Zambia: No Market for Tobacco

Source from:  Zambia Daily Mail  07/25/2014

Most independent tobacco traders are stuck with over 741,000kg of tobacco due to lack of market, the Tobacco Association of Zambia (TAZ) has said.

Tobacco sales declined to 8.6 million kilogrammes (kg) between April and July this year from over 12 million kilogrammes the same period.

TAZ finance and administration manager Owen Simukoko said the tobacco sector has witnessed a reduction in sales of the crop due to lack of market.

Mr Simukoko attributes the decline in sales to delays to the late onset of the marketing season and uncertainly on the sale of independent tobacco traders to the market has also negatively affected the sales of the produce of the association.

"The 2014 season has so far witnessed low volumes of tobacco compared to the last marketing season. The first 64 days of marketing, which started in April, up to the week of July, sales have reduced to about 8. 7 million kilogrammes from 12.4 million kilogrammes in the same period last year," Mr Simukoko said in an interview in Lusaka recently.

He also said the global demand for tobacco has reduced due to over-supply of the crop on the international market by various countries which has led to farmers having challenges in marketing their crop.

Mr Simukoko said TAZ jointly agreed with the Tobacco Board of Zambia and buyers that the commodity should be sold through auction system to deal with issue of the crop being in the hands of independent traders. Enditem