Tobacco Deliveries Increase

Source from:  The Herald 04/01/2010

TOBACCO deliveries to the auction floors have been increasing daily as the Easter holiday approaches resulting in some farmers failing to sell their crop upon delivery. This has prompted the Tobacco Industry and Marketing Board to increase buying teams and has extended the selling times. Two auctions are now running concurrently as opposed to one previously. TIMB chief executive, Dr Andrew Matibiri said there had been an increase in tobacco deliveries over the past few days. "Farmers need cash for the holiday hence the increase in deliveries. We would want to clear the back logs and ensure everyone sells their crop before the long weekend," he said. Dr Matibiri said some small-scale farmers who were bringing their crop to the floors without making earlier booking arrangements were also worsening the backlog. "Others stay at the floors even after selling their crop as they will be waiting for the transport back home," he said. Yesterday the Zimbabwe Industry and Tobacco Auction Centre received 21 000 bales when a single sale comprises of 3000 bales. ZITAC public relations officer, Ms Kudzayi Hamadziripi said her company was going to conduct two sales on yesterday and today but still there will be a backlog. "There has been panic with some farmers as they fear the floors will close for the World Cup. We will be open and carrying out normal sales," she said. The tobacco-selling season was opened earlier than the previous years to ease farmers' cash flow constraints, which are typically acute at this time of the season. At first sales were conducted on Tuesdays and Thursdays and later increased to five days a week due to the increase in tobacco deliveries. This year most tobacco growers are happy about the price being offered at the auction floors. Tobacco is selling at an average price of US$3,43 per kilogramme compared to US$2,94 last season. Most tobacco growers described the price as fair and will enable them to go back to the land. During the past few years, tobacco growers used to have problems getting their money and had to spend days camping at the floors waiting for their money. Beginning last season, things improved with farmers being paid their money in foreign currency. Meanwhile, the country has so far earned US$35,3 million from the sale of 10,34 million kg of flue-cured tobacco, under both the contract and auction systems, since the beginning of the 2010 tobacco-marketing season just over a month ago. Of the 10,34 million kg that has been sold, the bulk has been sold under auction which accounted for 6,2 million kg worth US$21,02 million with the remaining 4,14 million kg valued at US$14,3 million having been sold under contract. The bulk of tobacco sold under the auction system went under the hammer at the Zimbabwe Tobacco Auction Centre, which realised US$3,35 million from the sale of 11,41kg at an average price of US$3,40 per kg. A total of 2,84 million kg were sold at Tobacco sales Floors at an average price of US$3,37 per kg, realising US$9,61 million. Enditem