Tobacco rakes in US$445 million
http://www.theindependent.co.zw/
Friday, 22 June 2012 09:50
Gamma Mudarikiri
TOBACCO earnings for the current marketing season have so far earned the
country US$455 million, 45% ahead of sales for the same period last year
which were US$313 million. A total of 122 million kilogrammes have been sold
at an average price of US$3,72 per kg, while sales for the same period last
year were 115 million kg sold at an average price of US$2,72, an 37%
improvement in prices.
Contract sales have realised US$273 million from 75 million kg at a firm
average price of US$3,80 per kg, while 48 million kg have gone under the
hammer on the open auction floors, realising US$172 million.
The average prices on the auction floors have been US$3,61 per kg.
Meanwhile, Tobacco farmers in Africa met in Zambia last week and objected
to proposals by the Framework Convention on Tobacco Control (FCTC) to
stop the cultivation of the crop as development market forces would
not allow this owing to high demand for the leaf internationally.
Tobacco farmers and representative bodies at the meeting, which was
hosted by the International Tobacco Growers Association (ITGA), a lobby
organisation for tobacco farmers internationally, said proposals by FCTC
to ban cultivation of the crop was disturbing, exclusive and going
beyond FCTC mandate.
ITGA Africa region chairman François van der Merwe said FCTC’s original
mandate was to explore research and promote alternative crops in the event
that demand for tobacco globally declines.
“The suggestion that an outside organisation should think it morally right
to dictate what a farmer’s land can and cannot be used for in the pursuit of
his or her livelihood is disturbing to say the least.”
“Market forces will not allow this prescriptive-style to prevail. As long as
there is a demand for leaf, it will be grown,” Francois said.
FCTC’s recommendations include limiting land under tobacco cultivation as
control measure to control use of the crop.
Governments in tobacco growing countries as part of the
recommendations should not provide incentives to increase acreage of
land for tobacco cultivation and with time should freeze the total
acreage under the crop.
Farmers said although there are alternative and staple food crops, such as
maize, tobacco remains a cash crop with high returns compared to any other
crop.
Joseph Wanguhu, who represents the Kenya Tobacco Farmers Association (KTFA)
said he was skeptical about the viability of alternative crops, which
have a market internationally and poorly priced compared to tobacco.