Zimbabwe: Tobacco Deliveries Maintain Upward Trend

Source from:  The Herald (Harare) June 12, 2006 06/15/2006

Tobacco deliveries last week maintained an upward trend with over 11,2 million kg worth US$20,5 million (about $2 trillion) going under the hammer. According to figures released by the Tobacco Marketing Board (TIMB), about 7,2 million kg had been sold under the auction system as at June 7. Of this, about 3,6 million kg had been sold at the Tobacco Sales Floor by that date. Burley Marketers Zimbabwe and Zimbabwe Tobacco Auction Centre accounted for 2,2 and 1,6 million kg respectively. The "golden leaf" was going at an average price US$1,82 per kg compared to US$1,15 last season, reflecting a positive 58,2 percent increase. Quality levels have remained positive as signalled by the smaller number of rejected bales. Of the 143 331 bales laid at the three auction floors, 130 957 had been sold leaving the rejection level at around 14,4 percent. Bales are rejected for a number of reasons, notably failure to comply with the stipulated size and poor handling. About $725 billion had been paid to farmers under the early delivery bonus which lapses on July 31, said TIMB. As the selling season entered its 26th day, deliveries have be en encouraging, marking probably the first time in five years that the selling season has proceeded without a major hitch. In previous years, the marketing seasons has been characterised by bickering between farmers and merchants over charges of low prices and poor quality. A potentially explosive standoff marked the first week of selling season when farmers mounted spirited resistance against the quality-oriented early delivery bonus. About 52 million kg are expected to go under the hammer this year, down from 74 million kg produced last year. Enditem