Zimbabwe: 2009 Tobacco Selling Season Highly Successful

Source from:  Allafrica.com 08/28/2009

THE curtain comes down on September 18 for a highly successful 2009 tobacco selling season in which most things went right for the farmers. From the farmers' standpoint it was refreshing to go through a season without any major hiccups as was the case with the three or four seasons prior to this one. For once farmers were paid expeditiously and the large number of expectant farmers at the three auction floors in Harare that had become the norm over the years as the growers waited for their payments, decimated. The switch from the local currency to the multiple currency system was the tonic that was needed as it managed to address virtually all the problems that farmers were facing at the floors. For once there was no need for a support price for the farmers and the US$1 500 cash payouts were more than adequate for the farmers' requirements. Some farmers interviewed expressed optimism about the future of the sector if the current trend continues. Mr Trynos Samu of Odzi said the current season was a major departure from the previous season. For once the season is being extended not because farmers had failed to deliver due to problems that affected the flow of tobacco to the three auction floors, but because there is more tobacco than that which was projected. The 42 million-kg of tobacco that was targeted for the season was surpassed early this month with the new target now being around 55 million-kg. This has prompted Government to set a new target of about 120 million-kg for the coming season which was not within reach given that about 377 000 kg of tobacco seed has been sold so far. "Barring the teething problems that we had with the payment system at the beginning of the season, this is what every season should be. "There has been a dramatic change and just like any other case with changes there are always some challenges that need to be addressed but overally this has been one of the most successful seasons in a very long time," he said. Mrs Monica Jese of Headlands said although most challenges had been addressed the issues of transport and inputs were still areas of concern to farmers. "We had to pay at least US$10 per bale in terms of transport which was a bit high given that transport constitutes just a fraction of our costs. "Authorities need to do more to ensure that the issue is addressed as a matter of urgency but I believe that if the current tax regime continues we should seriously consider creating syndicates where we pool our resources together and buy trucks which we can then use collectively to transport our produce. "The tax regime on imported vehicles is low enough to encourage us to import affordable and reliable lorries," she said. While most farmers were basking in the glory of being paid in foreign currency, there was a lost opportunity for input producers as well as farming unions. Most tobacco farmers ended up using their hard earned cash on luxuries, radios, televisions, DVDs, sofas, beds which were readily available from traders that were camped within or just outside the floors as opposed to the things that matter most. This was a direct failure by the farming unions to assist their members by engaging input suppliers to ensure that there are schemes where farmers pay for their inputs through direct deductions with the suppliers ensuring that farmers get their inputs at the floors. This would not only safeguard the future of the industry but also ensure that farmers are not swindled out of their hard-earned cash before making these important purchases. While it was smooth sailing on the auction side there were serious challenges on the contract side with contractors reported to have lost tobacco worth millions of dollars through farmers who failed to deliver the tobacco that they had been contracted to grow. Most of the tobacco was reportedly intercepted by side marketers while some of it ended on the auction market. While some contractors have blamed the farmers for being dishonest by reneging on their contracts a war is raging with the farmers shifting the blame squarely on the contractors. Some farmers contend that while they had contracts, the contractors supplied them with fewer inputs that they had agreed on while in some instances farmers alleged that they were being made to honour contracts that they had signed but had not received the support that is specified in the contracts. Whatever the case may be, both parties need to come together and ensure that such problems are ironed out. Government also has a duty to craft appropriate legislation to ensure that all parties abide by their obligations of the contracts. Enditem