Zimbabwe: Importing Blending Tobacco Noble, But …

Source from:  The Herald 08/11/2011

Just recently, The Sunday Mail ran a story headlined "Zimbabwe to import blending tobacco" in which it revealed that the country was expected to import 13,3 million kilogrammes of tobacco worth over US$44,5 million. The tobacco was purportedly needed for blending with locally-produced flavours. It was expected to come from Zambia, Malawi, South Africa, Uganda, India and China. Tobacco Industry and Marketing Board chief executive officer Dr Andrew Matibiri confirmed the development saying the blends to be imported were not available locally, but since cigarette manufacturers needed them, the country had no option but to import. Burley tobacco, for instance, was singled out as one of the blends to be imported, as it was in short supply locally. Dr Matibiri hinted that the burley tobacco Zimbabwe produced this season could not sustain demand by the local industry therefore it was vital to take the import route. Hardly a fortnight down the line, it emerged that there were hundreds, if not thousands, of burley tobacco farmers stranded at Boka Tobacco Auction Floors with their produce amid revelations that they were failing to secure a buyer. The traditional buyers of the product - BAT and Savannah are reported to have pulled out leaving the farmers who are scattered in almost every corner of the country stranded. Of course the TIMB did well to request Boka Tobacco Floors to accommodate the farmers, store their tobacco and later buy their produce but this solution was only temporary. At the time TIMB made the decision, the farmers had only brought 3 000 bales of the crop and most of them later told The Herald that they still had the bulk of the produce at their farms, which means that the volumes of the crop may easily balloon. Their situation sets the mind racing in search of answers on the future of the crop in Zimbabwe as many of the farmers may just switch to those varieties that have a ready market. This will literally turn the country into a net importer of burley tobacco yet there are farmers with the capacity to produce it and save the economy from further wasting the little cash that it has. TIMB issued import licenses to the companies that are importing the tobacco blends yet that same product, though inadequate quantities as they say, was yet to find its way to the market in many parts of the country. Interestingly, TIMB is also expected to have a register of all tobacco growers, information on their regions, hectarages and even the varieties they will be producing and in the end come up with yield estimates and help farmers secure markets as well. TIMB just needs to be surgical in its estimates of yields and move well before the marketing season to secure buyers for all the blends produced locally instead of waiting to react in the wake of crises. Of course the burley tobacco crisis was later resolved and the farmers finally returned to their homes but the farmers had gone through a harrowing experience that may naturally see some of them opting out. Farmers have on several cases complained over imported agricultural produce, which competes unfairly with local products. At the moment tobacco processors are comfortable with importing burley from Malawi where it is reportedly selling at an average price of US$0,89 per kilogramme and other countries as well that may have lower prices than the local ones. The production costs for farmers in our regional neighbours are also lower than what the local farmers are facing. In this case the burley farmers did not get any kind of assistance during production- not even contracts. This on its own makes it imperative for the farmers to be able to sell their produce at competitive prices and break even immediately after the start of the marketing season. Instead of the local firms investing in local farmers they are promoting farmers in other countries. Zimbabwean farmers are known to produce some of the best quality of the golden leaf and it will be reasonable if they get incentives to increase production. Local firms should instead of importing blending varieties, contract local farmers. The other option is for TIMB not to issue import licences until all the local produce has been cleared on the market. This means that the country should only import when there is a deficit. It is high time the tobacco industry comes up with a legislation that protects local farmers. One of the TIMB's core functions is to identify markets and link farmers with them. But this process starts with the institution getting involved wholly in the production process- having its own agronomists to work with farmers and in the process make correct yield estimates. This will help in planning for the marketing process and guide TIMB in its selection of buyers for the benefit of farmers. Last season there was chaos during the marketing season as farmers had problems accessing hessian bags which were in short supply. This was caused by inadequate information on the amount of the crop being produced by farmers. The target yield was constantly reviewed upwards showing that the board had not done enough in projecting the total expected tobacco yield. TIMB should also be in a position to offer advice to farmers on what will be taking place on the markets even on the international scene. Farmers require this information for them to plan and know the best varieties to grow considering the available market. It is disheartening to note that some farmers lack knowledge on farming and markets and sometimes end up making the wrong decisions. The case of the 150 farmers from Guruve who were duped into signing contracts that left them with nothing in the end easily comes to the mind. Due to their lack of knowledge, the farmers unknowingly entered into a contract when they thought they were signing up for input aid. These are some of the instances in which TIMB's influence should be felt. The farmers obviously lacked informed advice, which should have come from TIMB if it had personnel on the ground. Enditem