Tobacco Volumes, Prices Buoyant Despite Strike

Source from:  The Herald (Harare) 05/28/2004

THE tobacco marketing season, which started on a low note both in terms of throughput and prices, is now experiencing improved deliveries and buoyant prices. Tobacco Industry and Marketing Board says the current bookings are almost at 75 percent capacity while the daily average prices are ranging between US$2 per kilogramme to US$2,05/kg. The cumulative mass sold for flue-cured tobacco as at day 36 was 15,1 million kilogrammes with 13,6 kilogrammes having been sold at the auction floors and 1,6 million kilogrammes at contract sales. "The seasonal mass could have surpassed this figure had it not been for the workers' industrial action on the 13th and 14th May 2004 at the auction floors," TIMB said. The daily average price reached an all time high of US$2,05/kg at the auction floors while US$1,95/kg was at the contract sale. Seasonal average price at both auction and contract sales was US$1,94/kg, about four US cents above that of the corresponding period. The seasonal wastage rate dropped from 15 percent earlier on in the season to 10 percent as a result of more favourable prices on the market. Meanwhile, sales at the burley tobacco auction floors that had been conducted for 10 days by May 18 experienced low-grade prices. The cumulative sales were at 82 000 kilogrammes with the seasonal average price at 95USc/kg as compared to 136 000 kilogrammes sold at an average price of US$1,18/kg in 2003. Growers who were complaining of delays at the auction floors were urged to annually renew their registration numbers on time to avoid unnecessary delays when they deliver their tobacco for sale. Tobacco production this year is expected to be around 60 million kilogrammes, a figure below that of last season's 82 million kilogrammes. Despite the expected decline in volumes buyers, however, say the quality of tobacco on the market is better that that of the previous year mainly due to the good rains that fell during the 2003/04 planting season. Enditem