Zimbabwe: 6m Kg Tobacco Auctioned

Source from:  Zimbabwe Independent (Harare) 18 May 2007 05/22/2007

AT Least 6, 35 million kg of flue-cured tobacco valued at US$11,7 million (about $2,9 billion at the interbank rate) have gone under the hammer at the country's three auction floors since the beginning of the selling season on April 24. Figures obtained from the Tobacco Industry and Marketing Board (TIMB) yesterday revealed that the deliveries were 83,25% more than the 3, 46 million which went under the hammer during the first two weeks of trade last year. In monetary terms last year's sales for the same period were 416,42% less at $567,3 million in Zimbabwe dollar terms due to hyperinflation. Inflation which is currently at 3 714,2% for April was 1092% during the same period last year. In US dollars terms the value of tobacco sold is US$11,7 million, 102,43% more than US$5,7 million sold during the same period last year. A total of 68 371 bails have gone under the hummer so far from, 88,12%% more than 36 345 which were sold during the corresponding period last year, the TIMB said. Of Zimbabwe's three auction floors, Burley Marketing Zimbabwe (BMZ) has sold 979 974 kg worth US$1,9 million ($477,5 million). Tobacco Sales Floor (TSF) sold 853 200 kg valued at US$1,7 million ($425,7 million). Zimbabwe Industry Tobacco Auction Centre (ZITAC) accounted for 568 484 kg worth US$1,1 million ($281,7 million). Contract tobacco farmers accounted for 3,9 million kgs valued at US$6,9 million ($1,7 billion). The current season has also witnessed an increase in the selling price that has averaged US$1,78c compared to US$1,45c which prevailed during the corresponding period last year. The increase in the selling price has been attributed to a better quality crop on offer compared to last year and an attractive special exchange rate. Last year's crop was affected by low rainfall and late planting which resulted to the leaf fetching lower prices. The waste percentage during the period under review is 3,98%. It is 44,87% less than 7,23% recorded during the same period last year. A total of 80 million kgs of the golden leaf is expected to gone under the hammer by the close of the season. A total of 55,5 million kg was sold last year. Over the last few years, production of the crop has been on the decline owing to recurrent droughts and unavailability of essential inputs. Tobacco production declined by 76% last year from an all time high of 237 million kg which was sold in 2000. Year Production (million kgs) Year Production (million kgs) 1980 125 038 1994 182 466 1981 71 812 1995 198 380 1982 90 602 1996 208 716 1983 98 956 1997 215 369 1984 124 872 1998 215 000 1985 107 957 1999 193 183 1986 116 456 2000 236 130 1987 121 320 2001 202 540 1988 114 736 2002 165 842 1989 130 361 2003 81 812 1990 130 394 2004 69 112 1991 178 565 2005 73 392 1992 211 394 2006 55 533 1993 204 790 2007 Projection 80 000 Total production of tobacco since 1980 Enditem