Tobacco mop-up sales end after record season

Elita Chikwati and Mary Muradzikwa, Harare Bureau
Tobacco mop-up sales were conducted yesterday, marking the final closure of the 2018 marketing season which recorded the highest volumes in the history of Zimbabwe.

The auction floors officially closed on July 26 although farmers under contract farming continued to deliver their crop for sale.

Tobacco sales have hit a record 250 million kilogrammes worth $729 million.

The bulk of the crop being produced in Zimbabwe is under contract farming.

Tobacco Industry and Marketing Board (TIMB) statistics show that 214 million kilogrammes worth $631 million were sold through the contract floors, while 36 million kgs worth $98 million was sold through the auction floors.

Mop-up sales were held yesterday to clear all the remaining tobacco that had not been sold.

TIMB corporate communications manager, Mr Isheunesu Moyo, yesterday said the mop-up sales were done at the Tobacco Sales Floor, while other auction floors did not conduct sales.

The 2018 marketing season has been described by many farmers as successful, as they did not have challenges with prices.

Most farmers said the prices were fair, although others still maintain that there should not be a price cap of $4,99 per kilogramme at the auction floors.

For the past years, the highest price of tobacco at the auction floors has remained at $4,99 per kilogramme, while contract floors have registered higher prices. This year, the highest price at the contract floors was $6,25 per kilogramme.

The season started on a slow note as there were complains of Potato Virus Y, while other farmers complained that their crop had been affected by the delays in the onset of the rainy season.

The increase in tobacco production has been attributed to high prices and an organised market, availability of funding through contractors and Government.

The payment of some of the farmers’ incentives in foreign currency also spurred deliveries.

Tobacco has earned a strategic position in the economy because of its contribution to the Gross Domestic Product and foreign currency earnings.

In Zimbabwe, over three million people depend on the industry for their livelihoods.

The land reform programme embarked on by Government in year 2000 has seen more indigenous farmers growing tobacco in a move that has economically empowered them.