Zimbabwe: 279 Kg Tobacco Seed Sold

Source from:  The Herald (Harare) 31 July 2008 08/01/2008

THE Tobacco Industry and Marketing Board (TIMB) has so far sold 279 kilogrammes of flue-cured tobacco seed in preparation of the forthcoming farming season. TIMB acting chief executive Dr Andrew Matibiri said that the seed was enough to cover 45 000 hectares. The seed was sold during the period up to the end of last week and it is just below 15 percent of the seed that had been sold during the same period last year. The sales were an improvement from the 260 kilogrammes of tobacco seed that was sold a fortnight, which was enough to cover 40 000 hectares of land. "More farmers are still coming in to buy seed, an indication that this year's target of 65 000 hectarage of land up from last season's 61 000 hectares is achievable, if we receive inputs in time" added Dr Matibiri. Dr Matibiri is, however, concerned about the shortages of inputs saying this would negatively impact on production in the industry. "Other issues affecting the industry are the non-availability of fertilizers, both Compound C and Ammonium Nitrate, agro-chemicals and electricity outages that affect the irrigation of seedbeds," he said. The shortage of electricity has already impacted negatively on this year's winter wheat programme, with farmers failing to meet targets. Some of the wheat has been written off due to moisture stress stemming from the fact that farmers failed to get enough electricity to irrigate their crop. However, there is progress being made on fertilizer, as the fertilizer production started last week following the release of US$10,1 million to the industry by the Reserve Bank of Zimbabwe. Zimphos has already supplied 1 000 tonnes of superphosphates to fertilizer companies, Windmill and Zimbabwe Fertilizer Company. Superphosphate is a key ingredient in the production of fertilizers. The industry is expected to supply Ammonium Nitrate at a rate of 1 250 tonnes per week and 3 000 tonnes per week for Compound D starting this week. Meanwhile, tobacco deliveries to the country's three auction floors to date continue to lag behind those for last selling season despite a superior average price being offered this season and the liberalisation of the exchange rate. The disparities, which started over two weeks ago, have been a result of a steep decline in deliveries. Dr Matibiri said the decline in deliveries had been a result of diesel shortages and low cash withdrawal limits. Farmers had bemoaned the low withdrawing limits of $200 billion, which they claimed was too little. Statistics released by the TIMB show that 33,6 million kg of tobacco have been sold at the three auction floors at an average price of US$3,19 per kg since the floors opened in April compared to 48,9 million kg that was sold at US$2,33 per kg during the same period last year. The 33,6 million kg grossed US$107,3 million while the 48,9 million kg earned the country US$114,2 million. About 21,4 million of the 33,6 million was sold under the contract system at an average of US$3,12 per kg earning the country US$67,1 million. A total of 12,1 million kg were sold under individual sales at an average price of US$3,20 realising US$40,2 million. Of the 12,1 million kg, 4,3 million kg were sold at Zitac at US$3,20 per kg grossing US$14 million followed by Burley Marketing Zimbabwe with 3,9 million kg that were sold at an average price of US$3,36 per kg realising US$13,4 million. Tobacco Sales Floors sold the least amount of tobacco at 3,7 million kg which were sold at US$3,36 per kg realising US$12,7 million. Enditem