Zimbabwe: All Set for 2012 Tobacco Marketing Season

Source from:  The Herald 02/15/2012

ALL is set for this year's tobacco marketing season, which kicks off tomorrow, bringing hope for fresh capital injection into the economy. There are high expectations of a successful season as the Tobacco Industry and Marketing Board has licensed four auction floors to operate this year - Boka, Tobacco Sales, Premier Tobacco and Millennium Tobacco Floors. This is expected to ensure stiff competition which should benefit tobacco growers in terms of service and elimination of the chaotic scenes that characterised the beginning of last season which opened with only TSF floors operating. As of last Friday all four floors had received an average of 600 bales each, although the figures are expected to be significantly higher by the end of today. The TIMB has set a planning target of 150 million kg for this year's crop, although a more accurate target would be announced in due course. Crop assessments so far have shown that, to date, 56 369 hectares have been established but the figure is expected to rise to around 80 hectares once the assessment being done across the country are complete. Sixty-six thousand growers were registered this season and of these 34 734 have registered with the TIMB to sell their tobacco while 49 percent are yet to do so. At least 80 percent of growers on the tobacco register are small-scale farmers while 12 803 growers have registered to sell the golden leaf for the first time. TIMB chief executive Dr Andrew Matibiri said everything was now in place except for deliveries that were still coming in. "We have made significant progress in ensuring that we have a successful season and as for the target most of the crop is still in the field. We are receiving some rains, and will only have a figure in due course," he said. Dr Matibiri said farmers could this year expect better prices than before, following adverse weather conditions in the major tobacco-producing nations - the USA and Brazil - which is expected to reduce yields. "The crop in Brazil was affected by adverse weather patterns while the American crop was affected by hurricanes and tornadoes," he said. By early this month, all four tobacco floors had managed to meet some of the critical requirements set by the TIMB, which include the provision of ablution, banking, health, canteen, accommodation and waiting facilities and security. Meanwhile, Zimbabwe Farmers' Union chief economist Mr Prince Kuipa said farmers were ready to deliver their crop to the auction floors, particularly that planted under irrigation. "The crop has been harvested and processed and now awaits the opening of the tobacco sales floors. We have done an assessment of the floors and they are also ready. "We are expecting a good turnover during the first week of the opening of the selling season next week," he said. Mr Kuipa said the union was satisfied with the new registration system adopted by the sales floors to ease congestion. But he said the shortage of cash being experienced at the banks would be a challenge to the farmers as some of them, especially small-scale, did not have bank accounts. "Issuing cheques to these farmers becomes a challenge for them to access their money quickly because they will need to open accounts and the processing of cash takes several days," he said. Tobacco production has risen from an all-time low of 48,8 million kg in 2008 to 60 million kg in 2009 when it was buoyed by the adoption of multiple currencies and favourable prices at the floors, 123 million in 2010 and 132,5 million kg last year. Tobacco prices last year hovered around US$3 to US$4 per kg with the highest hitting an all-time record of US$5 per kg. - Business Reporter/New Ziana. Enditem