Tobacco Sales Generate US$274m

Source from:  New Zimbabwe 07/13/2010

DATA released by the Tobacco Industry Marketing Board (TIMB) shows that 92.2 million kilogrammes of the golden leaf have been delivered during the current marketing season generating US$273.8 million for the country. With deliveries continuing as prices firm, industry watchers say there is a possibility this year's crop could - for the first time in eight years - reach the 100 million kilogramme mark. "There's a bigger crop than anticipated," TIMB chief executive Andrew Matibiri said. The TIMB has since revised its projections for the season from an initial 77 million kgs to 93 kgs, a 17 percent adjustment. Tobacco production collapsed from highs of around 200 million kgs in the last decade as output was adversely affected by the controversial re-organisation of the country's agriculture and droughts. In 2000, the country produced 236 million kilograms of tobacco and was the world's second-largest exporter after Brazil. But by 2008 output had retreated to as low as 35 million kilogrammes and the country ranked behind Brazil, India, the US, Argentina and Tanzania, according to the website of Universal, the world's biggest tobacco leaf merchant. However production of the crop - traditionally one of the country's major foreign currency generators, contributing 26 percent of gross domestic product - is beginning to recover. Meanwhile the TIMB said contract sales continue to dominate the activity contributing just over 55 million kilogrammes of the crop delivered to date. The contract crop is also attracting better prices, averaging US$3,11/kg while sales under the auction system topped US$2,75/kg. Enditem