Zimbabwe: Tobacco Exports Rake in U.S.$769 Million

Source from:  The Herald  12/04/2013

FLUE-CURED tobacco exports have raked in US$769 million this year from the sale of 137 million kilogrammes of the crop, as China continues to be the major buyer. This is an increase from the US$720 million that was generated from the sale of 118 million kgs of tobacco during the same period last year.

Latest statistics from the Tobacco Industry and Marketing Board indicate that this season, prices were depressed with the crop averaging US$5,59 per kilogramme down from the US$6,12 per kg offered during the corresponding period last year.

Zimbabwe exports its semi-processed tobacco to 50 countries including Belgium, Britain, the United States, the Netherlands, Turkey, Hungary and Switzerland.

China, South Africa and the United Arab Emirates have continued to top the export market list, while Japan has remained the highest bidder offering US$10,03 per kg, with Ireland and Hong Kong offering US$9,24 and US$8,36 per kg respectively.

TIMB chairperson Mrs Monica Chinamasa said Zimbabwe was losing substantial amounts of money by continuing to trade in raw leaf.

"The question we need to be asking ourselves is how best can we use the example set by tobacco growers most of whom were faced by more daunting circumstances than that faced by manufacturers, to create sustainable value chain linkages," she said.

"Is it not possible to link the growth of tobacco production to the enhancement of capacity of cigarette manufacturing locally."

Mrs Chinamasa urged Government to play a key role to assist upcoming entrepreneurs to explore opportunities in the value addition process of tobacco.

Tobacco production has been increasing over the past years due to the favourable prices being offered by buyers. Enditem