Tobacco Marketing Season Likely to be Extended: TIMB

Source from:  herald.co.zw 09/06/2007

The Tobacco Industry and Marketing Board said yesterday this year's tobacco marketing season, due to end on Friday, is likely to be extended as there are some farmers still to start selling their crop. TIMB acting chief executive Dr Andrew Matibiri told New Ziana that quite a number of farmers experienced logistical problems that hindered them from selling their crop on time. "There are some farmers who are yet to sell their crop," said Dr Matibiri. "Some were busy removing maize from the fields and selling potatoes, while others faced challenges because of electricity, labour and diesel shortages." Dr Matibiri said the marketing season would have to be extended if deliveries remained strong. "We will only arrange clean-up sales towards the end of September to beginning of October," he said, adding an estimated 77 million kilogrammes of tobacco, slightly down from the initial target of 80 million kg, would be sold this year. He described the 2007 marketing season as successful and, unlike preceding years, had proceeded smoothly. Dr Matibiri applauded the Reserve Bank of Zimbabwe for introducing a support price, saying it induced viability in the sector, which has, in recent years, witnessed a sharp decline in production levels. He said the industry was targeting to increase production to 120 million kg next year, following the purchase of seed enough to cover 95 000 hectares. Meanwhile, a total of 67,2 million kg of tobacco worth US$158 million had been sold by Friday last week at an average price of US$2,35 per kg. This is compared to 53 million kg worth US$106,8 million sold at an average price of US$2,01 per kg over the comparable period last year. The support price for this year stood at $62 678 per kg, compared to $579,76 per kg last year. Government has also so far paid $4,2 trillion in support price to growers, compared to $14,4 billion last year. This year's wastage rate stood at 4,35 percent, significantly lower than last year's 7,96 percent. Despite a marked decline from a peak production of 231 million kg in 2000, tobacco remains one of the country's top foreign currency earners. Enditem