Zimbabwe: Fresh Problems Dog Tobacco Deliveries

Source from:  Financial Gazette (Harare) 26 July 2007 07/27/2007

TOBACCO deliveries to Zimbabwe's auction floors slumped from 1 million kilogrammes to 700 000 kilogrammes in the past week owing to operational challenges, The Financial Gazette established this week. Tobacco Industry and Marketing Board chief executive officer Andrew Matibiri said although prices remained firm, deliveries slowed down because of shortages of fuel, incessant power cuts and the shortage of tobacco wrapping paper. The season's average selling price remained at US$2.32 per kilogramme. This year's average selling price has increased by 20 percent from last year's US$1.92 per kilogramme. "There has been a shortage of wrapping paper supplied by Hunyani Paper and Packaging because of failure to get the import component on the paper. However, diesel and frequent power cuts have been a major challenge," Matibiri said. ZESA Holdings has increased load shedding due to reduced power generation at Hwange Power Station caused by limited coal deliveries following a series of breakdowns at Hwange Colliery Company Limited, the country's sole supplier of coal. Deliveries are around 56 million kilogrammes although the season is expected to end at 80 million kilogrammes when it closes in September. The latest tobacco harvest is a slight departure from a previous pattern of steady decline in crop output that began seven years ago. The predicted 80 million kilogrammes will represent a slight rise from the 55 million kilogrammes sold last season. The golden leaf, which enjoyed a peak of over 200 million kg in 2000, has slid year after year over the last six years to 160 million kg in 2001/2, 85 million kg in 2002/03 to 68 million kg in 2004. A shortage of inputs, under capitalisation and the government's chaotic land reform programme have been blamed for the output decline of a crop that was once the country's key foreign currency earner. Matibiri said farmers continued to be enthusiastic and were already working on their seedbeds for the next season's crop. Enditem