Zimbabwe: Boost Incomes, Rebuild Tobacco Sector

Source from:  The Herald (Harare) 05/12/2004

GREAT stress has been laid in recent months on the need for Zimbabwe to generate more hard currency from exports and to ensure that all such foreign currency is brought into the banking system rather than being traded on either the black or parallel markets. Traditionally tobacco has been Zimbabwe's largest foreign currency earner and, thanks to a very orderly marketing system, it has proved easy to have proceeds from the sale of this crop accounted for. Unfortunately, there has been a slump in production. It appears that some of those who claimed that if they were allocated land under the A2 (commercial) scheme they would grow tobacco were over optimistic. But we do not see any insurmountable problems in restoring tobacco very quickly to the important place it once occupied - and must occupy again - if Zimbabwe's economic growth is to be accelerated. Several countries, including Malawi almost next door and Brazil, produce good crops yet all, or almost all, their producers are small-scale growers. But it will require a concerted effort over the next 12 months by several groups to do the same in Zimbabwe. Seedbeds need to be prepared very soon if a decent crop is to be grown next season and an adequate number of decommissioned tobacco barns must be repaired and re-equipped by the end of the year if that crop is to be properly cured. Tobacco is not that hard a crop to grow. It was grown in Zimbabwe in pre-colonial times and the British colonialists bought tobacco off local farmers for several years for their own needs. The crop must have entered Zimbabwe as part of the trade with the Portuguese. In fact, the colonial farmers knew that tobacco could grow in this country because they could see it being grown. Their contribution was to bring in newer varieties and to introduce flue-curing. The hardest part of production is the initial and final stages: growing the seedlings and curing the crop. Any reasonably competent farmer, so long as he has access to some advice so he is not re-inventing the wheel, can grow a successful crop given the right soil and climate. We believe that a combined effort by the tobacco farmers and various Government bodies can ensure that all who want seedlings can buy these and that finance can be made available to put in a crop. There are many highly skilled farmers who can be contracted to grow the seedlings. Unlike maize seed, tobacco seedlings can be grown on quite small farms, so there is no reason why the successes of the maize seed companies cannot be mirrored in the tobacco industry. These seedlings can then be sold to ordinary farmers, if necessary on credit, and a good crop put in the ground next season. Barns need to be restored. Many of these were damaged when the previous owners removed equipment and some, regrettably, have been used as little more than a brick quarry. Barn complexes can either be leased out or can actually be run by the tobacco companies. Skilled staff for the barns can easily be found in the staff of the old owners. Farmers could bring their crop when it was reaped to the barns for curing, again with the cost of this given as credit. Credit should be easy to manage and repayment almost certain thanks to the central marketing arrangements in Zimbabwe. It is impossible for farmers to indulge in parallel marketing, since there is no other market but the official auction floors. Rebuilding the tobacco industry would be a very fast way of boosting rural incomes and expanding the downstream industries as well as sorting out many of the foreign currency shortages facing Zimbabwe. Since everyone would win, we believe that it is possible to have a combined effort. All it needs is for someone to take the initiative and put the team together. Enditem