Zimbabwe: Tobacco Output Seen Lower This Year

Source from:  Financial Gazette (Harare) 17 January 2008 01/18/2008

ZIMBABWE'S economic recovery prospects faded this week following projections of yet another dismal tobacco season. In yet another blow to government, the Zimbabwe Tobacco Association (ZTA) projected that this year's tobacco crop would plummet after last year's rebound, owing to challenges ranging from input shortages and a sudden shift by some farmers into the production of less capital-intensive crops. The ZTA said tobacco production, which rebounded to 73 million kgs and raked an estimated US$170 million last year, would tumble below 70 million kilogrammes this year. Andrew Ferreira, the ZTA president, said the irrigated tobacco crop had been affected by last year's water shortages while the current wet season would affect average yields for the dry land tobacco crop. "There have been some growers who have opted out because of inputs and the difficult nature of the season. So we are looking forward to a crop of at least 65 to 70 million kgs," said Ferreira. The ZTA chief however said prices could firm for the quality tobacco crop, which was planted under the water shortage. Some growers reported that they had already lost significant volumes of their crop, which had been damaged after farmers went for several hours without electricity to cure the tobacco. Farmers said they were only receiving limited supplies of power daily, and usually during the night, instead of getting a whole day's supply to cure their crop. Economic analysts warned this week that the drop in tobacco production could further hasten the economic meltdown marked by out of control inflation and shortages of essentials. With Zimbabwe's nine-year-old foreign currency crisis increasingly choking its frail economy, a boost in tobacco output, a crucial earner of hard currency in the troubled economy, was expected to bring relief to the government. But with the drastic drop in tobacco output, Zimbabwe could experience an acceleration of its economic meltdown, with merchants reportedly shifting their attention to nascent regional tobacco growing countries such as Zambia, Malawi and Tanzania, which are taking steps to boost output. Zimbabwe's dramatic tobacco plunge is attributed to the effects of the unsystematic seizure of white-owned farms by the government ostensibly for redistribution to landless blacks. At its peak in 2000, the country produced a record 237 million kgs of the golden leaf, raking in US$400 million. But earnings have been falling since then, recording an estimated US$170 million last year. Enditem