Zimbabwe: Tobacco Deliveries Increase As Prices Firm

Source from:  The Herald 04/18/2016

Tobacco deliveries at the auction floors have increased by 66 percent as prices continue to firm, the Tobacco Industry and Marketing Board (TIMB) has said.

Latest TIMB statistics show that by day nine of sales, there was an increase in deliveries from 4,4 million kilogrammes valued at $9,7 million during the same period last year, to 7,3 million kg valued at $16,9 million.

Auction floors opened on March 30 this year.

The statistics also show that the average price has increased from $2,21 per kg last year to $2,32 per kg this year.

Since the opening of the marketing season, the volumes of the crop that has been rejected by buyers has also declined.

TIMB statistics indicate that 8 percent of tobacco has been rejected, a decline from the 15 percent that was rejected last year.

The auction floors have laid out 100 000 bales and of these, 91 742 were sold while 6 714 were rejected for different reasons such as "mixed hands".

So far, the crop has fetched a highest price of $5,60 per kg compared to $5,90 per kg last year.

Zimbabwe Commercial Farmers Union president, Mr Wonder Chabikwa said tobacco grew considerably faster this season compared to last year.

"Temperatures were high, hence the reason why tobacco grew fast. When temperatures are very high, crops tend to mature faster," he said.

Mr Chabikwa said the initial price set from the onset at the official opening of the floors had encouraged and motivated farmers to sell.

TIMB public relations manager Mr Isheunesu Moyo said the high volumes of tobacco deliveries can be attributed to the late start of the season.

"The high volumes are as a result of the season having started late, and many farmers wanting to sell ahead of the Independence holiday as well as the schools opening," he said.

Tobacco is one of the country's major exports. Enditem