Zimbabwe: Tobacco Deliveries Near Set Target

Source from:  The Herald (Harare) 14 September 2007 09/17/2007

Tobacco deliveries to the country's three auction floors have climbed to within reach of the 77 million kilogrammes target set by the Tobacco Industry and Marketing Board. As of Tuesday a total of 70,1 million kg had gone under the hammer since the beginning of the selling season, representing a 27,7 percent jump from last year's 54,9 million kg. At least 680 423kg were sold on the last day of the selling season on Friday last week, bringing the total for the season to 69,5 million kg. At least 140 837 kg were sold on the last day of the season last year. A combined total of 647 370kg were sold on Monday and Tuesday, to clear deliveries that were made on Friday but remained unsold by the close of the selling season. Tobacco farmers believe that the target is achievable in view of the mop-up sales scheduled for September 25-29. "The target is still within reach because there is still some tobacco left and if it is all brought in we will get to the target," said one of the farmers. As of Tuesday a total of $5,1 trillion had been paid out as Government support against the sale of the 70,1 million kg, way above the $14,4 billion for last year. The 70,1 million kg, which were sold at an average price of US$2,34 per kg, earned the country US$164,3 million, representing a 50,1 percent jump from last year's figure of US$109,4 million. The tobacco selling season, which started on an indifferent note on April 24, turned out to be a resounding success after Government announced a series of incentives, underpinned by a support price. The initial support price was $40 000 for every kilogramme of tobacco that fetched US$1,50 with payments for inferior quality tobacco being calculated on a pro-rata basis. At the close of the season, the support price was pegged at $550 000 per kg calculated on a pro-rata basis benchmarked on US$1,50 per kilogramme. The support price and firming prices saw deliveries surging by more than 100 percent in June and July before slowing down last month as the marketing season entered the home stretch. Enditem