Zimbabwe: TIMB Dithers on Auction Floors

Source from:  News Day 02/26/2013

THE Tobacco Industry Marketing Board (TIMB) failed to make a decision on the decentralisation of tobacco auction floors during a meeting held last week despite repeated calls by tobacco farmers to do so.

But there is consensus among stakeholders in the industry over the decentralisation matter.

Commercial Farmers' Union (CFU) president Charles Taffs said although decentralisation was ideal, there could be infrastructural challenges.

"We have no problem with the idea of decentralisation as this will benefit the grower, but one of the challenges is infrastructure as it requires a lot of money to run efficiently," he said.

He said the three auction floors handled over 230 million kgs of tobacco in previous years. However, production has plummeted significantly in recent times. Taffs said decentralisation would only be viable if production volumes were upped and profitability ensured.

"The more auction floors we have the more competition we would have, but we need more volumes and cash to support them," he said.
 Taffs said the country should target producing at least 400 million  kgs of the golden leaf.

TIMB chairperson Monica Chinamasa said the decentralisation of auction floors was work in progress and a definite position will be adopted soon.

"There are some processes being followed and after that we will come up with a definite position," she said. "I don't want to come to a conclusion before the processes are completed."

She said the targeted areas included Karoi and Rusape which push huge volumes of tobacco.

TIMB chief executive officer Andrew Matibiri said the issue was an internal matter and the board decision would be communicated next week.

Tobacco Auction Floors managing director James Mutambanesango said the issue was first brought up in 2010, but it was felt the industry was not yet ready to decentralise.

"There are many explanations which were brought forward, how to maintain the tobacco selling system, how the tobacco selling system could be profitable and how tobacco marketing can conform to orderly marketing and still keep the selling of tobacco transparent," Mutambanesango said.

Boka Tobacco Auction Floors chief executive officer Rudo Boka said it was up to TIMB to make a resolution and they will adhere to any position adopted by the industry.

"If TIMB gives the green light we will follow. It is TIMB who decides where and how we operate," she said.

Premier Tobacco Auction Floors managing director Philemon Mangena concurred with Boka saying they hoped TIMB "will come up with a very good model". Enditem