Auction Floors Work Well But Contract Prices Too Low

Source from:  Tobacco Reporter 03/20/2012

The problems that blighted Zimbabwe's past three flue-cured auction seasons have been dealt with, according to a story in The Financial Gazette. Unauthorized traders who contributed to the chaos and congestion associated with the auction floors have been permanently removed, and there are police posts within the auction floors to deal with any incidences. The four auction floors, Boka Tobacco Floor, Tobacco Sales Floor, Millennium Tobacco Floors and Premier Tobacco Floors, have provided clinics manned by qualified staff and canteens that serve adequate hot meals for the farmers. During a visit by people from the Gazette, most farmers expressed satisfaction with the good marketing environment created by the Tobacco Industry and Marketing Board. They were satisfied with the prices on offer and expressed the hope that those prices would continue to firm as the quality of the delivered leaf improved. A farmer from Hurungwe, Melody Mamire, said the environment had changed drastically and for the good of the farmer. "Over the years we have had to deal with unscrupulous traders, thieves and prostitutes usurping our husbands, and many of us lost money and health along the way," she said. "But this year things are different; we are at peace and fair marketing is prevailing. "There are no traders to influence us and good accommodation has been provided at the floors. "We can plan peacefully without incidents such as theft," Mamire added. Another farmer from Centenary, Spencer Lunga, said farmers did not expect the prevailing situation to change. "If one sells at 0800 hours, by 1000 hours the cheque will be ready for collection," he said. However, farmers complained that contractors were paying them low prices compared to the auction prices. "I sold bales at Tobacco Sales Floor at US$4.90 per kg and the same leaf produced from the same barn sold for US$2.00 per kg," said Juliet Mugadzi, from Inyathi Mine. "This is daylight robbery. Last year, we had to deal with unwanted traders, this year the contractors are taking more than their share. This is not fair pricing by the contractors." Enditem