Zimbabwe: Tobacco Deliveries Surpass Target

Source from:  AllAfrica.com 09/19/2010

Harare - Tobacco deliveries have this year breached the 121 million kg mark, surpassing the revised target of 120 million as contract sales continue. The target was revised upwards four times since early July. This is the first time in eight years deliveries have passed 100 million kg. Tobacco Industry and Marketing Board chief executive officer Dr Andrew Matibiri yesterday said contract sales would continue. "It is the contractors who will inform us of the closing of their market but normally we close at the same period. Mop-up sales are going to be conducted at the same time," he said. At the beginning of the tobacco season, the industry had projected an output of 77 million kg of the golden leaf to pass through the floors. The TIMB, however, revised this to 93 million kg, which was later revised to 114 million and then 120 million kg. The initial targets were based on an early crop assessment in the wake of a dry spell that had affected most of the tobacco. At the closing of the auction sales on September 3, more than 120 million kg had been sold with the contract system contributing the bulk of the deliveries. The bulk of the crop so far has been sold under contract system where 78, 689,429 kilogrammes worth US$239, 259,428 were sold. A total of 42, 466,566 kilogrammes were sold at the other two auction floor - the Tobacco Sales Floor and Zimbabwe Industry Tobacco Auction Centre. The country's tobacco output slumped to 36 million kilogrammes in 2008 from a record 235 million kilogrammes in 2000. However, production is picking up with farmers targeting 150 million kg from 90 000 hectares next season. So far seed sales have surpassed last season's figures by 66 percent: an indication that more farmers are moving into the business while others are increasing their hectarage. Tobacco seed sold so far is equivalent to 96,872 ha. Last season's seed sales at the same time were sufficient for 58 000 ha. More than 54 000 farmers have registered to grow tobacco in the next season. Tobacco farming has become a lucrative business because of the crop's higher prices compared to cotton and maize. This has also seen the country moving towards regaining its position as one of the major producers in the world. Enditem