Over 5 000 000kg Tobacco Sold so Far

Source from:  herald.co.zw Business Reporters  05/18/2007

A TOTAL of 5 383 999 kilogrammes of flue-cured tobacco worth $2 323 376 434 (US$9 613 506) were sold in the first 13 days of the tobacco marketing season that commenced three weeks ago. This year's figure is almost double the 2 583 819kg worth $429 502 305 of the "golden leaf" delivered during the corresponding period last year. In terms of US cents per kilogramme tobacco sales remained almost the same as last year with the average price ranging between US 168 cents and US 190 cents. Statistics compiled by the Tobacco Industry and Marketing Board on Tuesday revealed that deliveries to the floors have continued to firm with a total of 512 658kg valued at $244 104 584 going under the hammer on Friday last week compared to 107 584kg or$18 495 969 in monetary terms over last year's corresponding period. The figures, however, dropped on Monday to 306 247 kg valued at $160 997 384 although they were still higher than last year's. Friday's figures were almost double the quantity of tobacco delivered on Wednesday and Tuesday of the same week. Of the total deliveries to date, 2 million kg worth $967 401 368 (US$3 869 605) changed hands while 3,4 million kg valued at $1,4 billion (US$5 743 900) went under the hammer in the contract sales. Of the total deliveries to date Zitac has received 432 324kg, BMZ 823 377kg and TSF 754 242kg. BMZ continues to hold pole position, accounting for 16 percent, TSF 14 percent and Zitac 8 percent while contract sales take up the remainder. TIMB acting chief executive Dr Andrew Matibiri expressed optimism that this year would be better in terms of both quality and deliveries as more farmers gained experience in tobacco production, formerly a preserve of the whites. Meanwhile, the Reserve Bank of Zimbabwe has released over $4 billion to all auction floors to pay tobacco growers the bonuses carried over from last year. Presenting his Interim Monetary Policy Statement last month, RBZ Governor Dr Gideon Gono assured farmers that they would be paid their outstanding bonuses with immediate effect. However, the tobacco auction floors have not been making any payments while awaiting official communication and the release of the funds by the central bank. Dr Matibiri said as all the three auction floors had received the funds, farmers should approach their respective floors to get their bonuses. "This is a welcome development that is likely to boost tobacco production levels and it also shows Government's commitment to the sector and the revival of the entire agriculture sector," he said. Dr Matibiri urged tobacco farmers to deliver their crop early to get value for their money, taking into consideration the hyperinflationary environment prevailing in the country. "Farmers must also be reminded that they should start their preparations for the next farming season and ensure that by the first week of June the seedbeds should be laid," he added. He said the central bank had also revised modalities on the operations of the Foreign Currency Retention Scheme for the benefit of the farmers. "The central bank has also transferred the FCA scheme to the auction floors and farmers will have to open their foreign currency accounts and approach their respective auction floors for the processing of the accounts," said Dr Matibiri. Zimbabwe Tobacco Growers' Trust vice-president Mr Wilfanos Mashingaidze welcomed the move saying it underlined Government's commitment to the successful turnaround the agriculture sector. "Farmers are happy with the prices being offered by the tobacco auction floors and the decision to pay the outstanding bonus. This will allow farmers to claim their payouts at the same time with the cheques for this year's earnings. "I hope the change in guidelines governing the operation of FCAs will enable us to access the money to buy inputs in time for the next farming season," he said. He, however, bemoaned the wanton increase in input prices by some unscrupulous suppliers who he said were ripping off farmers. "Our only problem is the inaccessibility of inputs such as fertilizers and pesticides and the actions of some supplies who have been pricing inputs beyond the reach of farmers." Enditem