Zimbabwe: Tobacco Farmers Earn U.S.$4,9 Million

Source from:  The Herald  02/27/2014

TOBACCO farmers have so far earned US$4,9 million after the sale of 2,05 million kilogrammes of flue-cured tobacco since the season began last week. According to the latest figure released by the Tobacco Industry and Marketing Board, the tobacco was sold at an average price of US$2,42 per kg. This is marginally lower than the US$6,1 million that was earned from the sale of 1,9 million kg at an average price of US$3,25 per kg during the same period last year.

The tobacco selling season got off to a slow start this year as most farmers have been rejecting prices offered at the auction floors. The impasse over prices has seen some farmers withholding their crop accusing buyers of colluding to buy their tobacco for a song.

TIMB licensed 20 auction floor buyers this season compared to 15 last year, however, its understood that not all buyers are active. Of the US$4,9 million, 3,7 million was realised through the auction system after the sale of 1,5 million kg at an average price of US$2,38. The balance of US$1,2 million was received after 475 372 kg were sold under the contract system at an average price of US$2,56.

Of the 1,5 million kg sold under the auction system, 774 368 kg worth US$1,9 million was sold at Tobacco Sales Floor, 465 281 kg worth US$1,1 million was sold at Boka Tobacco Floors and 731 371 kg worth US$342 680 at Premier Tobacco Floors. A total of 28 658 bales have been sold under the two systems so far this season compared to 23 319 last year.

At least 22 268 bales have been sold under the contract system while 6 390 has been sold under the contract system. Auction sales opened on Wednesday last week while contract sales started a day later while the country largest contractor Mashonaland Tobacco Company, which has three floors in Rusape, Mvurwi and Karoi started on Monday At least 185 million kilogrammes of tobacco are expected to go under the hammer this season up from the 166,6 million kg sold last year. Enditem