Zimbabwe: 118,5 Million Kilograms Flue Cured Tobacco Goes Under the Hammer

Source from:  Zimbabwe Independent 07/04/2011

A total of 118,5 million kgs of flue cured tobacco valued at US$323,4 million have so far been sold since the auction floors opened in February this year. The sales are up 27,14%, from the 93,1 million kgs valued at US$276,5 million sold during the same period last year. According to figures from the Tobacco Industry and Marketing Board (TIMB), of the 118,5 million kgs sold, Tobacco Sales Floor handled 30,7 million kgs worth US$76,6 million. Boka Tobacco Floors sold 14,1 million kgs valued at US$31,7 million, while Millennium Tobacco Floors handled 8,9 million kgs valued at US$21,5 million. Contract farmers accounted for 64,5 million kgs valued at US$193,4 million during the period. The golden leaf's average price has been US$2,73, from US$2,97 recorded during the same period last year, an 8% decline. A total of 1,5 million bales were laid, a 35,3% increase from last year's 1,1 million. TIMB said Zimbabwe's tobacco output may rise 38% to 170 million kgs this season, as more farmers planted the crop as the nation's "economic environment" improved. "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 TIMB. 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