Zimbabwe: Tobacco Growers to Face Marketing Constraints

Source from:  The Herald 05/05/2009

SOME small-scale tobacco growers will have problems in marketing their crop this season, as they do not have adequate money to buy packaging material. This emerged at a grading training session conducted by the Zimbabwe Industry Tobacco Auction Centre at Nyamadombo Resettlement in Shamva last week. Tobacco grower, Mr Kenias Karikoga said he had graded the bulk of his crop but is yet to procure packaging material. "I do not have the foreign currency to pay for the hessian bags and also to pay for the transportation of the crop," said Mr Karikoga. Farmers suggested the situation could be better if companies provided the hessian bags to the farmers. However the Zimbabwe Industry Tobacco Auction Centre said it would assist growers with transport and hessian bags. ZITAC operations manager, Mr Cleopas Mhepo said the farmers could organise themselves into groups for easy transportation of tobacco to the auction floors. "Transportation costs and that of hessian bags will then be paid through the stop order system," said Mr Mhepo. The farmers were also concerned about this year's payment system. Shamva ward 21 Agritex Officer, Mr Causemore Chihota said farmers from his area were afraid favourable prices could be offered at the floors but were concerned the cash may not be available. Last year farmers sold their crop but could not get their cash on time resulting in them staying at the auction floors. Lecturing on tobacco grading, ZITAC starter, Mr Manager Gumbo said it was vital that tobacco growers grade their crop carefully. It has been noted that some farmers mix different types of leaves in the same bale resulting in poor quality while others cheat by placing the best leaves on top of poor ones. "Farmers should bag priming, cutters, leaves and tips separately. "The quality of the crop can also be compromised if the tobacco is left on the sun," said Mr Gumbo. At the auction floors, bales with foreign matter are returned to the farmers and the growers may face prosecution. If a farmer is not satisfied by the price of the crop, he has a right to sell it for the second time. This year, all transactions on the sales floors would be denominated in United States dollars and accordingly, growers will be paid their sales proceeds in US dollars, less statutory payments, selling commissions and stop order deductions. After selling their crop, all growers will be given a stated amount as cash with the rest being deposited into the foreign currency accounts. Auction sales will open on May 7 with contract sales starting the next day. Some 42 million kg of tobacco is expected at the floors this season with more than 75 percent of the total 2009 crop to be sold through the contract system. Enditem