Tobacco marketing season ends
Last year, the sector produced 198,95 million kg of tobacco earning the country US$584 million.
THE 2016 flue-cured tobacco auction season closes tomorrow after 90 days, with an estimated output above 190 million kilogrammes expected.
The volumes are expected to increase, with contract sales and the mop up sales to be conducted on August 23, 2016.
Tobacco contract sales are expected to continue until further notice.
“The Tobacco Industry and Marketing Board (TIMB) advises that the final day for the 2016 flue-cured tobacco auction sales is Friday August 5, with final deliveries being accepted on Thursday, August 4,” the TIMB said.
“All growers selling through the auctions are advised to complete their grading and baling operations before the final sales day.”
Last year, the sector produced 198,95 million kg of tobacco earning the country US$584 million.
Production was expected to decline by 20 percent following an El Nino induced drought that affected the production of the crop as erratic rains were experienced not only in Zimbabwe but the rest of the southern African region.
The drought caused long dry spells that forced farmers to delay planting, affecting this year’s output.
The industry had targeted 160 million kg but the crop has since surpassed the target by 30 million kg.
Production has been recovering since dollarisation, with the 2013/2014 crop reaching 216 million kg.
Hectarage also declined to 89 500 hectares from 93 419 as farmers feared the low prices that prevailed at the auction floors the previous season would characterise sales this year.
In 2015, farmers protested against prices that were as low as less than US$1 per kg.
Despite farmers still complaining over the price stagnation that has prevailed over the past three to four years, especially at the auction floors were the highest prices failed to go beyond US$5 per kg, many farmers said this season was better than the previous season.
The 2016 tobacco season began on a positive note with firming average prices — the opening price of the first bale was US$4,50 per kg, more volumes passed through the auction system, there were lower bale rejection and more farmers opened bank accounts after the Reserve Bank of Zimbabwe announced that all tobacco would be paid through bank accounts.
Auction floors this year opened on March 30 instead of the traditional opening in February, with business being conducted at Tobacco Sales Floor (TSF), Boka Tobacco Auction Floors and Premier Tobacco Auction Floors.
Statistics from TIMB show that by day 84, the auction floors had 35,2 million kg valued at US$90,4 million at an average price of US$2,94 per kg.
Out of the 81 776 registered growers for the 2015/2016 tobacco season, 72 927 farmers had delivered their crop.
TIMB says 47 500 farmers have registered to grow the crop for the 2016/2017 season, with the planting of the irrigated crop expected to begin on October 1.
With the increasing number of new growers entering the sector each year, Zimbabwe is expected to return to its all-time peak of 236 million kg that was achieved in 2000 if a favourable season in terms of weather is experienced. [email protected]