Zimbabwe: Tobacco Deliveries Double in Two Weeks

Source from:  The Herald (Harare) May 22, 2006 05/25/2006

TOBACCO deliveries have doubled during the past two weeks with 2,9 million kilogrammes having gone under the hammer by end of business on last Wednesday. A fortnight ago, about 1,4 million kg had already been sold at the country's three auction floors -- Burley Marketing Zimbabwe, Tobacco Sales Floor and Zimbabwe Tobacco Auction Centre, according to figures compiled by the Tobacco Industry and Marketing Board. Deliveries have maintained an upward trend since the auction floors opened about four weeks ago, although the first week was characterised by protests over the new support scheme and low prices. Over the same period last year, about 2,8 million kg had been sold at an average price US$1,06 per kg. However, this year's seasonal average price currently stands at US$1,69 per kg, suggesting an improvement in quality. The wastage rate, or number of bales rejected, has, however, gone up from 8 percent to 12 percent from last week's figure. "Deliveries have continued to firm," said an industry expert, "and we hope farmers will continue delivering their produce." "Buyers are also paying competitive prices for good quality and far mers are quite happy." However, he encouraged farmers to start preparations for the next season as the country gears itself for enhanced tobacco production. "They (farmers) should not just wait until the last minute. "They should start purchasing some inputs before their money loses value. "We are living in a hyperinflationary environment and by the time they want to start buying inputs, the value of their money would have been eroded by inflation," the expert advised. Meanwhile, deliveries of cotton have also started picking up in recent weeks after merchants agreed to pay $37 000 per kg from $22 000 offered when the season commenced. Although no figures could be obtained, sources in the cotton industry said deliveries had "improved significantly". When the season opened early last month, some cotton farmers threatened to hold on to their crop in protest against low prices. Projections are that the country will produce about 300 000 tonnes of the "white gold" this year. Enditem