Zimbabwe: Tobacco Selling Season Nears End

Source from:  News Day  06/28/2013

THE Tobacco Industry and Marketing Board (TIMB) is moving towards announcing the closing date for the 2013 tobacco selling season as deliveries of the golden leaf decline, an official has said.

TIMB chief executive officer Andrew Matibiri, however, said the responsibility of announcing the closing date for the tobacco auctioning season lies with the stakeholders.

Major players in the industry include auction floors, farmers and merchants.

"It's up to the stakeholders to say when the closing date is. No date has been set as yet, but we are now looking into it considering that tobacco deliveries are now very low," Matibiri said.

The board announced at the beginning of the year that this year's selling season would be shorter as compared to previous years.

According to the TIMB weekly tobacco report released on Tuesday, the auction floors throughput has significantly dropped and that was now signalling the end of the 2013 selling season.

"Auction floors throughput has significantly dropped, signalling the end of the 2013 selling season. Last year, the tobacco marketing season was officially closed on the 24th of July," reads the report.

In 2011, the season lasted for about 126 days, while in the following year, in 2012, the season was 144 days long.

The tobacco board, however, said this season's performance was better as compared to previous ones. Tobacco delivery has been on the rise as noted that in 2010, deliveries reached 119 million kg worth $346,1 million, while in 2011 deliveries surged by 14 million kg to reach 133 million kg worth about $360 million at the close of the season.

Last year, they rose by a further 11 million kg to reach 144 million kg at a value of about $530 million.

"At 52 079 065 kg the current cumulative auction sales are close to surpassing 2012 seasonal auction output which recorded 52 092 945kg.

"However, contract sales have already performed better than previous season and currently continue to dominate the market with cumulative sales recording more than 100 million kg averaging $3,77kg," the TIMB weekly report read.

Figures availed by the TIMB show that tobacco sales for the last 90 days of the ongoing marketing season increased by 21% to generate $567 million in revenue earnings compared to $469,2 million recorded during the same period last year.

During the period under review, a total of 153,4 million kg of tobacco have been sold, indicating a 21,54% surge from 126,2 million kg in 2012.

The golden leaf was being sold at the three participating auction floors, Tobacco Sales Floor, Boka Tobacco Auction Floors and Premier Tobacco Floors at an average price of $3,70 per kg.

In the period under review, a total of 2 080 702 bales were laid while 89 970 were rejected for various reasons.

TIMB figures also showed that 235 396 kg of burley tobacco has generated $354 363.

The crop, which has attracted few farmers, was being sold at an average price of $1,51 per kg.

TIMB projects that at least 170 million kg of the golden leaf will be delivered at the country's auction floors as the crop maintains its position as the second top foreign currency earner after mining. Enditem