Tobacco Industry Players in Bid to Restore Viability

Source from:  Financial Gazette (Harare) 05/31/2004

PLAYERS in the tobacco industry will next month hold an exposition at the Harare International Conference Centre as part of efforts to restore viability to he sector, which has been in decline. The Tobacco Expo, which will be held from June 9 to 11, is an initiative of a local company, Sirmad (Private) Limited, based at the Tobacco Sales Floors in Willowvale. Sirmad director Plaxedes Gutsa said the main objective of the expo is to create a symbiotic relationship among the growers, contractors, suppliers, financial service providers, technical and research services companies, the Tobacco Industry and Marketing Board (TIMB) and associations that are involved in the production of the golden leaf. "There are many changes that have taken place in the industry which dictate the need for such a get-together. Growers need to fully understand the tobacco contracting system recently introduced by the government. A sizeable number of the new growers would greatly benefit from interacting with all stakeholders in the industry under one roof," she said. Tobacco output is expected to go down by 22 million kilogrammes this year from 82 million kilogrammes last year because of viability problems faced by the new farmers such as the lack of inputs, financial constraints and improper management skills. This is despite a two-fold increase in the number of tobacco growers to 30 000 over the past two years. The contract-growing scheme, where tobacco merchants fund farmers and the crop is sold to the merchants, has not been successful due to the shortage of foreign currency and the late entrance of the merchants into the scheme. Gutsa said the stakeholders would receive a catalogue with the products and services and details of all aspects of the industry during the expo. The country has managed to maintain a good quality crop because of favourable growing conditions following good rains for the 2003/04 season. Zimbabwe has been a major exporter of the golden leaf to the European Union, Far East and the region although the crop has faced a remarkable decline in the past four years due to the government's sometimes chaotic land reform programme. Enditem