'Zimbabwe Set to Earn US$183m From Tobacco'

Source from:  herald.co.zw Business Reporters 09/25/2007

ZIMBABWE is expected to earn about US$183 million from tobacco this year, the Zimbabwe Tobacco Association has said. At least 80 million kilogrammes are expected to go under the hammer during the 2007 marketing season, earning Zimbabwe in excess of US$73 million more than last year's crop. Last year, the country raked in about US$110 million from the more than 55 million kg of flue- cured tobacco that went through the auction floors. So far more than 30 million kilogrammes of tobacco have been sold at an average US$2,24 per kg, realising a gross potential of US$66 million. About 50 million kilogrammes are still to be delivered to the auction floors. ZTA president Mr Andrew Ferreira attributed the anticipated growth in revenue to the favourable agronomic and climatic conditions in the region. However, poor marketing techniques by resettled farmers compromised earnings in some instances. "This lack of grade differential led to compressed marketability and the lack of diversity of grades meant that niche markets were soon satisfied resulting in merchants holding surplus expensive tobacco. Mr Ferreira urged farmers to work with Government in putting in place all the requirements needed to keep the current production's momentum. He said prices at the tobacco auction floors have remained 15 percent firmer than elsewhere in the region which he attributed to the growing demand from the region. Zimbabwe's tobacco was in high demand because of its superior quality. As with other sectors of the economy, Mr Ferreira bemoaned the high inflationary environment which he said was eroding tobacco farmers' returns. Enditem