Tobacco sales reach 123m kgs
http://www.theindependent.co.zw
Thursday, 04 November 2010 18:48
AN extra 4,4 million kgs of tobacco was sold during mop-up sales which ended
on October 21, figures released by the Tobacco Industry and Marketing Board
(TIMB) showed this week.
The selling season officially ended on September 3 with an output of 119
million kgs.
“The extra 4,4 million kg were sold through mop up sales which were carried
out at various selling points up to October 21,” said TIMB.
According to the figures released on Tuesday, a record crop of 123,4 million
kgs was sold at the just ended tobacco selling season after the mop up
sales. This year’s production is 110% more than last year’s production of 56
million kgs.
“The increase in tobacco output was attributed to an increase in small scale
growers that constituted 80% of the total registered growers,” TIMB said.
“Mashonaland West province had the highest production in the 2010 marketing
season followed by Mashonaland Central. However, about 11 000 small scale
(A1 + Communal) growers in Mashonaland Central produced more than 16 million
kgs, were as close to 12 000 small scale growers in Mashonaland West
produced slightly above 15 million kgs. This means that small scale growers
in Mashonaland Central had a better yield.”
TIMB said the number of tobacco growers had increased over the last decade
from of 8 500 (average 10 hectares each) to over 51 000 growers
(average 1,3 hectares each), of whom about 42 000 (80%) were small-scale (A1
and communal area) growers.
Virginia tobacco was grown on a total of 67 054 hectares, yielding an
average of I 839 kgs per hectare.
“A better yield has been attained this year as a result of good rains which
prevailed in 2010 and aided by timeous availability of inputs,” TIMB said.
During the just ended selling season, merchants offered favourable prices at
the beginning of the season and later reduced their prices after eight weeks
of sales.
When deliveries continued to swell beyond the initial projections of 77
million kgs, prices further dropped from the highest average price of
US$3,49/kg to US$2,62/kg recorded at auction floors.
The season ended at an average price of US$2,88/kg, 10 cents below the 2009
average price.
“The highest price which was paid for good grades during the 2010 season was
US$4,96/kg. The lowest price was 0,10 cents per kg which does not change
every year for tobacco fines,” said TIMB.
The record annual average price of US$3,21/kg achieved in 2008 still stands.
Depressed prices realised towards the end of the 2010 season was attributed
to market forces of demand and supply. The lowest average price was offered
in 2005, US$1,61/kg.
“The average price for the 2011 season may also drop slightly as a result of
increased production world over, due to a predicted surplus output and an 8%
decrease in demand of cigarettes in western Europe,” said TIMB.
Last week, the Agricultural Development Bank of Zimbabwe and FBC Bank Ltd
floated Tobacco Bills worth US$10 million to support tobacco farmers for the
2010/11 season.
Agribank says the money raised will be channeled towards mobilising
financial support for tobacco farmers for the growing, curing and
transportation of the crop to auction floors next year.
Paul Nyakazeya