Zimbabwe: Tobacco Yield Set to Rise

Source from:  The Herald (Harare) 21 August 2008 08/22/2008

ABOUT 70 percent of Zimbabwe tobacco may be sold on contract to merchants next year, with farmers avoiding the traditional auction houses, the Tobacco Industry and Marketing Board has said. This would increase production levels, TIMB chief executive Dr Andrew Matibiri said, as farmers would receive assistance in sourcing inputs from contractors. "That situation may help raise production because farmers growing on contract generally receive assistance in sourcing inputs from the merchants," he said. "There is a shortage of inputs, particularly fertilizer." Tobacco production declined since 2000 from the peak 210 million kilogrammes to around 55 million-kg last season. The crop was the country's largest foreign currency earner. Tobacco farmers traditionally sell their leaf through three auction houses, including Zimbabwe Auction Centre, the world's biggest. The country produces mainly flue-cured tobacco, which rivals the US for quality. Zitac competes with privately owned Tobacco Sales Floor and Burley Marketing Zimbabwe. BMZ executive director Mr Bruce Searles described the situation as worrying. "We will loose business, definitely but we will march on," he said. Auction floors do not have access to foreign currency to import inputs for farmers. But it will be a tragedy for Zimbabwe's tobacco marketing, as the auction system is the barometer for prices. Dr Matibiri indicated that the number of merchants contracting farmers would be expected to increase from 13 the previous season to 17. Deliveries of the crop have fallen to 36,6 million kilograms since sales began in April, compared with 54 million kilograms in the same period last year. Tobacco deliveries to the floors continues to be affected by high transport costs and diesel shortages, while in other instances farmers were failing to get sufficient coal to cure their tobacco. The 36,3 million-kg grossed US$116,1million while the 54 million-kg earned the country US$125,8 million. Enditem