Zimbabwe: Tobacco Earns $206,8 Million in 2006 As Output Rises

Source from:  The Herald (Harare) January 4, 2007 01/05/2007

THERE was a marginal increase in tobacco exports last year with about US$206,8 million having been earned from the sale of 67,6 million kilogrammes, up from US$203,5 million realised during 2005 from a total of 64,4 million kg exported. The Tobacco Industry and Marketing Board said a total of 66,7 million kg of flue-cured tobacco, the most popular variety, were sold to the world various market, raking in US$204,3 million. Close to 1 million kg of burley tobacco was sold, earning the country US$447,025. The average price for burley was US$2,61 during the course of 2006 while flue-cured tobacco was sold at an average price of US$3,06 during the same period. Export volumes have been on a sharp increase since the month of August, a clear indication of the replenished stocks. They rose from the July's figure of US$3,2 million to US$32,6 million in November. The upward trend could be witnessed until April next year when the 2007 selling season begins. As most of the exported tobacco is semi-processed, it fetches significantly higher prices than that offered to growers at the auction floors. Zimbabwean tobacco finds its way to several markets across the globe, including the European Union, Middle East, Asia and Africa. Locally produced tobacco is in great demand throughout the world because of its unique blending quality, thanks to the ideal local climate conditions which enable the leaf to burn continuously, thus making it popular with top cigarettes manufactures. Tobacco production has been in sharp decline since 2000 when output took a dip. In 2000, Zimbabwe produced 210 million kg, the highest ever achieved in the history of the country. But only 54 million kg were realised this year with production expected to rise to 100 million kg during the 2006/07 season. Enditem