Zimbabwe: Tobacco Farmers Expect Better Prices This Season

Source from:  The Herald 02/15/2016

Tobacco farmers said they expect better prices this season due to the decline in production as a result of drought, but the surviving crop being of high quality. There has been low production this season with the area put under tobacco declining compared to the same period last year. Tobacco Industry and Marketing Board statistics show that last season, farmers planted 107 546 hectares of tobacco while this season farmers planted 92 160 hectares. Zimbabwe Commercial Farmers Union president, Mr Wonder Chabikwa said farmers were expecting firmer prices this season basing on the economics of supply and demand.

"We are expecting a reduced tobacco crop this season due to poor rains and low prices offered at auction floors last year. Drought has contributed to the reduction of the crop. We also hope the use of the e-auction system will bring in order, which may weed out class B buyers who contributed to poor auction prices," he said.

Tobacco Industry Development Support Institute executive director, Mr Jeffrey Takawira said rains came late this season and the crop was affected. "There is a high likelihood that this year's tobacco volumes may be less than last season. However, it does not necessarily follow that there will be an increase in the price of tobacco at the auction floors.

"Price is usually determined by quality and demand," he said. TIMB chief executive Dr Andrew Matibiri confirmed that there could be a high demand for Virginia tobacco this season and said although the season was bad, the quality of the crop remained good.

"The irrigated crop was not affected by the low rains and we expect a high quality crop. Some of the dry land crop was affected by the dry spell but recovered after the November rains.

"As TIMB, we feel there may be higher demand for the crop considering that some of the competing countries do not have a big crop this season," he said.

Dr Matibiri said Brazil which was one of the major producers in the world had its crop affected by floods and this reduced the crop size. "Tanzania has a smaller crop while Zambia and Malawi have not changed production. Zimbabwe still remains the major tobacco producer in the region," he said.

The TIMB is yet to come up with dates for opening of the 2016 tobacco selling season but most farmers have started reaping and curing their crop in readiness for the market.

TIMB is still in the process of making crop assessments to allow for adequate preparation for the market. The board will this season switch from the conventional auction system to the new automated system to reduce issues of side marketing and illegal sales. Enditem