Zimbabwe: Tobacco Rakes in U.S.$120 Million

Source from:  The Herald (Harare) 22 August 2008 08/25/2008

EARNINGS from tobacco sales have now gone beyond US$120 million but compare unfavourably to the US$134,5 million 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 37,7 million kg of tobacco at an average price of US$3,20 per kg. The US$134,5 million that was earned last year was realised from the sale of 57,3 million kg at an average price of US$2,34. Of the total, contract sales grossed US$77,3 million from the sale of 13,2 million kg while individual sales grossed US$43,7 from the sale of 13,2 million kg. Despite superior sales, the average prices for contract sales have remained low at US$3,14 compared to those offered under the individual sales as US$3,31. The total number of bales laid to date amounted to 403 421 and of these 387 877 were sold. Of the three floors, Zitac sold the highest amount of tobacco amounting to 4,7 million kg worth US$15 million followed by Burley Marketing Zimbabwe that sold 4,3 million kg worth US$14,5 million. Tobacco Sales Floors sold the least amount of tobacco at 4,1 million kg worth US$14,1 million kg. Transport problems and diesel shortages continue to affect tobacco deliveries to the country's auction floors. At least 75 million kg are expected to be delivered to the auction floors this season. Enditem