Tobacco grower profile shifts
http://www.theindependent.co.zw/
Thursday, 03 November 2011 14:46
Reginald Sherekete
TOBACCO output is likely to increase after more communal and small scale
farmers dumped the traditionally preferred maize and cottons crops.
Statistics released by the Tobacco Industry Marketing Board (TIMB) for the
week ending 28 October 2011 show that 4 401 new communal farmers and 5 788
new A1 farmers have registered for the 2012 tobacco season. A1 and communal
farmers now represent 47% and 33%, respectively of total registered tobacco
farmers.
TIMB indicated that registered growers increased by 1 831 to 29 859 this
week, with significant increases being in communal and A1 farmers. This
indicates a 7% increase from those registered in the previous week.
“There is a 10% increase in registered growers compared to last year’s
figure of 27 267 during the same period,” said TIMB in their weekly
bulletin.
The 2011 tobacco selling season failed to meet the projected 170 million kgs
of tobacco and the country is still below the peak season of 236 million kgs
in 2000 before the height of the land reform programme.
The increase in communal and A1 farmers will result in an increase in the
tobacco output, as the country positions itself to produce to its peak
period.
But statistics indicate that there is a relatively low figure of large scale
commercial farmers in the 2011 season who can guarantee a significant
comeback of the tobacco crop to peak levels.
A total of 751 large scale commercial farmers have been registered for the
2011 season representing 3% of total registered farmers. There has been an
increase of 37 new large scale commercial farmers for the 2012 season and
this indicates that the crop may be increased in output next year.
An agronomist with a leading bank said: “The interest to grow tobacco has
been phenomenal due to its attractiveness as a cash crop compared to the
traditional crops.”
“The golden leaf has managed to offer a greater return since it is an export
crop which is sold under auction. This has enabled farmers to get
favaourable prices as compared to the maize crop whose price is pegged by
government,” further explained the agronomist.
Statistics also reveal that Mashonaland West and East had more than 50%
increase in registered communal farmers, with a total of 4 307 and 2 393
respectively. Manicaland and Mashonaland Central have the highest increases
in A1 farmers of 1 800 and 1 720 respectively.
Mashonaland West has traditionally been the hub of maize crop farming but
the trend now shows that farmers in that region are now opting to grow
tobacco. Huge silos for storing grain are visible in the farming area
around Chinhoyi and Lions Den, a sign that the farming region was
traditionally reserved for producing maize.
“Without doubt these statistics are worrying because maize is our staple
food and this trend only indicates that we are far from doing away with
maize shortages. But farmers are also rational businesspeople who seek to
maximise their returns, so there is an urgent need to address the pricing
matrix of maize for it to remain a farmers choice,” an agro-economist said.
From the statistics, 11 newly registered large scale commercial farmers are
from Mashonaland West, with nine from Mashonaland East. This is a clear sign
of the shift to tobacco farming in the provinces.
In the 2011 tobacco season, a total of 132,4 million kgs of tobacco were
sold through both the auction and the contract system, showing an increase
of 7,23% from the 2010 selling season. A total of US$361,5 million was
realised in the just concluded season as compared to US$355,6 million in
2010.
In the 2011 selling season, prices were lower averaging US$2,73, compared to
last season’s average price of US$2,88. Analysts say this is largely owing
to quality and impact of big foreign buyers in the market like the Chinese.
“When the Chinese come into the market, they cause shocks since their huge
demand in a short time causes prices to spike but only to weaken to very low
levels after they exit the market. It’s a market and there is nothing we can
do, farmers should be able to read the market conditions and sell their crop
at the correct market timing,” a tobacco trader said.
Seasonal export figures show that China was the biggest buyer of tobacco
including cigarettes with a total of 33,8 million kgs worth US$245 million.
The United Arab Emirates and South Africa are the second largest importers
of Zimbabwean tobacco totaling 12,7 million and 12,5 million kgs
respectively.
Communal and small scale farmers who are still mastering how to grow tobacco
usually produce a lower quality crop as the methods they use for growing and
curing the golden leaf are not to standard.
In the 2011 selling season a total of 119 201 bales of tobacco were rejected
for various reasons including bales being underweight. This shows a
rejection rate of 7%, which is an improvement from last year’s rejection
rate of 8%.