Zimbabwe: Tobacco Marketing Season Ends

Source from:  Financial Gazette (Harare) 08/23/2011

THE flue-cured tobacco selling season is scheduled to close today after 125 days, with indications the country will fail to reach the targeted output of 170 million kilogrammes it had been widely expected to realise this year. Statistics from the Tobacco Industry and Marketing Board (TIMB) show that by day 121, the country had earned US$357,3 million from 131 million kg compared to 118 million kg sold during the same period last year which earned the country US$342,2 million. Contract sales will however continue until further notice. Industry players said volumes could slightly increase during the mop up sales, which at times can be characterised by a stampede due to last-minute efforts to offload the crop by tobacco farmers. "The flue-cured tobacco auctions clean-up sale for 2011 marketing season will be held on September 20, but depending on the volume of deliveries the clean-up may be continued for more than one day, until all delivered tobacco has been sold," the TIMB said. Auction floors this year opened in February with all business being conducted at Tobacco Sales Floor (TSF) while Boka Tobacco Auction Floors was under provisional liquidation. This caused chaos and congestion at TSF with farmers calling for a flawless marketing process next year. However, by the end of the season, three auction floors were open after Boka and Millennium Tobacco Floors (MTF) were lisensed. Estimates from the Commercial Farmers Union indicate that the country is likely to have produced at least 150 million kg of tobacco instead of the projected 170 million kg of tobacco because of a wet spell that affected farmers during the growing season. The season closes with the crop fetching an average price of US$2,74 per kg compared to US$2,91 per kg last year. The country last year earned US$344 million from 123 million kg of tobacco, up from US$174 million earned in 2009. During the current marketing season, tobacco farmers saw their crop being affected by intermittent rains, forcing them to embark on the re-handling exercise which accounted for 21 percent of losses. At the beginning of the selling season, tobacco was selling at prices ranging between US$3,50 to US$4,50 per kg. Of the 131 million kg of tobacco sold, TSF handled 32,2 million kgs valued at US$80,6 million, while Boka sold 15,3 million kg valued US$34,8 million. MTF handled 9,7 million kg valued at US$23,6 million. Contract farmers accounted for 72,9 million kg valued at US$218,1 million. Enditem