Curtain Finally Comes Down on Tobacco Selling Season

Source from:  The Herald 09/08/2009

THE curtain finally came down on the 2009 tobacco selling season on Friday last week, exactly 19 weeks after the season opened on May 4, with the conclusion of auction sales while contract sales will continue until September 18. Deliveries of tobacco meant for individual sales to the country's three auction floors had been thinning out in recent weeks while deliveries of tobacco for contract sales remained firm. Figures showed that more than 54,8 million kg of tobacco valued at US$164,9 million has been sold through both individual and contract sales. This was about 12 million kg more than the 42 million kg target that had been set by the Tobacco Industry and Marketing Board. Total sales figures for the whole season are however expected after the conclusion of contract sales. Of the total, contract sales accounted for 39 million kg valued at US$119,6 million while 15,7 million valued at US$45,3 million was realised under individual sales. Tobacco Sales Floor grossed US$18,1 million from the sale of 6,2 million kg of tobacco under individual sales followed by Burley Marketing Zimbabwe, which raised US$15 million from the sale of 5,1 million kg and Zitac where 4,3 million kg of tobacco valued at US$12,1 million went under the hammer. TIMB chief executive Dr Andrew Mati-biri said they would be assessing the need for clean-up sales, which would largely depend on demand. "We are encouraging farmers who still have tobacco to continue bringing their tobacco in and we will hold clean-up sales once we manage to put together sufficient tobacco to warrant full auction," he said. Clean-up sales as the name suggests are sales that are traditionally held after the end of the season to ensure that all tobacco held by farmers is mopped-up. Dr Matibiri said although the season was good in terms of farmers receiving their payments on time, it was not very good in terms of the amount of tobacco sold. "We had no farmers sleeping in the open at the floors as they were paid on time. "However, this was not the best of seasons in terms of tobacco delivered given that two years ago we sold at least 72 million kg under very difficult conditions. "We need to raise our production to at least 100 million to 120 million kg for the rest of the world to take us seriously in terms of tobacco production," he said. The tobacco selling season kicked off during the first week of May and had initially been expected to end on August 28 before the season was extended by a week to Friday, as deliveries remained strong. Enditem