Zimbabwe: Tobacco Exports Rake in US $89,1 Million

Source from:  The Herald (Harare) July 10, 2006 07/11/2006

TOBACCO exports raked in a total of US$89,1 million during the first half of the year. Flue-cured tobacco, the country's most popular variety, accounted for the bulk of exports, netting US$88 million while burley tobacco brought in US$438 000. Over 380 000kg of flue-cured tobacco were exported over the past six months, at an average price of US$2,88 per kg. Burley was selling at an average of US$2,32 per kg, with a total of 206 000 kg finding its way onto the export market. Zimbabwe exports semi-processed tobacco to the European Union, the Middle East, the Far East, Oceania and the Americas. Most of the exported tobacco fetches significantly higher prices than those offered to growers at the auction floors where raw tobacco is sold. Despite declining production, the "golden leaf" remains the country's major foreign currency earner. The March figure of US$29 million is the highest recorded in a single month during the period under review. April and May recorded US$3,4 million and US$6,5 million respectively while the June figure came in at US$3,2 million. Exports are expected to pick up in the next few months when merchants start exporting the crop currently being delivered to the auction floors. Tobacco production has been declining in the last five seasons from over 200 million kg in 2000 to about 74 million kg last year. Most of the problems in tobacco have been blamed on the late disbursement of inputs, erratic fuel supplies and recurrent droughts. Enditem