Tobacco sales rake in US$57,7million
http://www.theindependent.co.zw/
Thursday, 24 March 2011 19:45
Paul Nyakazeya
A TOTAL of 18,9 million kg of flue-cured tobacco valued at US$ 57,7 million
has gone under the hammer at the Tobacco Sales Floors (TSF) since the
beginning of the selling season on February 16.
TSF is currently the only operating auction floor.
Figures obtained from the Tobacco Industry and Marketing Board (TIMB) show
that the deliveries were 26,33% more than the 14,9 million kg valued at
US$50,2 million which were sold the same period last year from two auction
floors — TSF and Zimbabwe Industry Tobacco Auction Centre (Zitac).
TSF is conducting four sales per day pushing through minimum of 2 000 bales
daily.
Farmers are being paid on the day of sale.
The average price has been US$3,05 compared to US$3,35 last year,
representing a 9,08 percent decline.
Of the 18,9 million kg sold, contract farmers accounted for 11,2 million kg
valued at US$36,3 million. TSF sold 7,1 million kg valued at US$19,9
million.
Wastage is 7,90% compared to 3,08% less than 8,15% the same period last
year.
Analysts said deliveries were expected to increase following the opening of
Zitac yesterday.
TSF this week said it had established offices in different parts of Zimbabwe
for pre-sale bookings. This follows a rise in the incidence of farmers
delivering a crop that had not been booked for sale.
The offices are in Rusape, Marondera, Bindura, Mvurwi, Karoi and Chinhoyi.
Despite this de-centralisation, some farmers still bring their crop to the
auction floor without advance bookings.
TIMB said Zimbabwe’s tobacco output may rise 38% to 170 million kilogrammes
this season, as more farmers have grown the crop as the nation’s
“economic environment” improves.
“Small-scale tobacco farmers currently account for more than half of
Zimbabwe’s output. As production rises, farmers should now focus on
improving quality,” said TIMB.
Zimbabwe earned US$347,8 million from tobacco sales last year, according to
the board which oversees the industry. China was the main buyer, replacing
Western companies that were traditionally the biggest buyers, it said.
Zimbabwe is the world’s sixth-largest exporter of the flue- cured Virginia
tobacco.
It lags behind Brazil, India, the United States, Argentina and Tanzania,
according to the website of Universal Corp., the world’s biggest
tobacco-leaf merchant.