Zimbabwe set for increased tobacco yield – The Financial Gazette
Total exports of tobacco as of September 20 had reached $357 million and will continue until the end of the year.
ZIMBABWE’S tobacco output is expected to increase from the current 252 million kilogrammes (kg) based on the increase in hectarage and registered growers, statistics from the Tobacco Industry and Marketing Board (TIMB) have revealed.
Tobacco grower and export earnings for 2018 have since surpassed $1 billion and Zimbabwe has the potential to earn $1,3 billion from the crop annually. With proper financing and marketing of the product, this can be doubled.
TIMB says that as the planting season is already in progress, seed sales show that growers will be planting about 153 000 hectares, up from 145 000 hectares. The seed sales are expected to increase as dry land planting of the golden leaf commences on October 1, 2018.
The tobacco industry has proved to be key in the economy, with indications being that over three million livelihoods are sustained by the crop. The bulk of the producers are small-scale farmers.
Grower registration as of September 20 show that 124 000 farmers registered to produce tobacco during the 2018/19 season compared to 84 600 during the same period last year.
Officially, the tobacco marketing season ended on July 27, with sales surpassing the country’s all-time high of 237 million kg in 2000.
A few contract sales continued pushing the output to 252 million kg 118 days of marketing. The 2018 crop is valued at $731,2 million, up from 189 million kgs worth $558 million.
The 2018 exports show that South Africa has taken over from China as the biggest importer of Zimbabwe’s tobacco, buying 17,4 million kgs worth $50,3 million. Last year China was the biggest importer of the country’s tobacco, buying 20,3 million kg valued at $161,3 million.
In value terms, China’s prices remain higher compared to South Africa as the neighbouring country is buying the crop at $2,88 per kg compared to China, which buys at $6,91 per kg, increasing the value of exports to China to $114 million.
Total exports of tobacco as of September 20 had reached $357 million and will continue until the end of the year.
Planting of the 2019 irrigated crop kicked off on September 1.