Zimbabwe: Tobacco Marketing Kicks Off Amid Mixed Feelings

Source from:  Financial Gazette (Harare) 02/20/2012

The tobacco marketing season officially kicked off yesterday with the first bale selling for US$4,45 per kilogramme at the Boka Tobacco Auction Floors, up from US$4,25 last year. The highest price was US$4,75 per kg with the rest of the crop fetching prices ranging from US$3,25 to US$4,55 per kg. Last year, prices ranged from US$3,50 to US$4,50 per kg. There were, however, mixed feelings over the prices with the majority of the farmers saying the prices were fair for those with small hectarages and bigger yields. Molly Mhembere of Rusape was not happy with the prices as she was expecting prices in the upwards of US$5 per kg. "Input costs, labour costs and the general management of tobacco demands that we get paid a price above US$5 per kg," she said. Berean Mukwende, the vice president of the Zimbabwe Farmers Union, was also not pleased with the opening prices. "The quality this year is good but the price is questionable. We cannot say it's a good price for such good grades; maybe it's a fair price. It's not exciting, it's not encouraging we expected prices above US$5 per kg," he said. It cost between US$3 000 and US$12 000 to produce a hectare of the country's single largest export earner. But Tobacco Industry and Marketing Board (TIMB) chairperson, Monica Chinamasa, was satisfied with both the quality and the opening prices for the golden leaf. "We are still reaping and maybe will start selling next week but so far I am excited; the prices are good prices," said Chinamasa, who also urged farmers to properly handle their crop during reaping, curing and grading if they are to fetch good prices. Her views were shared by Agricultural Marketing Authority chief executive officer, Rockie Mutenha, who described the prices as "reasonable". Four auction floors will be competing for the crop this season to ease congestion and chaos, which reigned supreme last year. These are Tobacco Sales Floor, Boka Tobacco Auction Floors, Millennium Tobacco Floors and Premier Tobacco Auction Floors. All the licensed tobacco floors are required to ensure that farmers have enough security, adequate ablution facilities, waiting areas for growers and banking facilities. Chinamasa said the lead time between the conclusion of sales and payment of growers should be a maximum of two hours. "It is in this regard that all auction floors should have information or computer systems that are compliant with TIMB requirements to ensure speedy payment of growers," added the TIMB boss. For the 2012 marketing season, TIMB licensed 18 class 'A' buyers and 13 contractors. Last year, contract sales accounted for 55 percent of total sales and their market share is expected to increase this year. At least 150 million kg is expected to be sold this year up from 132,5 million kg sold as the season closed in 2011 with the crop fetching an average price of US$2,74 per kg. Enditem