Business Reporter —
The Tobacco Industry and Marketing Board (TIMB) has licensed all three tobacco auction floors that operated last year for the 2017 marketing season.
The move is a boost for both permanent and casual employees that have been benefiting from the growth of the tobacco industry.
TIMB chief executive Dr Andrew Matibiri confirmed that they had licensed all three floors Premier Tobacco Auction Floor, Boka Tobacco Auction Floor and Tobacco Sales Floor after they had met all their requirements.
“All three floors submitted their application before the deadline of September 30 and we licensed them after they had met all our requirements,” he said.
On Premier Tobacco, whose viability had been subject of a lot of speculation due to obligations to Government and tobacco levies over the past season, Dr Matibiri said it had cleared all its arrears.
“As things stand Premier Tobacco is up to date with all its payments and has satisfied all our requirements,” he said.
Premier Tobacco, which is the smallest of the three auction floors, has been holding its own since it began operating four seasons ago.
Despite its size it has managed to grow its market share through the introduction of a number of innovative products to lure the farmer as well as ensuring timeous payments to its clients.
Last season it also embarked on a programme to equip farmers with better skills to grade, present and classify tobacco so that they get good prices at sales floors.
During the just ended marketing season out of the 35,9 million hectares of Virginia tobacco worth $91,2 million that passed through the auction system it handled 4,7 million kg worth $12,6 million, with TSF accounting for the larger crop 23,3 million worth $59,4 million and BTAF handling the balance of 7,8 million kg worth $19,1 million.
However, in terms of pricing Premier Tobacco was offering the best average price of $2,65 per kg compared to $2,55 per kg for TSF and $2,44 per kg for BTAF. Meanwhile, a total of 71 438 farmers have registered to grow the crop this season with at least 33 494 being communal farmers.
At least 14 600 hectares have been put under tobacco as at the end of last week, down from 15 308 hectares planted during the comparable period last year.