Zambia: Tobacco to Fetch KR600m in 2013

Source from:  Times of Zambia  06/03/2013

THE Tobacco Board of Zambia(TBZ) has said the  tobacco  industry is expected to increase value to KR600 million in the 2013 marketing season.

TBZ secretary Samson Muyembe said the industry was expected to produce a volume of 40 million Kilogrammes of all types of tobacco with an expected value of about KR600 million during the 2013 tobacco marketing season.

He said the industry was performing very well, and that it had continued to be one of the most important cash crops in Zambia.

Production levels during the 2012 tobacco season, stood at 35 million kilogrammes valued at KR550 million.

Mr Muyembe said  projections showed that the prices of tobacco in 2013 were expected to improve in comparison to 2012 and other previous years.

He said there was a growing demand  for  Zambian produced tobacco which was attributed to the high quality and flavour of  the  commodity.

He urged farmers to sell tobacco to their sponsors to ensure that they pay back the production loans to the companies which sponsored their production, as there had been recent cases of the side selling tobacco by farmers.

Mr Muyembe said it was encouraging   that  most  tobacco companies were complying with the tobacco regulations  and laws  governing  the tobacco industry.

He  added　that TBZ projected  to reach more than 60 million kilogrammes of tobacco within the next five years.

Mr Muyembe said there was need to increase sponsorship in tobacco production to boost production, thereby creating more jobs, generate household and national income.

"As tobacco production increases, there is need to add value through processing," Mr Muyemba said.

He said TBZ was facilitating the increased tobacco production by attracting investors into the industry.

He said farmers were impressed and happy with the prices of tobacco. In 2013, flue-cured Virginia was selling at an average of about KR17 per kilogramme, while Burley is fetching an average of KR9.

The highest price for virginia flue cured is KR28.10 per kilogramme while that of burley is KR15 as compared to 2012 in which the average price of Burley was KR6.50 kilogramme and that of Virginia was KR15.5. Enditem