Zimbabwe: Tobacco Deliveries Expected to Increase

Source from:  The Herald 07/29/2009

TOBACCO deliveries to the auction floors are expected to increase by at least 7,6 percent above the target set by the Tobacco Industry Marketing Board of 42 million kg before the end of the season next month. Already the 42 million kg target set by the TIMB was surpassed last week but deliveries have remained strong with a weekly average through out put of 2 million kg per day at all the three auction floors. Going by the daily average output and given that there is exactly a month to go before the end of the season, total deliveries could end at around 50 million kg. At current rates the extra eight to nine million kg could rake in an additional US$27 million at an average price of US$3 per kg. A total of 44,2 million kg had been sold by day 56 last Friday raising US$132,7 million. Sales are expected to be completed well within the 80 selling days or at the latest by Friday 28 August 2009. TIMB chief executive, Dr Andrew Matibiri attributed the extra eight to nine million kg of tobacco as tobacco that was left from last year. "We had independent surveys that were done on this year's crop and going by that survey 34 000 hectares was put under tobacco and this had the potential to yield 42 million kg which we set as our target," he said. A total of 47 million kg was delivered last year, which was a sheer drop from the 2008 selling season target of 75 million kg. This was after most farmers had held on to their crop after failing to get attractive prices and cash for their tobacco. However, there has been a marked improvement this year following the adoption of the multiple currency system that has seen farmers being paid out in United States dollars and addressing some of their viability concerns. Farmers are being given US$1 500 cash with the remainder of their earnings being deposited in their accounts. This has in turn resulted in most farmers delivering their crop with long winding queues at all the three floors. Enditem