Zimbabwe: The Leaf Couldn't Be More Golden!

Source from:  The Herald 02/10/2012

Reports that Zimbabwe's tobacco could be in higher demand internationally bring good news to consolidate the growth that the sector has begun to enjoy in the last few years. That production in Brazil and USA is subdued due to floods this year means that many buyers will look up to Zimbabwe to fill the gap. This naturally translates into higher prices as the forces of supply and demand come into play. We certainly hope that output is as high as anticipated. Last year's average of US$3,36 for flue-cured tobacco is certainly set to be surpassed. What a windfall! The golden leaf couldn't be more golden. The many growers that have decided to join this sector are certainly not regretting. The farmers should be smiling that their hard work will certainly be worth the while. Brazil's production is believed to be down by 150 million while USA has had to revise its figures downwards by 50 million. Zimbabwe is expected to sell at least 150 million kg this year. The tobacco sector, fraught with many challenges that adversely affected production figures, should use this season as an opportunity to consolidate the growth experienced in the last two seasons. Zimbabwe's tobacco is in demand largely for its blending qualities. In the 2010/2011 season tobacco was a major driver in the agricultural sector and the crop has remained as one of Zimbabwe's largest foreign currency earners. The imminent opening of the auction floors is largely expected to be more orderly than before. Usually the onset of the tobacco selling season has been mired by chaos, with hundreds of farmers, both registered and unregistered jostling to sell their crop. The sight that almost became permanent last season at the Tobacco Sales Floor where chaos reigned supreme is something that should be avoided at all costs. That more farmers have joined the lucrative tobacco sector is certainly no justification for the mayhem that has become the order of the day at the auction floors. The numbers can still be managed through prudent booking and registration processes and strict adherence to dates by both farmers and officials at the sales floor. A drive past TSF in Southerton had become difficult last year and the amount of litter, blankets, paraffin stoves all over the place even during business hours is something that should not be repeated. Order must prevail as people sell their crop. Growing, harvesting, curing and grading tobacco has never been an easy process but the dollars at the end of the chain are usually enticing. We are happy that many of our farmers are growing good tobacco but farmer organisations should help ensure strict adherence to registration and booking processes to avoid previous challenges. Riots over pricing and other selling conditions should also be a thing of the past as we expect the new growers and their representative organisations to display a certain level of maturity. This is not to say the growers should be trampled upon but we emphasise that sanity prevail. The agricultural sector in general still remains a major pillar in the economy. Tobacco, as stated earlier, plays a decisive role in the process hence the need to ensure that everything is as smooth as possible, the grower and the merchant should emerge happier after the sales. We hope the Tobacco Industry and Marketing Board is up to speed with developments and has ensured that this season if different from the previous few. We hope the four licensed auction floors - Tobacco Sales Floor, Boka Tobacco Auction Floors, Millennium Floors and Premier Tobacco Auction Floors - have the wherewithal to handle 150 million kg. These need to team up with farmer organisations to educate farmers especially those genuinely ignorant of the goings-on at the floors. In fact, some of these education campaigns should have been conducted earlier on but it is still not too late for the farmers to learn a thing or two and make a difference in this season. We have so many enthusiastic farmers willing to learn although, on the other hand, some have gone into farming for a quick buck. These have learnt the hard way that there is no shortcut in farming. You either have it or do not have it. Farming is serious business requiring total commitment. Moreso for such specialised crops as tobacco, flowers, etc. The current season should also witness a consolidation of the gains of the land reform programme. Of course, it has had its downside but it is the upside of things that we are more interested in, as the negatives get sorted out one way or the other. The 150 million kg anticipated for this season in terms of tobacco is now closer to the 220 million kg that Zimbabwe produced at the height of agriculture a decade or so ago. The potential to reach or even surpass that figure is there. If issues such as grower education, input availability and good pricing, among other things, are in place this country will continue to impact the international tobacco market significantly. China, one of this country's biggest clients, will be seeking to buy more than the 40 million kg it imported last year. Given all the positives around tobacco new growers will need assistance in terms of financial discipline if they intend to stay in the sector for a long time. Reports of impulse buying and farmers being cheated of their hard-earned cash would be a sad way of seeing their sweat going down the drain. We applaud the Zimbabwe Farmers' Union for taking the initiative to encourage farmers to use plastic money which would come in handy at a time when cash sources are constricted. For now we will stand on TIMB chairperson Mrs Monica Chinamasa's word that there will be hassle-free trading at the auction floors. A tour of all the floors by TIMB has shown that all is set for a decent marketing season. We will certainly hold you accountable Madame if anything goes wrong once trading starts. In God I trust! Enditem