China Snaps up Zimbabwe Tobacco

Source from:  The Southern Times 08/22/2016

China has remained the top importer of Zimbabwe's tobacco in 2016, figures out this week showed.

The Tobacco Industry and Marketing Board (TIMB) says that Zimbabwe has exported 20.2 million kilograms of the golden leaf valued at US$164 million to Beijing during the 2016 marketing season.

Last year, China bought 19.8 million kilograms of tobacco from Zimbabwe at a value of US$169.3 million, at an average price of US$8.53 per kilogram.

South Africa, Indonesia, Belgium, Russia, United Arab Emirates, Sudan, Egypt, Vietnam and Hong Kong complete the top 10 export destination for the Southern African country's tobacco this year.

"It's really an issue of demand levels. Globally, China is the leading consumer of tobacco. Our local merchants are generally left with China as a market. That's the main reason for such figures," said an agricultural consultant.

"South Africa is also a major consumer in the region mainly due to its regional value chain approach and is now a regional cigar supplier."

In total, Zimbabwe has so far exported 45.1 million kilograms of tobacco valued at US$253.7 million.

China has the world's largest population and has more smokers in the world than any other country. It also accounts for the largest number of players in the tobacco contract farming firms in Zimbabwe.

"Other traditional export markets are advocating for a tobacco ban on health grounds, China is not following this. Chinese people are still smoking in their numbers when others are cutting down," said the consultant.

According to the TIMB, 40 countries imported tobacco from Zimbabwe up from last year's 38 pointing to a growing appetite for Zimbabwe's tobacco globally.

Other export destinations on the list include Singapore, Seychelles, France, Romania, Botswana, India, Namibia, the United States, Korea and New Zealand.

Tobacco is Zimbabwe's top foreign currency earner in agriculture, followed by sugar, horticulture produce and cotton. Enditem