Zimbabwe Tobacco Prices Continue to Firm

Source from:  The Herald 03/07/2012

TOBACCO prices have continued to firm since the opening of the tobacco-selling season last month, which has boosted the prospects of a better marketing season this year. The seasonal average price for auction is US$3,64 per kilogramme, which is nine cents firmer than the contract price. According to the Tobacco Industry and Marketing Board, the current prices are more favourable than those achieved during the beginning of the last selling season. There was an increase in tobacco deliveries last week as more growers have finished processing their crop and the good prices being offered at the floors remain an attraction for farmers. The top quality leaf was bought at an average price of US$4,71 per kg, medium quality leaf US$4,22 per kg, and low quality leaf at US$3,31 per kg. Top quality tips have been sold at an average price of US$4,71 per kg while prices for low quality tips averaged US$1,58 per kg. Lugs have been selling at an average price of US$4,50 per kg, US$3,71 per kg and US$2,44 per kg for top, medium and low qualities respectively. Top quality primings were sold at an average price of US$4,41 per kg, top quality cutters at US$4,55 per kg and good scrap at US$1,58 per kg. So far the lowest average price offered since the opening of the season is US$1,07 per kg which was offered for poor scrap. Farmers have expressed satisfaction at the prices being offered at the floors and remain optimistic that he prices will continue to firm as the quality of the leaf improves. Hurungwe farmer Mr Amos Jeke said the current prices were viable and would enable farmers to go back to the land. "We are happy with the quick processing of the transactions. We are able to pay transporters and hopefully things will not change for the worse this season," he said. Another farmer, Mrs Memory Marimire, said this year buyers should not sabotage farmers. "We are afraid buyers may run out of cash and start offering low prices. There should be competition and we should be rewarded for our efforts in producing the crop," she said. Premier Tobacco Auction Floor managing director Mr Philemon Mangena said so far the selling of tobacco had been progressing smoothly. "Banks have enough cash and they are paying farmers promptly. We are making it a point that we attend to all farmers by 2pm everyday. "We do not expect things to get out of hand as happened during the past seasons where farmers would sleep over at the auction floors waiting to get their money," he said. He said farmers were just like any other business people whose rights had to be protected. "Farmers have the right to withdraw their crops if they do not agree with the prices they have been offered at the auction floors," he said. Tobacco production has been on the increase for the past few years with a total of 150 million kilogrammes expected to go under the hammer this selling season. Zimbabwe is slowly regaining its status as one of the major tobacco producers in the world. Enditem