Zimbabwe: Tobacco Rakes in U.S.$100 Million

Source from:  The Herald (Harare) 13 July 2007 07/16/2007

MORE than US$100 million have so far been realised from tobacco sales as deliveries at the country's three auction floors remain strong. According to figures made available by the Tobacco Industry and Marketing Board, a total of US$109 million had been realised by end of day on Tuesday (Day 53 of trade at the auction floors). This represented a 92 percent increase from the US$56 million realised over the corresponding trading period last year. A top foreign currency earner, the tobacco crop raked in US$110,7 million in foreign currency last year but the figures are expected to almost double this year as prices on the international market continue to firm. Daily averages of about 1 200kg have been registered so far compared to last year's 220kg as the selling season lurches towards the halfway mark. The above average deliveries have been spurred by Government support price, which is pegged at $40 000 for every kilogramme of high quality tobacco that fetches above US$1,50 per kg and on a pro-rata basis for inferior quality. So far the Government has paid a total of $2,9 trillion under the support scheme. The Government, through the central bank, introduced the support price facility in April this year to encourage tobacco growers to deliver the "golden leaf". Stakeholders in the sector were confident that prices would continue to firm while the trend would be maintained, thanks to the excellent quality crop produced this year. Tobacco Growers' Trust president Mr Wilfanos Mashingaidze said he was elated by the continued firming in deliveries as they were a clear indication that indigenous farmers had come of age. "The prices at the auction floors coupled with the continued firm deliveries is a clear indication that our indigenous farmers are fast learning the ropes. Information to our new farmers should be increased so that the country's tobacco continues to fetch better prices and appreciation on the international market. "I would like to urge the private sector to pool their resources together with Government to ensure that not only the next tobacco season is successful, but that the whole agriculture sector turns around tobacco production from the current target of 80 million to 100 million kilogrammes next year," he said. Despite losing its glow in recent years due to a combination of factors such as drought and late disbursement of inputs, tobacco remains one of the country's foreign currency cash cows. Recently Government guaranteed its continued support for the tobacco industry by ensuring the timely disbursement of inputs, extension services and financing. A number of initiatives and training options have also been put in place to ensure farmers improve the quality and quantity of the crop delivered to the auction floors. Enditem