Zim Needs $223m for Tobacco Crop

Source from:  business.iafrica.com ZIMBABWE AFP Thu, 06 Apr 2006 04/07/2006

Zimbabwe needs more than $223-million to finance its once-lucrative tobacco crop, the state-run Herald said Thursday. "The next tobacco crop requires funding to the tune of Z$19-trillion (US$191.5-million, €155-million) and a foreign currency component of US$32-million," the report said. Once the largest foreign exchange earner after gold, Zimbabwe's "golden leaf" has fallen on hard times recently, blamed by economists on Zimbabwe's contentious land seizures, drought, and a lack of foreign currency and fuel. Tobacco has seen a drop in production and quality over the last five years, and it is estimated that this year's crop will come in at 47 to 50 million kilograms when auction floors open on April 25. Output rebounded to 73 million kilograms last year after dropping to 64 million in 2004, but was still a far cry from the record 237 million kilograms of tobacco moved off the auction floors in 2000. Violent land seizures Economists say that Zimbabwe's often violent land seizure programme, which started in 2000, had a major negative impact on tobacco production. Some 4000 commercial farms were seized, at least 17 of them large-scale tobacco producers. But Agriculture Secretary Simon Pazvakavambwa painted a more optimistic picture to a parliamentary portfolio committee. "If necessary funding is in place on time, forex for inputs made available on time, viability addressed, rebounding of the industry can be much quicker with tobacco assuming once again, its rightful role of being the leading generator of forex and the driver of the economy," he said. But he added that "...although growers were entitled to access 15 percent of their US dollar tobacco proceeds for importing 2005/2006 inputs, only a few large scale growers benefited from this facility due to forex unavailability." The next tobacco farming seasons starts in August. Enditem