‘Tobacco ban a non-issue’

ZIMBABWE’S 2018 tobacco output surpassed the country’s record peak of 236 million kg produced in 2000, with farmers delivering 247 million kg valued at $724 millions. As the season winds down and global calls for tobacco ban grow louder, The Financial Gazette’s Online Editor Paul Nyakazeya (PN) interviewed Tobacco Industry and Marketing Board (TIMB) chief executive Andrew Matibiri (AM) to hear his 2019 projections and strategy. 
PN: This season’s tobacco production surpassed 2000’s record of 236 million, what was the major factor behind the higher output?
AM: There are a number of factors that contributed to the increase in output, which include support from government through the export incentive as well as the Tobacco Input Credit Scheme (TIC) extended by the Reserve Bank of Zimbabwe to the farmers through TIMB. We are glad the export incentive increased from five percent to 12,5 percent whilst the TIC amount has been increased from $28 million to $70 million this season. Some of this money is also going towards efficient curing and irrigation facilities. There has also been continuous improvements in the agronomic practices as a result of farmers training programmes.
PN: We understand that smallholder farmers were major players in this year’s season, what are your views and comments regarding the quality produced?
AM: Our number of farmers increased from 82 000 to 146 000 this season. These were largely small-scale farmers. For small-scale farmers, it has been a journey of learning and growth. Following the land redistribution, production hit a rock bottom low of 36 million kg and has gradually risen to the current all-time high of 250 million kg.
PN: Is contract farming helping the small-scale farmers improve their livelihoods; there have been concerns over high input costs?
AM: Contractors account for over 80 percent of tobacco produced in Zimbabwe. Farmers have numerous options to choose from, which include over 20 contracting companies with different terms and conditions, three auction floors as well as the TIC programme. Farmers should choose a programme they find most suitable for them. Most importantly, farmers should read contracts before appending their signatures. As TIMB, we also go through templates of contracts to ensure farmers are not given raw deals. Of course, once in a while you find bad apples and TIMB, as the regulatory authority, has taken stern corrective action.
PN: Calls for tobacco ban are getting louder, and from the look of things, it may take effect soon. Is Zimbabwe ready for this, considering tobacco is the country’s major foreign currency earner? Is there a crop that can replace tobacco for Zimbabwe?
AM: Zimbabwe is among top five tobacco producing countries, including Malawi and Zambia, which have made responses at intergovernmental levels to the United Nations Framework Convention on Tobacco Control (FCTCs). Zimbabwe is a signatory to the UN FCTC. Our markets are good and our focus and concern is to continue to produce tobacco in a sustainable manner. We would have been worried if we had cases of child labour in the tobacco industry. We are not concerned about the ban…that is the least of our worries.
PN: The increased output in tobacco has brought with it massive deforestation, what measures are you taking to reclaim these forests?
AM: We have the Afforestation Levy which farmers have been paying. It will soon be utilised. TIMB set aside money for afforestation programmes the last two seasons. We have been doing training programmes to discourage cutting down of indigenous trees for curing tobacco. Our response has been multi-pronged. Deforestation is also not only caused by tobacco farming hence there is need for a multi sectoral approach.
PN: How have farmers benefitted from the export incentive?
AM: Farmers received five percent of their gross last season and this season 12,5 percent of their total sales.
PN: What are the major challenges faced by both growers and merchants?
AM: Contracting companies are faced with side marketing as some farmers avoid paying back and deal with other people. We need to cultivate a culture of paying debts in our people. Growers also grapple with cash challenges whilst merchants sometimes are faced with cases of nesting.
PN: Compared to last year, what would say where the major highlights of this season?
AM: Last year was an ordinary year as we produced 188,9 million kg. 2018 is an extra ordinary year as we have achieved an all-time high in the history of Zimbabwe.

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