Zimbabwe: Tobacco Deliveries Remain Depressed

Source from:  The Herald (Harare) 18 September 2008 09/19/2008

THE impending closure of the current tobacco selling season has done very little to influence the increase in tobacco deliveries, which have remained depressed. This is in spite of the fact that average prices have risen from around US$3 per kg to above US$4 per kg in recent days. The mass of tobacco sold at all three floors has hardly moved and is still hovering just above 40 million kg. As of Friday last week 43,8 million-kg of the anticipated 77 million kg had gone under the hammer as opposed to 68 million kg for last season. Farmers are reported to be battling with rising transport costs and diesel shortages while others are racing against time to secure sufficient coal to cure their tobacco. Other farmers were said to be holding on to their crop until the very last minute in the hope of getting the best possible price. Farmers have already expressed concern that the selling season can not end in two weeks time but will have to be extended. The Tobacco Industry Marketing Board has indicated that the selling season could be extended if there is a need to do so. Meanwhile the 43,8 million-kg sold earned the country US$289,6 million against US$159,9 million for last year. The seasonal average price at US$6,60 per kg, is relatively higher than last season's average of US$2,34 per kg. At least 28,6 million kg were sold under the contract system and 15,1 million kg were sold under individual sales at an average US$3,15. Enditem