Zimbabwe: Tobacco Deliveries Improve 2009

Source from:  The Herald 05/31/2009

Harare - TOBACCO deliveries to the country's three auctions have improved significantly since the season opened over two weeks ago. A visit to the floors showed long winding queues of trucks waiting to deliver their tobacco. Stakeholders attributed the marked improvement in deliveries to the current dispensation where farmers are being paid in foreign currency. "Although there are slight problems with payments here and there, there is a marked improvement in terms of how the season is moving. "The paying of farmers in foreign currency has really managed to address a lot of problems that had affected farmers during the previous seasons," said one stakeholder. Farmers are currently being given US$1 500 as cash payouts with the remainder of their proceeds being deposited in their accounts. According to latest statistics released by the Tobacco Industry Marketing Board, earnings from sales so far amount to US$19,4 million against US$5,5 million for last season. The US$19,4 million was realised from the sale of 6,8 million kg at an average price of US$2,84 per kg. This compares favourably with 3,3 million kg that was sold at the same time last season at an average price of US$1,67 per kg. The total number of bales laid to date amounted to 64 293 and of these 58 893 went under the hammer. During the corresponding period 36 351 were laid and of these 35 123 went under the hammer. A total of US$12,5 million was realised from the sale of 4,4 million kg under contract sales while US$6,8 million was realised from the sale of 2,3 million kg under individual sales. In terms of individual sales, BMZ has sold the most tobacco amounting to 831 904 kg worth US$2,3 million while 810 562 kg worth US$2,3 million was sold at Zitac. Tobacco Sales Floor sold the least tobacco amounting to 725 021 kg worth US$2,1 million. A total of 42 million kg are expected to be delivered before the end of the season. At current prices of US$2,84 a kg, the country could earn over US$119 million by the end of the season. Enditem