Zimbabwe: Tobacco Sales Reach 115 Million Kilo Mark - Timb

Source from:  AllAfrica.com 08/31/2010

AT least 115 million kg of tobacco had been auctioned by last week representing the highest output in seven years, figures released ahead of the end of the selling season on Friday show. Figures from the Tobacco Industry and Marketing Board (TIMB) show that 116 904 898 kg had gone under the hammer at the country's two auction floors on Wednesday. The selling season opened on February 16. In the process US$341 010 216 was realised from the auction up from the US$174 457 761 farmers got during the same period last year. The last target set by TIMB was 114 million kg after production had surpassed previous targets of 77 million kg and 93 million kg. The output is the highest since 2003 when 165 842 000 kg were auctioned. From there output went on a decline and reached 48 million kg in 2008, the lowest output since 1980. However, there are projections that next year's output would increase by 50% basing on the tobacco seed sold so far, according to Andrew Matibiri, the TIMB chief executive officer. "So far more than 600 kg of tobacco seed has been sold and this will cover over 100 000 hectares. "Last year we planted 67 000 hectares," Matibiri said. According to TIMB figures output as of Wednesday was nearly double the tobacco auctioned during the same period last year when 58 570 652 kg were sold. Matibiri said tobacco has proved to be a crop of choice for farmers and this has led to an increase in production. The prices have also been good luring farmers to grow the golden leaf. Average price per kg peaked at US$3,47 on March 26 and was US$2,90 on Wednesday. During the same period last year the average price was US$1,90. TIMB said final delivery of flue-cured tobacco to the auction floors is Thursday this week. All growers are advised to complete their grading and baling operations well before the final sales day. Contract sales will continue until further notice. The flue-cured tobacco clean up sale for the 2010 marketing season will be held on September 28, TIMB said. "Depending on the volume of deliveries the clean-up sale may be continued for more than one day, until all delivered tobacco has been sold," TIMB said in a notice to stakeholders. Tobacco is one of the country's largest foreign currency earners and contributed 26% of the national gross domestic product last year up from 12% in 2008. Zimbabwe and other tobacco producing countries have to stave off measures from the World Health Organisation's Framework Convention for Tobacco Control (FCTC) proposed guidelines that would have a bearing on the crop. Article 9 of the FCTC proposes measures for testing and measuring the contents and emissions of tobacco products and for the regulation of these contents and emissions under Article 9. Articles 17 & 18 of the convention advocate support to farmers to grow alternative crops and the protection of the environment and health of persons respectively. Enditem