Zimbabwe: Tobacco Deliveries Near 80 Million KG Target

Source from:  The Herald (Harare) 29 August 2007 08/30/2007

WITH barely two weeks to go before the end of the tobacco marketing season, deliveries are clawing towards the targeted 80 million kilogrammes. At least 65 million kg had been delivered to the country's three auction floors by the end of last week. As of Friday, a total of 65 045 836 had been delivered to the floors since the beginning of the marketing season although daily deliveries which had been buoyant in May, June and partly July when they averaged 1,2 million kg, had slid to below 500 000 kg per day. The 65 million kg, which is higher than last year's 48,4 million kg over the same period, fetched US$ 152,8 million, a figure that is above US$98,1 million for last year. The Reserve Bank of Zimbabwe last month reviewed the tobacco top up price to $55 000 per kg from $40 000, calculated on a pro-rata basis benchmarked on US$1,50 per kg. Growers have so far received $4 trillion under the support price scheme. Tobacco has so far been sold at an average price of US$2,34 per kg, up from US$2,02 per kg last year. On Friday alone, about 352 000 kg were sold at the three auction floors with farmers realising US$871 946 and $23,2 billion in Government support price at an average price of US$2,47 per kg. The support price facility was introduced last season to encourage tobacco deliveries to the auction floors and to avoid a repeat of stalemates in past seasons when farmers refused to deliver the golden leaf in protest over "low" prices. The 2007 flue-cured tobacco marketing season will close on September 7. Tobacco Industry Marketing Board acting chief executive Dr Andrew Matibiri, who announced the date said the floors would be allowed to accept final deliveries on September 6, a day before the closing date. Farmers were expected to complete their grading and baling operations by August 31 in view of the date for the last day of the season. Enditem