Zimbabwe: Tobacco Output Hits 216 million kg

Source from:  The Herald  09/24/2014

The 2014 tobacco marketing season has ended with the final production figure reaching 216,2 million kilogrammes.

The season ended after the conclusion of the last sales which took place on September 12. At least two contractors had continued receiving tobacco from farmers.

The 2014 season started in mid-February and closed towards the end of July when auction floors closed although contractors continued to receive tobacco until just over week ago

The 216,2 million kilogrammes represent a 30 percent increase compared to 2013 season's total sales figure of 166,5 million kilogrammes.

Earnings for this year were up 12 percent to $685,2 million from $612,1 million earned last year.

Although deliveries and earnings were up, the average price for the season fell 14 percent to $3,17 per kilogramme from $3,67 last year.

The contracted tobacco contributed 165,5 million kilogrammes, which translates to 76,5 percent of the total production for the year, while the balance of 50,7 million kilogrammes representing 23,5 percent of the received crop came from auctioned tobacco.

In 2013 marketing season, contractors contributed almost 68 percent of total production while auction tobacco accounted for 32 percent.

In terms of purchases, Zimbabwe Leaf Tobacco received the most tobacco from both contract and auction sales of 32,5 million valued at $107,6 million that was sold at $3,05 per kg followed by Mashonaland Tobacco Company that received 31,5 million kg worth $95,9 million at $3,04 per kg and Tian Ze, which handled 31,1 million kg worth $121,3 million at an average price of $3,90 per kg.

Other major buyers included Northern Tobacco that bought 29,4 million kg for $108,7 million at an average price of $3,70 per kg and BOOST that handled 19,4 million kg worth $50,3 million at $2,59 per kg.

Contractors are also buyers at the auction floors. There were 18 registered buyers and contractors this season.

Deliveries to contractors were dominated by A2 resettlement farmers who supplied 66,7 million kg worth $244,1 million at $3,66 per kg representing 30 percent market share.

The A2 farmers were followed by A1 resettlement farmers that delivered 42,1 million kg valued at $128,6 million at $3,05 per kg accounting for 20 percent of market share. Communal farmers accounted for 18 percent of market share after delivering 38,4 million kg worth $115,6 million at $3,01 per kg and small-scale commercial farmers supplied 18 million kg valued at $60,03 million representing 8 percent of marketshare.

In terms of auction sales, communal farmers were the pick of the crop after delivering 20,7 million kg worth $56,1 million at $2,71 per kg accounting for 10 percent of market share followed by A1 resettled farmers who received $48,8 million after delivering 18,1 million kg at an average price of $2,70 per kg representing 9 percent of market share.

A2 Resettlement farmers accounted for 4 percent market share after supplying 7,9 million kg for $21 million at $2,65 per kg and small-scale commercial farmers accounted for 2 percent market share after delivering 3,9 million kg worth $10,6 million at $2,70 per kg. Enditem