average price of US$2,89 per kg.
Premier Tobacco Auction Floors has sold 10,8 million kg worth US$29 million at an average price of US$2,69 and Boka Tobacco Auction Floors has sold 10 million kg valued at US$27 million at an average price US$2,66 per kg.
The board indicates that 109 million kg valued at US$364 million have been sold under the contract system at an average price of US$3,26.
Growers have expressed mixed feelings over the prices being offered by buyers.
Farmers continue to deliver the cash crop in high volumes to the three licensed floors, with some still curing the crop and a considerable number of small-scale farmers are yet to deliver.
Zimbabwe Commercial Farmers Union (ZCFU) president, Wonder Chabikwa said growers should continue working on improving the quality of the golden leaf to ensure they get favourable prices.
“Every tobacco farmer has the potential to sell their crop at favourable prices and this can be achieved by improving on quality,” Chabikwa said.
“By improving on quality and quantity, the farmer and the country both benefit.”
The marketing of tobacco, Chabikwa said, is different from that of other crops hence farmers should familiarise themselves with the system.
“Farmers should adhere to the marketing regulations of the crop,” he said.
“They should know the various reasons why bales are rejected at the floors and try to avoid that.
“It is also important for farmers to be aware that they have a right to recall a sale of their crop if they are not satisfied with the price offered by the buyer on that day.”
An average of 300 bales is rejected daily at the three auction floors.
According to information gathered by The Patriot any tobacco that is contaminated with fuel will be withdrawn and growers should ensure that no foreign matter is in the bale.
Tobacco should be free of floor sweepings, grading tickets, pieces of string, grass, newspaper and any other foreign matter
Bales are also rejected because of nesting, which is hiding inferior tobacco.
No attempt should be made by growers to hide inferior tobacco.
When high humidity is experienced, growers should ensure tobacco is in good keeping condition and not over conditioned as this may lead to mould.
Tobacco production, a former preserve of white farmers, has grown over the years with production levels rising from an all-time low of 48,8 million kg in 2008 to 60 million kg in 2009.
The sector was buoyed by adoption of multiple currencies and favourable prices.
The number of tobacco growers in the country has increased dramatically over the last decade from 8 500 to 97 560 this season.
The increase in growers translates to the increased demand for knowledge by new growers who are not familiar with the regulations guiding tobacco production and marketing.
Tobacco is one of Zimbabwe’s major agricultural exports, accounting for 10,7 percent of Gross Domestic Product.
The sector accounts for 40 percent of exports and supplies 63 percent of raw materials for agro-industries.
Nearly 98 percent of the locally produced crop is exported, while locally produced tobacco is popular for its high quality and competitive flavour.
Local tobacco has remained popular on the international market despite spirited efforts by the West to tarnish the image of indigenous farmers who are now the chief producers of the crop after benefiting from the highly successful Land Reform Programme.
The programme saw over 400 000 black households acquiring land. Before the land reform exercise in 2000, about 4 000 white farmers occupied the country’s prime land.
Zimbabwe now exports about 98 percent of semi-finished tobacco products, with the rest being consumed locally.
Countries such as China, United Kingdom, the United Arab Emirates, Indonesia, Germany and Belgium are some of the importers.
In Africa, Zimbabwe’s tobacco is sold to South Africa, Angola, Malawi, Tanzania, Lesotho, Botswana and the Democratic Republic of Congo.