Tobacco Sales Earn US$48m

Source from:  New Zimbabwe 04/12/2010

ZIMBABWE has so far earned about US$48 million from tobacco sales since the selling season opened last month. Just over 14 million kilograms have gone under the hammer at an average price US$3.37 per kg in the 24 days of trade recorded to date. However, at the same time last year, 21 million kgs had been sold, earning the country US$61.1 million. Analysts say prices have been improving compared to last year's average of US$2.91 per kg. Meanwhile of the 14.2 million kgs sold to date 5.9 million valued at US$20.1 million was delivered under contract arrangements while the balance was sold under the auction system. Up to 77 million kgs of the crop are expected to go under the hammer this year up from 58.6 million sold last year. Zimbabwe's tobacco output which used to pick at over 200 million kgs per season is continuing to recover after suffering successive declines over the years. The fall in output has been blamed on droughts and the government's controversial land reforms. Last year, tobacco earnings contributed 26 percent towards Zimbabwe's gross domestic product, but the figure is expected to be higher this year. Enditem