Zimbabwe: Tobacco Selling Days Increased

Source from:  The Herald 03/11/2010

THE Tobacco Industry and Marketing Board yesterday increased the number of selling days for tobacco by another day as a result of an improvement in deliveries to the two floors. Tobacco sales will now be conducted on Tuesday, Wednesday and Thursday instead of the Tuesday and Thursday slots that had applied since the beginning of the marketing season last month. The additional day was allotted after the Zimbabwe Tobacco Industry Auction Centre yesterday made representation to TIMB after it exceeded the maximum of 3 800 bales that can be sold per day. By yesterday Zitac was sitting on 4 300 bales, 1 500 bales more than it is allowed to sell per day. This presented problems for Zitac as the owners of the extra 1 500 bales wanted them to be sold yesterday which resulted in the company approaching TIMB which responded by adding an additional day. TIMB chief executive Dr Andrew Matibiri said they would continue to monitor the situation and increase the days as the situation improves. "While the situation at Tobacco Sales Floor is not as critical as that of Zitac we are sure that they have something to sell today (Wednesday). "It appears that the decision to open the floors early was a wise one because farmers are responding well," he said. Zitac spokesperson, Ms Kudzai Hamadziripi, who was naturally elated by the development, said this was a very encouraging sign of good things to come. "We are still in the infancy of the marketing season but deliveries have improved dramatically we are expecting a good season," she said. The increase in deliveries has been further buttressed by the firming of prices on the local market with tobacco selling at between US$3,46 per kg and US$4,90 per kg. This is an improvement from last season when prices were around US$2,91per kg. Ms Hamadziripi said the firming of prices so early in the season was a good indication for farmers. "We are very encouraged given that what we are receiving are just primings (lower inferior quality leaves)," she said. Meanwhile US$7,2 million has been realised from the sale of 2 090 million kg of tobacco at an average price of US$3,46 per kg, since the season began last month. This compares favourably with 5,7 million kg that was sold for US$16,23 million kg last season at an average price of 2,84 per kg. Of the 2 090 million kg, 1 099 million kg valued at US$3,7 million was sold under contract with the balance of 990 578kg worth US$3,4 million having been sold under the auction system. In terms of auction sales, Zitac has sold 548 729 kg which fetched US$1,9 million at an average price of US$3,50 while 441 849 kg went under the hammer at TSF realising US$1,5 million at an average price of US$3,48 per kg. A total of 77 million kg is expected to go under the hammer this season up from the 58,6 million kg last year. Enditem