Zimbabwe: Tobacco Sales Off to Good Start

Source from:  All Africa 02/18/2011

THE 2011 tobacco selling season got off to a promising start with the first bale selling for US$4,20 per kg. This was however, marginally lower than US$5 that was received for the fi-rst bale that went on sale last year. By the end of the inaugural sale, about 1 500 bales had been sold at ave-rage prices ranging between US$1 and US$4,20. At least 3 500 bales are expected to be sold at the Tobacco Sales Floor to-day in what will constitute a full sale. With contract sales starting today, TSF is expected to handle both sales as the other licensed floor that will be operated by Boka Investments is still undergoing renovations. Tobacco Industry and Marketing Board chief executive, Dr Andrew Ma-tibiri said they did not anticipate any problems, as TSF was ready to handle both sales. "There is enough space here and we are only allowing those farmers that have booked their tobacco to deliver their crop, so there should be no pro-blem. "However, we have made continge-ncy plans for farmers who bring their tobacco without having booked first," Dr Matibiri said. A total of 170 million kg of tobacco is expected to be delivered to the floors this year, up from 123 million for last year. More than half of the tobacco to be marketed this season is expected to come from small-scale farmers, that is, communal and A1 farmers who now constitute 82 percent of the total registered tobacco farmers. Agriculture, Mechanisation and Irrigation Development Minister Dr Joseph Made who officially opened the floors, challenged farmers to use proceeds from tobacco sales wisely, particularly by re-investing in cropping inputs since capital is in short supply in the country. Dr Made said he expected to see a pricing and purchasing pattern that ensured viability to both farmers and merchants this season. "Apart from the price issue, last season growers faced a number of problems at the auction floors. "They spent much of the time at the floors without ablution facilities and there was serious congestion, delays, theft of their tobacco bales, extortion, payment delays, inadequate catering services, poor security and so on," he said. He added that this season he had di-rected the Tobacco Industry and Marketing Board and all players in the industry to put in place strategies that would ensure respect to farmers. "My ministry will be monitoring the floors closely so that these problems do not recur," Minister Made said. TSF tobacco grower of the year first runner up, Dr Munyaradzi Kereke who was part of the proceedings said as tobacco farmers they were happy with the opening prices, which he said were fair. "As a farmer I think the opening price of US$4,20 was fair but as farmers we would have wanted it to be higher," he said. He added that there was need for Government to continue assisting farmers as is the practice globally as farming is a critical sector that is key in any economy. "We want to urge Government to up the tempo in their support for farmers as most farmers are failing to access loans from banks due to lack of collateral," he said. Headlands farmer Mrs Alice Tandabato who had just sold her two bales at an average price of US$2 per kg said she was satisfied with the prices that were obtaining. "I am quite happy with the way things have gone the two bales that I have sold were just to get some money for some provisions. "I still have 10 bales that I need to bring and hopefully by then prices will have appreciated," she said. Wedza farmer Mr Canaan Gava said he expected the tobacco price to increase as the season progresses. "Hopefully prices will increase as the quality of the leaf improves," he said. Another farmer, Mr Ephraim Tendai who had only come to assess the situation said he was content with the current prices and does not regret growing tobacco. "Buyers should offer good prices so that we go back to the land using our proceeds other than going for loans and contractors," he said. Zimbabwe Tobacco Association president, Mr Kevin Cooke shared the same sentiments with farmers. He said the current prices were good and should improve as more quality tobacco comes in. "However I am concerned with the over supply of tobacco on the world market which may cause demand to soften," he said. Mr Cooke was quick to add that Zimbabwe could shake that off because of its popular high flavoured crop. Mrs Abigail Toriyo from Rusape was, however, disappointed with the prices saying that she had expected higher prices. Some Class B buyers who have been suspended from buying tobacco during the current season for allegedly duping farmers last season said current prices could have been much higher had they been participating. They said their suspension from the market could disadvantage farmers as there was no longer competition. However, Dr Matibiri was not moved by their sentiments since they all agreed that they cheated farmers in the previous years. In the 2010 marketing season, a serious decline in the average price occurred from about eight weeks into the season leading to significant withdrawals of tobacco from the floors. Estimates indicate that 78 380ha of tobacco had been planted by December 31. Out of this hectarage, 15 042ha were under irrigated tobacco. According to Dr Made, of the total area planted, tobacco contract growing companies, or contractors supported 35 534ha or 45 percent of the total hectarage. "The contract growing and marketing system, which is now entering its seventh successive marketing season has played an important part in maintaining tobacco production in the country. "Government is also fully aware of the importance of tobacco to the economy and will continue to support its production and farmers and merchants to engage in fair trade,' he added. Zimbabwe enjoys a distinction of being a top flavour tobacco producer alongside other top producers, Brazil and the United States of America. Enditem