Zimbabwe: Tobacco Deliveries Top 150 Million KG Mark

Source from:  The Herald  06/27/2013

Tobacco farmers have so far earned US$565,6 million from the sale of 153,1 million kilogrammes of tobacco at an average price of US$3,70 per kilogramme since the opening of the marketing season in February.

This represents a 21,3 percent increase from the US$466 million that was earned from the sale of 125,3 million kg at an average price of US$3,72 during the same period last year.

Latest statistics from the Tobacco Industry and Marketing Board show that of the US$565,6 million, US$380,6 million was from contract sales while the balance of US$185 million was from individual sales.

The US$380,6 million from contract sales was generated from the sale of 100,9 million kg at an average price of US$3,77 per kg while 52,07 million kg were sold under individual sales at an average price of US$3,55 per kg. Individual sales are close to surpassing the 2012 seasonal auction output of 52,09 million kg.

Contract sales, on the other hand, have already performed better than the previous season with an output of about 92 million kg averaging US$3,72/kg.

In terms of individual sales, Tobacco Sales Limited has sold the most tobacco amounting to 20,5 million kg which was sold for US$74,1 million at an average price of US$3,60 per kg followed by Boka Tobacco Auction floors with 18,3 million kg that fetched US$64,5 million at US$3,52. Premier Tobacco Sales sold the least amount of tobacco at 13,1 million kg that realised US$46,4 million at an average price of US$3,52.

In terms of production by province, the bulk of the crop amounting to 52,2 million kg came from Mashonaland West, which accounts for 35 percent of the crop, followed by Mashonaland Central with 42,4 million kg representing 28 percent, Mashonaland East with 34,3 million kg representing 22 percent and Manicaland with23,5 million kg accounting for 15 percent.

In terms of deliveries A2 farmers accounted for 34 percent of all the tobacco delivered which translates to 52,5 million kg followed by A1 farmers at 31 percent representing 46,7 million kg.

Communal and small-scale commercial farmers contributed 38,1 million kg and 15,7 million kg, representing 25 and 10 percent respectively.

Meanwhile, auction floors throughput has significantly dropped and now signalling the end of the 2013 selling season. Last year the tobacco marketing season was officially closed on July 24.

The drop in deliveries has triggered concerns that this year's target of 170 million kg was unlikely to be met. Enditem