Zimbabwe: Tobacco Deliveries to Auction Floors Increase

Source from:  The Herald 05/07/2009

Harare - STAKEHOLDERS in the tobacco industry are finalising preparations ahead of the opening of the 2009 selling season tomorrow. Most employees at the three auction floors were by yesterday afternoon busy offloading tobacco that has been delivered by farmers. A number of job seekers had also positioned themselves outside the TSF premises hoping to be hired. Tobacco Sales Floors have so far received the biggest delivery of around 4 000 bales while Burley Marketing of Zimbabwe had received 400 bales while the Zimbabwe Tobacco Auction Centre had 300 bales. The figure for TSF was, however, likely to go beyond 4 000 as more trucks were coming through with tobacco. TSF managing director Mr Philemon Mangena said they were encouraged by the deliveries that had come through so far. He added that they were also making concerted effort to ensure that the floors are ready to host the official opening of the selling season ceremony tomorrow morning. "I believe that we are almost there in terms of our preparation and as always we are happy to be hosting the official opening ceremony," he said. Mr Mangena said that at least three banks would be operating from their floor this year as opposed to one that was operating last year. BMZ's managing director, Mr Bruce Searles said only one farmer had delivered 14 bales while another had delivered seven bales and the majority had brought in below five bales. "It seems that the farmers want to test our system first before they bring in more tobacco," he said. Mr Searles also said the major challenge this season would be to mobilise sufficient funds to pay the farmers. Farmers would be paid US$1 500 in cash while the remainder of their earnings would be deposited in their Foreign Currency Accounts. The cash pay-outs are expected to be made within an hour of the farmer having sold his or her crop. Stakeholders said they were expecting prices to be firm this season although the biggest determinant would be the quality. At least 42 million kg are expected to be delivered to the tobacco auction floors this season. It is anticipated that more than 75 percent of the total 2009 crop will be sold through the contract system. At least 16 contract buyers have been licenced to buy tobacco this year. These include Chidziva Tobacco Processors, Gold Driven Investments (Pvt) Ltd (GDI), Gwaai Leaf Tobacco Company and Intercontinental Leaf Tobacco Company. Other buyers include Northlee Investments (Pvt) Ltd, Mashonaland Tobacco Company, Ripthtra Investments (Pvt) Ltd, Saltlakes Holdings, Shasha Tobacco P/L, Tian Ze, Western Tobacco Company and Zesa Enterprises. Zimbabwe Farmers Development Company, Zimbabwe Global Agric Development, Zimbabwe Leaf Tobacco Company and Zimbabwe Tobacco Growing Company are the other licenced buyers. Enditem