Least Tobacco Output Since Independence

Source from:  Zhean Gwaze Staff Reporter  09/15/2006

ZIMBABWE has sold its smallest tobacco crop since independence - 54,2 million kilogrammes - in the just-ended 2005/6 season, further compounding the country's foreign currency shortages. The final tally of the tobacco crop, the country's erstwhile premier foreign currency earner, could be slightly higher once mop-up sales due to take place on September 26 are taken into account, but indications are that no less than a million kgs will be realised from the exercise. About US$109 million had been generated from the season's sales by September 8, the day before the official close of the 2006 tobacco-selling season. Tobacco Industry and Marketing Board technical services director Andrew Matibiri said expected deliveries to the country's auction floors after the deadline were minimal. He blamed the poor deliveries on incessant power cuts, diesel shortages and labour shortage as many farmers were concentrating on the winter cropping season and tending tobacco seedlings for the 2006/7 season. "We expect just under three quarters of a million from the clean up sales," Matibiri said. The latest tobacco harvest continues a pattern of steady decline that began six years ago. The predicted 54.9 kgs attained will represent a further decline from the 80 million kgs sold last season against an earlier projection of 160 million kgs. The golden leaf, whose production peaked at 220 million kg in 2000, has slid year on year over the last six years; from 160 million kg in 2001/2, 85 million kg in 2002/03 and 68 million kg in 2004. A shortage of inputs, under capitalisation and the government's chaotic land reform programme have been blamed for the decline of the principal foreign currency earning commodity. The central bank has introduced a tobacco performance, research and development facility, which rewards growers for actual production in the 2006/07 production in a bid to reclaim viability to the sector but the shortage of inputs is the major impediment. Under the RBZ facility, growers will get an additional support of 65 percent of sale value of actual deliveries sold onto the auction floors and retain 15 percent in their FCA with no liquidation expiry time frame. Matibiri said farmers were 'more than enthusiastic' to produce a better crop next year but were mainly hampered by the shortage of inputs. TIMB said a total of 328 kg of flue cured tobacco seed has been sold, which is sufficient to cover 65 000 hectares and would, under normal circumstances, translate to 100 million kgs of tobacco. Zimbabwe's dwindling tobacco crop leaves the country with less hard currency to buy vital imported commodities such as fuel, grain and medicine. The government, without balance of payments support from the International Monetary Fund and other global lenders because of differences over policy and governance issues, is battling to import some of the critical national requirements. The bulk of Zimbabwe's tobacco is exported to Asia and the European Union. Enditem