Zimbabwe: Tobacco Production Target on Course

Source from:  The Herald (Harare) 11 October 2007 10/12/2007

Zimbabwe is on course to reach its production target for tobacco of 120 million kilogrammes for next year judging by seed sales so far. A total of 495 kilogrammes of tobacco seed has been sold to date. In his remarks during a luncheon to mark the end of the tobacco selling season yesterday, Tobacco Industry and Marketing Board chairman Mr Njodzi Machirori said if the seed is planted at the correct sowing rate of an average 6,5 gram per hectare it would cover over 75 000 hectares. The hectarage was expected to be sufficient for the country to achieve its targeted tobacco yield given the right climatic conditions, and that all the farmers needs are met and that all the seed are successfully transplanted. Speaking at the same occasion, Agriculture Minister Mr Rugare Gumbo said the target of 120 million kilogrammes was within sight and that his ministry was doing everything in its power to ensure that the target is achieved. The record tobacco seed sales have come at a time when various instruments and measures have been put in place to ensure that production increases. Tobacco farmers are already benefiting from the Reserve Bank of Zimbabwe's Agricultural Sector Productivity Enhancement Facility (Aspef) with over $286 billion having been disbursed under the tobacco facility as at end of the August. Reserve Bank Governor Dr Gideon Gono, who has declared this summer cropping season as "the mother of all agricultural seasons" recently slashed productive sector borrowing rates by half to 25 percent, to encourage increased production. Dr Gono also increased the Foreign Currency Account retention allowances for tobacco growers from the current 20 percent to 25 percent for next year. The governor also indicated that the central bank would continue to support tobacco growers through delivery bonus schemes that reflect not only production costs but also reasonable allowance for favourable profit returns to farmers. During the just-ended selling season, tobacco farmers benefited from a Government support price of $40 000 per kg, calculated on a pro-rata basis benchmarked on US$1,50 per kg. The support price was later revised to $55 000 per kg towards the end of the season. In addition, a number of tobacco farmers have already benefited from the Farm Mechanisation Programme through the provision of an assortment of farm machinery such as tractors, ploughs, disc harrows, boom sprayers and irrigation equipment among others. Tobacco farmers are also benefiting from a fuel facility that was created by the Government through the Reserve Bank to enable farmers to access cheap fuel for their activities. At least nine companies have poured trillions of dollars in support of contract farming in tobacco. These include Alliance One, Chidziva Tobacco Processors, Gold Driven Investments, Tian Ze Tobacco company, Zesa Enterprises, Zimba-bwe Leaf Tobacco Company, Zimba-bwe Tobacco Growing Company, Mannelie Investment and Saltlakes. The support was in the form of chemicals and inputs after the Government took a deliberate approach to initiate contract farming and sales as a way of removing the burden of financing the farmers on its own. Contract farming has proved to be a viable way of supporting farmers since 40 percent of the inputs for last year's crop, which covered 52 000 hectares, came from this source. TIMB is disbursing more than $5 billion to Model A1 and communal tobacco farmers for the purchase of inputs under its input credit scheme for the coming season. The Government was also purchasing generators for tobacco farmers as a way of mitigating the effects of power cuts on planting activities. Despite a fall in tobacco output to a 30 year-low of 55,5 million kg last year, Zimbabwe's tobacco has remained one of the most sought after crops the world over. During the launch of the second phase of the Mechanisation Progra-mme, President Mugabe said Zimbabwean tobacco was so good that agents from countries that had imposed sanctions on Zimbabwe were flocking to the country's auction floors to buy the crop. A subsequent rebound from the 55,5 million kg to about 77 million kg for this year has put Zimbabwe in a good stead to regain lost ground and its position as one of the world's leading tobacco growers. Enditem