Zimbabwe Could Lose Millions as Tobacco Output Slows

Source from:  The Southern Times 12/18/2015

Zimbabwe could lose millions of dollars as a result of lower tobacco output which has been triggered by low producer prices and massive power cuts that have threatened irrigated crop in most parts of the country. With thousands of farmers opting for tobacco farming, the crop had become one of the country's major revenue earners raking in more than $500 million from raw leaf sales and over $700 million from the export of semi processed crop every year.

But the last two seasons have been characterised by low prices that have seen farmers making losses.

In the opening week of this year's selling season, farmers rioted at the auction floors after the price plummeted to an all-time low of $0,10 per kg from the $4,85 opening price last auctioning season.

Experts say this was because the new tobacco growers, mostly communal farmers, have been found wanting, bringing to the floors lower grade tobacco leaves.

They say these tobacco growers require extension and agronomical advice in planning, training, land preparation and inputs to produce good quality leaf.

The low prices, coupled with the recently increased load-shedding and unscheduled power supply disruptions that have seen some areas going for almost 24 hours without electricity might worsen the situation this year.

And farmers feel this could result in lower yields of poor quality.

Zimbabwe Commercial Farmers Union president Mr Wonder Chabikwa said farmers could suffer more losses considering that irrigated tobacco produces a higher quality crop and the bulk of the total production.

"We were informed of the power supply interruptions due to the decline in Kariba Dam water levels but most farmers had already prepared for the season.

"Although we pleaded with the Zimbabwe Electricity Regulatory Authority, we are not being spared. Wheat and irrigated tobacco farmers have been hit hard and this will affect the quality and quantity of the crop.

"The country is likely to lose a lot of money if the situation continues," he said.

Agriculture, Mechanisation and Irrigation Development Minister Dr Joseph Made recently appealed to Zesa Holdings for lenience on electricity power cuts that are affecting farmers in most parts of the country.

He said his ministry was engaging the Ministry of Energy and Power Development to see how the situation could be improved to save crops under irrigation.

Some farmers use generators to irrigate their crop but this will only increase production costs, leaving farmers who cannot afford it with an option but to irrigate according to the ZESA schedules to make up for the days there is no electricity.

Low export earnings

Tobacco exports still account for more than half of the country's exports with China, South Africa, United Arab Emirates and Belgium being the top destinations for Zimbabwean tobacco.

But with the slowdown in China's economy, demand for commodities has been declining leading to a plunge in global prices.
Tobacco exports to China might suffer in the long run.

Zimbabwe is also beginning to feel the impact of the weakening of the South African rand against the United States dollar.
Total exports to the neighbouring country declined by 37,3 percent in August. This might also mean that tobacco exports could fall in line with demand since imports have become more expensive for South Africa.

While tobacco farming has afforded many the opportunity to increase household income in the short-term and rescue themselves from poverty, the problems that keep cropping up in the sector threaten to plunge them back into their previous situation.
Already, the number of farmers in the sector seem to be declining.

According to latest statistics from the TIMB, 55 486 growers have registered for the 2015/ 16 season compared to 73 044 who had registered in the same period last year.

This might be because farmers are failing to eke out a decent living from tobacco and realise they might need to move to other crops for survival.

In 1999, Dr David Patched, an agricultural economist at the Commonwealth Secretariat, found tobacco production in Malawi and Zimbabwe to be 6,5 times more profitable than maize, twice as profitable as cotton and 60 times more profitable than sorghum.
But this has not been the case for thousands of communal farmers.

Devastating effects to the environment

The problem for Zimbabwe has not ended there, tobacco curing has over the years become the major cause of extensive deforestation countrywide.

Coal, electricity and the associated infrastructure, are beyond the reach of many communal farmers, leaving them targeting indigenous trees for firewood to cure tobacco.

Research indicates that Zimbabwe is losing forests at the rate 300 000 hectares per annum - the highest rate of deforestation in the region.

In 2011, an estimated 46 000 hectares of forest was cleared, and about 1,38 million cubic metres of wood burnt to cure part of a 127 million kg tobacco output.

The figures have been going up since then.

Experts say if communal farmers do not have the cheaper fuel for curing, they might clear the forests before they abandon the crop.

They say farmers must be compelled to embrace corrective afforestation programmes that promote the establishment of woodlots.

Alternative energy sources

For both irrigation and curing of tobacco, the Zimbabwean government could also look for alternative sources of energy that will have a positive impact on both the farmers' pockets and the environment.

Agricultural economist Midway Bhunu urged authorities to invest in solar energy.

"We should invest more in solar for tobacco irrigation and curing, in other countries, irrigations are powered by solar.

"Government can give incentives to solar and reduce traffic on solar products coming into the market for agriculture purposes.

"There is much justification for Government to prioritise tobacco production," he said. Enditem