Zimbabwe: Contract Sales Floors Open

Source from:  The Herald 03/01/2011

THE Tian Ze Tobacco Contract Sales Floors opened in Harare yesterday with more than 300 tonnes of the golden leaf going under the hammer for between US$0,50 and US$4,85 per kilogramme. Agriculture, Mechanisation and Irrigation Development Minister Jo- seph Made officially opened the floors. Farmers who spoke to The Herald said the prices were good and they expected them to continue firming as more quality tobacco came in. Chihota farmer Mr Chrispen Vambe said, "You cannot ask for more considering that most of the tobacco that came in today comprises first primings that are naturally of lower quality than the rest of the tobacco." Mr David Musabayana from Wedza said the prices were good considering that the contractor, Tian Ze, had given them inputs, workers' wages and money for equipment and infrastructure repairs and maintenance as well as electricity. "They do not charge any interest and do not ask for collateral, which most smallholder farmers usually find difficult to produce," he said. Tobacco Industry and Marketing Board chief executive Dr Andrew Matibiri said Tian Ze's involvement with the local tobacco industry, which started in 2005, had generated great enthusiasm among stakeholders. "Tobacco contract growing was introduced in the 2003/4 season and is now in its seventh successive sea- son. "Some of the reasons and justifications for its introduction were funding and inputs problems for new farmers, the need for training and extension for the inexperienced new farmers, the high cost of production and foreign currency shortages of which some contractors had access to off-shore funding," Dr Matibiri said. Seven companies have been licensed as contractors. "Last year Tian Ze bought 9,5 million kg through its contracting operations and a similar quantity on auction floor. "It ended up with an average price of US$3,44 per kg, the highest of the season ahead of other competitors by more than 30 US cents per kg," said Dr Matibiri. Tian Ze managing director Mr Zhang Qinggang said his company started with a single grower in 2005, growing 20ha of tobacco. Today the firm has contracted 159 farmers for 5 000ha of tobacco. "We are currently preparing to ship more than 10 million kilogrammes of processed tobacco to China. "During the 2009/10 season our mother company bought more than 34 million kilogrammes of processed tobacco from Zimbabwe and another 40 million kilogrammes from the whole of Southern Africa," Mr Zhang said. Tian Ze is also re-starting an idle tobacco processing plant. Enditem