Zimbabwe: Tobacco Set to Fall Below Anticipated Output

Source from:  Zimbabwe Independent (Harare) 20 July 2007 07/24/2007

TOBACCO sales will fall short of the projected total output of 80 million kg by nearly 10 million kg if average daily sales of 485 000kg continue with about 37 days of official trade left. Figures obtained from the Tobacco Industry and Marketing Board (TIMB) yesterday showed that a total 50,4 million kg valued at US$117 million (about $29,3 billion at the interbank rate) had gone under the hammer as at July 18. Farmers this week said if the average daily sales were maintained until the close of the auction floors which are traditionally during the first week of September, a total of about 68,3 million kg would have been sold. Auction floors are usually extended by about two weeks to accommodate late deliveries. If sales during the two weeks are included using the same average sales, about 73,1 million kg would have been sold for the 2007 selling season. The figures also showed that Tobacco Sales Floor (TSF) auction floors have so far handled the largest volume of tobacco, with about 7,3 million kg of tobacco valued at US$ 17 million going under the harmer as at July 18. Burley Marketing Zimbabwe (BMZ) auction floors are second with sales of 6,8 million kg valued at US$16,1 million while Zimbabwe Tobacco Auction Centre (Zitac) accounts for the lowest volume of tobacco sales at 6,3 million kg valued at US$15,3 million. Zitac usually caters for large scale tobacco farmers, while TSF mainly accommodates smallholder farmers. BMZ attracts medium- to large-scale tobacco growers. Contract farmers accounted for 29 million kg valued at US$68,7 million. This year's tobacco auction started on a low note with farmers unhappy with prices merchants were offering. Although amount being offered was satisfactory, farmers were also unhappy with the late payments which have resulted to some staying at the auction floors for nearly three weeks. Meanwhile a total of 52 213 kg of burley tobacco valued at US$88 000 (about $22 million at the interbank rate) have been delivered to BMZ auction floor the country's sole buyer of burley tobacco. The deliveries are 88 027 kg less that 140 240 kg archived during the same period last year. Enditem