Bank partners tobacco farmers in $2m irrigation deal
TOBACCO farmers will get over $2 million for irrigation and working capital from Agribank in a major boost for production of the golden leaf.
BY VICTORIA MTOMBA
In an interview yesterday, Agribank chief executive officer Sam Malaba said the bank would support farmers through a partnership with the Tobacco Industry and Marketing Board (TIMB), which identifies farmers on behalf of the bank.
Malaba said $1 million was provided for irrigation and $650 000 for working capital for the 2015/16 farming season.
“We are hoping to double these figures for this season,” he said.
Speaking during a tour of TIMB and auction floors by MPs yesterday, TIMB chief executive officer Andrew Matibiri said the bank and the board were in partnership to provide irrigation equipment for tobacco farmers and $2 million had been earmarked for the process, which will be on a revolving basis.
“We are targeting 1,5 hectares per farmer on a revolving basis. Demand for irrigation is high and we are hoping for more sponsorship. We need to do more of irrigation and grow the amount of tobacco that we require,” he said.
Matibiri said the cost of doing farming in Zimbabwe was high and a local farmer required $2 000 per hectare to produce tobacco at a profit.
So on one hectare, a farmer grosses $4 000 which translates to $2 000 profit per hectare.
Matibiri told parliamentarians tobacco sold to date was 58% up from the same period last year at 48,9 million kg.
The average price for tobacco was $2,35 per kg at the auction floors.
During the 26 days of the tobacco selling season, 87% of bales delivered were sold as compared to 83% during the same period last year.
For the 2016 season, an 18% decline in season registrations was recorded from 96 025 during the same period in 2015.
Matibiri said a total of $244 768 593 was raked in from exports this season so far at an average price of $5,82 per kg.
A total of 42 068 008kg have been sold so far this season.
Tobacco is one of the country’s major foreign currency earners.