Tobacco Deliveries Remain Firm

Source from:  herald.co.zw Business Reporter 08/13/2007

TOBACCO deliveries remained firm last week as the July 31 early delivery bonus deadline approaches. About 6 million kg have already been sold at the three auction floors - the Tobacco Sales Floor, Burley Marketers Zimbabwe and Zimbabwe Tobacco Auction Centre - compared to 4,5 million kg sold by the same date last year. While other farmers have decided to hold on to their crop in the hope of a new pricing structure or additional incentives, the majority have taken their produce to the auction floors and some have already started preparing for the next season. "I am now selling the last batch of my tobacco and I am happy that I have managed to buy a large portion of my inputs for the next season," a Chinhoyi farmer said. According to the Tobacco Industry and Marketing Board, the average price for a kg has gone up from US$1,26 last year to US$1,91 per kg as of last Wednesday. The seasonal price had also gone up from US$1,12 to US$1,74 per kg. Officials at the three auction floors said deliveries have continued to improve adding that they were expecting deliveries to peak in the next two weeks. Said Mr Lodwin Gatsi, operations manager with TSL: "There is a huge improvement in deliveries and in the next two weeks, we expect to be working at full capacity." Last week Mr Gatsi said TSL had taken delivery of 2 235 bales. "We expect that in the next one or two weeks, we will be laying close to 3 500 bales," he added. Tobacco experts said it was important for farmers to sell their tobacco on time to avoid delays in preparations for the 2007 season. About 52 million kg are expected to go under the hammer, down from 74 million kg sold last year. Enditem