Zimbabwe: Tobacco Earnings Surpass U.S.$100 Million Mark

Source from:  The Herald (Harare) 22 July 2008 07/23/2008

EARNINGS from the sales of tobacco have now surpassed the US$100 million mark since the beginning of the selling season in April. Latest figures released by the Tobacco Industry Marketing Board show that total earnings from tobacco to date have now reached US$102,2million. This compares unfavourably with US$105,5 million that was earned during the same period last year. The money was earned from the sale of 32,1 million kg of tobacco at an average price of US$3,18 per kg. Last year, a total of 45,4 million kg were sold at an average price of US$2,32 per kg. Despite the lower prices offered under contract sales at US$3,11 per kg, earnings from this division accounted for the bulk of the crop that has been sold so far with 20,5 million kg having been sold for US$63,9 million. Individual sales with a firmer price of US$3,30 grossed US$38,3 million from the sale of 11,6 million kg. Zitac led the other floors in terms of sales despite offering US$3,19 per kg as opposed to US$3,36 a kg that was being offered at Tobacco Sales Floor and US$3,35 at Burley Marketing Zimbabwe. A total of 4,2 million kg were sold at Zitac grossing US$13,6 million while 3,7 million kg were sold at Burley Marketing for US$12,6 million and 3,5 million kg were sold at Tobacco Sales Floor for US$11,9 million. Tobacco deliveries to the country's three auction floors have improved as a result of the liberalisation of the foreign exchange market and firming prices. Enditem