Tobacco Earnings Rise to US$96,4 Million

Source from:  The Herald 04/29/2010

THE country has so far earned US$96,4 million from the sale of 30,9 million kg of flue-cured tobacco, under both the contract and auction systems, since the beginning of the 2010 tobacco marketing season just over two months ago. The figures for this year compare favourably with the US$95,6 million that was realised from the sale of 32,7 million kg that was sold during the corresponding period last year. Prices per kg for this year are much firmer than last year with the seasonal average being US$3,12 per kg against US$2,84 per kg for last season. Of the 30,9 million kg that has been sold, the bulk has been sold under auction which accounted for 17,1 million kg worth US$51,9 million with the remaining 13,7 million kg valued at US$44,4 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$26,6 million from the sale of 8,8 million kg at an average price of US$3,02 per kg. A total of 8,3 million kg was sold at Tobacco Sales Floors at an average price of US$3,03 per kg, realising US$25,2 million. Despite the sluggish start to the season there has been an upsurge in tobacco deliveries as the season progressed. According to the latest seasonal statistics, a total of 152 277 bales have been laid at Zitac of which 136 879 bales were sold. At TSF, a total of 132 855 have been laid so far since the season began with 117 736 of these going under the hammer. During the opening week the sales floor was averaging between 300 and 400 bales per sale. A total of 77 million kg of virginia tobacco is expected to go under the hammer this season as more farmers grew the crop this season due to the huge returns that tobacco farmers realised last season, that saw tobacco being voted as the best paying crop. Enditem