Zimbabwe: Tobacco Sales Top U.S.$80m

Source from:  The Herald (Harare) 7 July 2008 07/08/2008

EARNINGS from the sale of tobacco since the opening of the selling season topped US$80 million this week as sales resumed after a brief stoppage to pave way for the Presidential run-off held last month. Earnings to date are slightly higher than the US$76,9 million that was earned during the same period last year. According to latest statistics released by the Tobacco Industry Marketing Board, the money was earned from the sale of 26,4 million kg of tobacco at an average price of US$3,16. During the corresponding period last year a total of 33,7 million had been sold at an average price of US$2,27. Despite the lower prices offered under contract sales at US$3,09 per kg, this mode accounted for the bulk of the crop that has been sold so far with 16,5 million kg having been sold for US$51,2 million. Individual sales with a better price of US$3,27 grossed US$32,4 million from the sale of 9,9 million kg. The total number of bales laid to date amounted to 336 151 and of these 318 829 went under the hammer. During the corresponding period 385 629 were laid and of these 369 625 went under the hammer. Zitac led in terms of sales despite offering US$3,17 per kg as opposed to US$3,33 a kg that was being offered at the other floors. A total of 3,7 million kg were sold at Zitac grossing US$11,9 million while 3,2 million kg were sold at Burley Marketing for US$10,6 million and 3 million kg were sold at Tobacco Sales Floor for US$10 million. Tobacco deliveries to the country's three auction floors continues to improve significantly as a result of the liberalisation of the foreign exchange market and firming prices. At least 75 million kg are expected to be delivered to the auction floors this season. At current prices of US$3,16 a kg, the country could earn over US$200 million by the end of the season, which is traditionally in September. A total of 73 million kg of tobacco went under the hammer last year at an average price of US$2,32 realising US$169,3 million up from US$54 million for the previous year. Enditem