PROTESTING farmers; singing “povho yaramba zvemadhisinyongoro!” pushing and shoving each other hoping to get a ‘piece’ of the tobacco merchants, are the ugly scenes that characterised the opening day of the 2015 tobacco marketing season.
The tobacco marketing season started on Wednesday.
The situation was the same at the three licensed auction floors and as a result of the commotion sales for the day were suspended.
Most farmers recalled the sale of their crop as they were disgruntled by the prices offered by buyers.
The first bale sold at Boka Auction Floors where the official opening ceremony was held was priced at US$3,50 per kilogramme (kg).
For the other bales sold before the suspension of sales, no bales were sold above US$3,70 per kg with some fetching as low as US$0,60.
At Premium Auction Floors the highest priced bale was US$3,80 per kg with the lowest fetching US$0,10.
The price range was the same at Tobacco Sales Floor (TSF) with no bale sold above US$3,80.
Price disputes are not a new phenomenon when it comes to the marketing of the golden leaf and this has in the past disrupted the sale of the crop.
Farmers have threatened to withhold their crop.
They have blamed buyers for being cunning, wanting to reap where they did not sow and purposefully under-pricing their crops.
Merchants on the other hand defend their prices saying the quality of the crop plays a major role in determining the pricing system.
Are the farmers justified to demand ‘higher’ prices than those offered and are they really victims?
Do the farmers understand the marketing of the golden leaf?
Many had come to the floors expecting prices ranging from US$4 only to be disappointed as the merchants made them realise that ‘not all that glitters is gold.’
Karoi farmer, Collen Chabume whose crop was sold at US$0,80 per kg for his 90kg bale expressed concern over the prices.
“These prices are not fair as they do not ensure that the farmer breaks even,” he said.
“With the money I got from selling this bale I am not even able to pay the required US$100 to renew my growers’ number for the next season.
“If I then factor in the other costs such as transport and labour, I will be left with nothing and this means next season I will not go back to the fields.”
Another farmer, Murambiwa Urengwa from Hurungwe said there was a misconception on the part of farmers as we think the prices are determined and should be in tandem with the funds invested in producing the crop.
“Farmers should know that the price one will get is determined especially during the curing process because if you do not do it properly, you might end up with a poor quality crop,” he said.
“Some of my fellow farmers are complaining here, but if you look at their bales they are mixed hand (mixed grades) and buyers take advantage of this and put a lower price even if the quality is good.
“Personally despite having been affected by the rains, I am happy with the quality of the crop I produced and am not expecting anything less than US$3,50 per kg.”
Once a farmer produces a quality crop, TSF managing director James Mutambanesango said, one is guaranteed a fair price on the market.
“Some of the reasons why other bales are rejected or priced lower is because the farmer would have mixed different sized leafs or those of a different quality,” he said
“Farmers often complain over the prices that are offered by buyers, but sometimes the reasons for poor prices have to be addressed by the farmers.
“A quality tobacco leaf is long, soft to touch and it should be orange or lemon in colour.
“All these attributes show that efforts were made by the farmer to put adequate fertiliser, and also the crop was properly cured.”
Mutambanesango said farmers, especially those new to the sector not only required training on marketing, but also on curing and bailing.
The price disputes were also fuelled by the misconception by the farmers that the low prices were part of efforts by Government to distribute bond coins to the rural areas.
Farmers argued by pricing the crop at US$0,10 it meant it was easier for them to be given bond coins instead of the amount in foreign currency.
However, Mutambanesango said the marketing of tobacco, guaranteed the country of foreign currency injection.
“What happens during the marketing of tobacco is that every buyer has to have their own foreign currency they bring through the Reserve Bank which is then given to banks operating at the auction floors,” he said.
As the season progresses, it is hoped that the disputes would be settled and the marketing season proceeds smoothly.