'Tobacco Growers May Still Meet Target'

Source from:  Business Reporter  06/29/2005

TOBACCO growers may still meet the targeted 250 million kilogrammes for the 2005-6 season despite missing the June deadline for seedbed preparations. Growers have lost out on preparations this month despite the $150 billion support availed by Government through the Reserve Bank of Zimbabwe, with a target yield of more than 150 million kg. Contractors, for example the Zimbabwe Tobacco Auction Centre, have also come up with financial support for farmers, which is expected to yield 60 million kg. Support from the contractors, the $150 billion and yield from farmers using their own resources, could rebound the crop to 250 million kg. Disbursement of the $150 billion through Agribank and the Tobacco Industry and Marketing Board is currently ongoing, a sign that farmers are still preparing seedbeds. For maximum yield, it is recommended that seedbeds be ready at the beginning of June each year to allow for planting in September. Any interruption in this schedule tends to erode total yield. Chairman of TIMB Mr Njodzi Machirori confirmed that the industry had lost out on preparations in June but was optimistic that farmers would make up for the lost time. "We have lost June but we are hopeful that we would make up for the lost time in July. "We have started disbursing the $150 billion to farmers and TIMB is meeting all the input requirements for the farmers while Agribank is looking at capital expenditure," said Mr Machirori. The timing of disbursement of funds to the industry is one of the critical variables in determining the size of the yield next season. A complete rebound of the crop from the lowest volumes of under 70 million-kg has in the past been hindered by late disbursements of funds and shortage of inputs. It was expected that 160 million kg would be realised during the 2004-5 season under Vision 160, but the industry is certain to miss the mark by about a third in the face of revised estimates of 100 million kg. There is an anticipated increase in the hectarage under the "golden leaf" giving optimism for higher yields in the 2005/06 growing season. The irrigated crop accounts for more than 60 percent of the tobacco produced in the country and an increase usually translates to increased production in the coming season. At its peak, the country produced 235 million kg, which accounted for more than 35 percent of the total foreign currency receipts. Tobacco remains one of the country's major foreign currency earners and a drop in production usually depresses the availability of hard currency for critical imports such as raw materials and fuel. Enditem