Firm Prices Improve Tobacco Earnings

Source from:  herald.co.zw New Ziana. 08/23/2006

FIRM prices have seen Zimbabwe's earnings from tobacco surpass last year's foreign currency earnings by 21,98 percent despite a decline in crop deliveries. Statistics released by the Tobacco Industry and Marketing Board on Tuesday show that a total of 46,4 million kilogrammes of tobacco worth US$93,8 million had been sold by Friday last week, compared with 49,4 million kg worth US$76,9 million sold during the same period last year. Firm prices due to high quality crop pushed up earnings for a crop that is smaller when compared to last year. The golden leaf fetched an average price of US 2,01 cents per kg this year compared to US$1,55 cents last year. Out of the 46,4 million kg sold so far, 20,8 million kg were sold through the auction system while 25,6 million was sold through the contract system. The golden leaf sold through the auction fetched an average price of US 1,91 cents per kg, less than US 2,10 cents that prevailed for sales done through the contract system. The wastage rate for action sales at 12,05 percent was much higher than 3,53 percent for contract sales. Overally, the sales recorded an 8,23 percent wastage rate for 2006 compared to 8,46 percent in 2005. Tobacco with mixed hands recorded the highest rejection rate of 3,68 percent, followed by mouldy tobacco with 2,14 percent and withdrawals, which accounted for 1,35 percent. Bales laid by that date stood at 598 and those sold at 546. An estimated crop of 50 million kg is expected to go under the hammer this year, compared with 70 million sold last year. Tobacco is one of the country's major foreign currency earners. Enditem