Inflation Threatens Grower Viability

Source from:  tobaccoreporter.com Zimbabwe, July 6, 2007 07/09/2007

Zimbabwean tobacco farmers have asked the government to provide production incentives for the 2007/08 season that will factor in the inflationary trends that have seen the pre-season estimate cost of production jumping from about Z$40 million to Z$900 million per hectare, reports The Herald. Officially, the Zimbabwe dollar-U.S. dollar exchange rate is 250 to 1. On the black market, however, the local currency is worth only a fraction of that. Zimbabwe Commercial Farmers' Union president Wilson Nyabonda said the tobacco sector had pegged the cost of production at Z$40 million per hectare at the beginning of their preparations but his had already been eroded. "We estimate that our farmers will have to fork out between Z$700 million and Z$900 million per hectare, hence there is a need for all stakeholders involved in the production of the golden leaf to come together and map a way forward that will ensure viability in the sector," he said. Zimbabwe Farmers' Union vice-president Edward Raradza said it was imperative to find a permanent solution to the availability of inputs at affordable prices. Enditem