Zimbabwe: Tobacco Sales Up

Source from:  Zimbabwe Standard (Harare) 5 August 2007 08/07/2007

A total of 57.3 million kg of flue-cured tobacco valued at US$134.6 million were sold at the country's three auction floors, according to figures obtained from the Tobacco Industry and Marketing Board (TIMB) last week. The figures show that on the 68th day of trade last Tuesday, since the selling season began on 24 April, the new figures are higher than last season's total sales of 55.5 million kg, six weeks before the season comes ends in September. Of the three auction floors, Burley Marketing Zimbabwe had sold 7.69 million kgs valued at US$18.366 million; Tobacco Sales Floor had sold 8.4 million kgs valued US$20.3million; Zimbabwe Industry Tobacco Auction Centre has so far sold 7 million kgs with a value of US$17.2 million; and contract tobacco farmers have 34 million kgs with a value of US$78.66 million. The selling season has also seen an increase in the price, which averaged US$2.34 from US$1.96 in the previous season. Industry experts say the increase in the tobacco support price to $55 000 per kg from the initial $40 000 is meant to lure farmers to sell the crop as the nation braces to achieve the 80 million kgs target set at the beginning of the season. Central bank governor Gideon Gono last week said the top-up benefit would be made on a pro rata basis with every kilogramme that fetches US$1.50 receiving $55 000 as top-up. Dubbed the golden leaf, Zimbabwe's tobacco output has plummeted over the years to 55.5 million kgs last year from a peak output of 236 million kgs in 2000. The tobacco output has been on a free fall since the government embarked on a controversial, violent land reform programme in 2000. The new breed of farmers that took over vast tracts lacked the skills and capital to engage in successful tobacco farming. Enditem