Zimbabwe: Tobacco Sales Rake in Us$57,7million

Source from:  Zimbabwe Independent 03/29/2011

A TOTAL of 18,9 million kg of flue-cured tobacco valued at US$ 57,7 million has gone under the hammer at the Tobacco Sales Floors (TSF) since the beginning of the selling season on February 16. TSF is currently the only operating auction floor. Figures obtained from the Tobacco Industry and Marketing Board (TIMB) show that the deliveries were 26,33% more than the 14,9 million kg valued at US$50,2 million which were sold the same period last year from two auction floors -- TSF and Zimbabwe Industry Tobacco Auction Centre (Zitac). TSF is conducting four sales per day pushing through minimum of 2 000 bales daily. Farmers are being paid on the day of sale. The average price has been US$3,05 compared to US$3,35 last year, representing a 9,08 percent decline. Of the 18,9 million kg sold, contract farmers accounted for 11,2 million kg valued at US$36,3 million. TSF sold 7,1 million kg valued at US$19,9 million. Wastage is 7,90% compared to 3,08% less than 8,15% the same period last year. Analysts said deliveries were expected to increase following the opening of Zitac yesterday. TSF this week said it had established offices in different parts of Zimbabwe for pre-sale bookings. This follows a rise in the incidence of farmers delivering a crop that had not been booked for sale. The offices are in Rusape, Marondera, Bindura, Mvurwi, Karoi and Chinhoyi. Despite this de-centralisation, some farmers still bring their crop to the auction floor without advance bookings. TIMB said Zimbabwe's tobacco output may rise 38% to 170 million kilogrammes this season, as more farmers have grown the crop as the nation's "economic environment" improves. "Small-scale tobacco farmers currently account for more than half of Zimbabwe's output. As production rises, farmers should now focus on improving quality," said TIMB. Zimbabwe earned US$347,8 million from tobacco sales last year, according to the board which oversees the industry. China was the main buyer, replacing Western companies that were traditionally the biggest buyers, it said. Zimbabwe is the world's sixth-largest exporter of the flue- cured Virginia tobacco. It lags behind Brazil, India, the United States, Argentina and Tanzania, according to the website of Universal Corp., the world's biggest tobacco-leaf merchant. Enditem