Tobacco Output to Increase 33 Percent

Source from:  New Zimbabwe 12/25/2009

TOBACCO output in the new farming season is expected to reach 75 million kilograms, a significant thirty-four percent improvement on the 56 million kilograms which went through the auction floors this year. The country realised over US$168 million from this year's crop with prices averaging US$3.02 per kilogram between April and August 2009. Government says the 100 percent retention of tobacco proceeds for farmers that was introduced under a new liberalised agricultural marketing framework meant that the income benefitted farmers directly. Meanwhile, from this year's sales, contract farming accounted for 39 million kilograms which earned US$119.6 million, while 15.7 million kilograms valued at US$45.3 million was produced under individual farmer initiatives. This year's sales also benefitted from the 2008 carry-over stocks of 16 million kilograms withheld by farmers who were unhapy with the existing exchange rate regime and stringent foreign exchange surrender requirements which meant they could have sold their crop at a loss. Government says indications are that a total of 65 000 ha are being put under tobacco for the coming season with about 30 000 hectares of thins being under contract farming. The Tobacco Industry Marketing Board (TIMB) and Agribank assistance schemes have seen A2 farmers commit 20 000 hectares to the crop while small-scale growers have planted 15 000 hectares. These efforts are expected to see tobacco output increase to 75 million kilograms which is however, still way-off the 200 million kilogram peak production the country used to produce. Enditem