$15 Million Tobacco Sold at Auction floors

Source from:  tobaccoreporter.com Zimbabwe, Tuesday, May 22, 2007  05/25/2007

A total of 9.5 million kilograms of tobacco worth $15 million USD has been sold on three auction floors since the start of the selling season four weeks ago, with prices firming from $1.75 USD a kilogram to $1.95. The report was from Business Reporter magazine. "Farmers are very happy with the move taken by the Government and since the beginning of May, deliveries have significantly picked up. Prices have also been very good, averaging US$1.95 per kg compared to US$1.72 per kg during the same time last year," said Tobacco Industry Marketing Board chief executive Dr. Andrew Matibiri in a telephone interview. He attributed the upsurge in deliveries to a clutch of new incentives announced by the Government last month. For example, tobacco growers are now entitled to a support price of $40,000 for every kg of tobacco that fetches US$1.50. Any crop that fetches below US$1.50 or above would attract a support price calculated pro-rata to the $40,000 per kg. All three tobacco auction floors have started paying farmers the incentives after the Reserve Bank of Zimbabwe last week released $4 billion for the 54 million kilograms of the golden leaf delivered last year. Dr. Matibiri said the tobacco industry welcomed the policies unveiled by the central bank to boost production. Tobacco output has fallen from an all-time high of 220 million kilograms in 2000 to a projected 80 million kilograms this year. Zimbabwe Tobacco Growers Trust vice-president Mr. Wilfanos Mashingaidze said growers were committed to increasing production. "The growers are satisfied with everything going on so far and if this trend continues we are likely to witness a situation whereby the country will regain its status as one of the top three tobacco producing nations in the world," he said. "In order to ensure that tobacco growers return to the fields in the 2007/08 season, the Government and the RBZ have introduced special facilities on foreign currency retention. Zimbabwe government pays $256 billion as tobacco support price Zimbabwe, Monday, May 21, 2007 - Government has so far paid out $256,4 billion as tobacco support price to growers since the marketing season began last month. According to a report in the Zimbabwe Herald. According to statistics released by the Tobacco Industry and Marketing Board on Wednesday, this represents a vast increase from the $150.3 million the Government paid out to growers over the same period last year. Enditem