Zimbabwe: U.S. $108 Million Tobacco Goes Under Hammer

Source from:  Zimbabwe Independent (Harare) 13 July 2007 07/16/2007

A TOTAL of 46,6 million kg of flue-cured tobacco valued at US$108 million (about $26,9 billion at the interbank rate) have gone under the hammer at the country's three auction floors on day 53 since the beginning of the selling season on April 24. The sales are 33,4 million kg less than the 80 million kg projected this year with about two months of trade left. Figures obtained from the Tobacco Industry and Marketing Board (TIMB) yesterday revealed that the deliveries were 61,43% more than the 28,8 million which were sold at the same period last year. In monetary terms last year's sales for the same period were 374,25% less at US$56,2 million ($5,6 billion) in Zimbabwe dollar terms due to hyperinflation. Inflation which is currently at 4 530% for May was 1193,5% during the corresponding period last year. A total of 513 031 bails have gone under the hummer so far compared to 339 509 last year a 51,11% increase the TIMB said. Of Zimbabwe's three auction floors, Burley Marketing Zimbabwe (BMZ) has sold 6,1 million kg worth US$14,4 million ($3,6 billion). Tobacco Sales Floor (TSF) sold 6,6 million kg valued at US$14,4 million ($3,6 billion). Zimbabwe Industry Tobacco Auction Centre (ZITAC) accounted for 5,8 million kg worth US$13,9 million ($5,8 billion). Contract tobacco farmers have so far sold 27,9 million kg valued at US$64,2 million ($16 billion). The current season has also witnessed an increase in the selling price that has averaged US$2,32c compared to US$1,94c 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 4,14%, 47,15% less than 7,83% recorded during the same period 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. Government has so far disbursed a support price of $2,8 trillion compared to $1,9 billion. Year Output Year Output (million kgs) (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 - 55 553 1993 204 790 2007 Projection 80 000 Total output of tobacco since 1980 Enditem