Private firms support key to increase tobacco output: Haritatos

The private sector should come up with initiatives to enhance productivity on farms to complement the Government’s efforts towards improving agricultural performance in the tobacco sub-sector, Agriculture, Fisheries, Water and Rural Development Deputy Minister, Vangelis Peter Haritatos, has said.

Deputy Minister Haritatos said growth in tobacco output was in line with objectives of the recently approved Tobacco Value Chain Transformation Plan aimed at transforming the sub-sector into a US$5 billion industry by 2025.

Speaking at Tian Ze Tobacco Company annual farmers’ awards in Harare last Friday, the deputy minister applauded business leaders in the tobacco industry for their support in the sector.

He said the Government was cognisant of the crucial role the sub-sector plays in the transformation of agriculture and contribution to the realisation of Vision 2030.

“The country greatly appreciates all the efforts to make this vision a reality, and, as mentioned, agricultural transformation and development are at the centre of the transformation jigsaw,” he said.

“It is a known fact that getting agriculture right will subsequently breathe life into upstream industries directly and indirectly linked to the sector.”

He said his ministry initiated a number of blueprints in line with the National Development Strategy 1 (NDS 1) to guide investment into the various sub-sectors. These initiatives tap into the Agriculture and Food Systems Transformation Strategy envisaged to grow agriculture into a US$8 billion industry by 2025 and increase tobacco output to 300 million kilogrammes annually.

This comes as the Tobacco Industry and Marketing Board (TIMB) has set Wednesday March 30, 2022, as the commencement date of the marketing season for tobacco auction floors and March 31, 2022 as opening day for contract floors.

Deputy Minister Haritatos said the transformative clout of tobacco, which is Zimbabwe’s secondlargest single export earner, after gold, was two to four times more powerful than
in any other sector, due mainly to critical value chains in the industry.

With contract farming accounting for the largest portion of the golden leaf, 93,4 percent of total sales, the envisioned success of the Tobacco Value Chain Transformation Plan is hinged on the performance of local players in the sub-sector.

“Much of the growth is anticipated from productivity gains that ordinarily accrue when farmers are properly trained and access affordable inputs timeously, so that planting dates and other critical agronomic practices are met,” said Deputy Minister Haritatos.

He said contracting firms should, however, go beyond affording farmers access to inputs,
but also enhance productivity through producer recognition and reward programmes,
like the ones introduced by Tian Ze.

The country, he said, “is forever grateful” to Tian Ze, for its contribution to the industry, which has seen annual production volumes surging to 260 million kilogrammes.

“Tian Ze Tobacco Company came into the tobacco industry at a time when Zimbabwe was experiencing its lowest tobacco production levels,” said Deputy Minister Haritatos.

“The company introduced interest free loans for its contract farmers and capacitated them with mechanised farming equipment and infrastructure.

“Tian Ze also buys tobacco from other merchants in the industry for export to China.” Winners for the awards, which began in 2020, among them young and upcoming farmers, were recognised in seven categories sponsored by different companies.

Tobacco sales rake in US$404 million Tobacco export earnings up 13pc To
JB Campbell (Pvt Ltd), trading as Sambok Farm, won the overall best achiever award,
while the sustainable farming practices award went to Kerry Ruzvidzo. The Best Yield
Award was scooped by Stuart Tippett, and Aaron Denenga walked away with the top prize
in the best quality category.

Other winners were FT Martins, Cuthbert Mzerengi and Butler Farms for best grading
and presentation, most improved, and best commercial effort, respectively.

Tian Ze Tobacco Company managing director, Wang Hua, said despite setbacks caused by
the Covid-19 pandemic, mostly in the past two seasons, contracted farmers remained
committed to ensuring the production of high quality tobacco which is in high demand
on the global market.

“To meet the requirements of our major customer, which is China Tobacco, Tian Ze
needs high performing growers to produce the desired Chinese style tobacco,” he said.
“We cannot achieve this alone without the help of our farmers. As a contractor, we will
continue supporting our growers through loans to produce the crop, as well as
developing their farms.”

Mr Wang called on all stakeholders in the industry to pull in one direction, saying his
company believes in continual improvement, and is, therefore, committed to create a
culture of total quality in sustainable tobacco production.

JB Campbell director, Thomas Wood, said they were grateful for being awarded the
highest accolade for their tobacco contract farming endeavours at Sambok Farm through
Tian Ze.

“We have been contracted to Tian Ze for over 15 years now, and each year we have
progressively developed,” he said.

Mr Wood said through Tian Ze’s support they were able to produce world class tobacco
crop on their 225-hectare farm in Marondera, under irrigation, thus mitigating the
impact of climate change. They also constructed a 4 000 megalitre dam on the farm last
year.

“We understand that this is the largest privately owned dam to be built post-2000,” Mr
Wood said. “This could not have been possible without the financial assistance from Tian
Ze, who assisted us with a loan which covered about 20 percent of the total cost.”

He also applauded the Ministry of Lands, Agriculture, Fisheries, Water and Rural
Development for the assistance offered in the construction of the dam after they initially
faced challenges in acquiring the requisite documents.

Mr Wood, however, bemoaned the significant rise in the cost of tobacco production in the
past year, saying it has sparked fear among the crop’s growers countrywide as they
contemplated the viability of growing the golden leaf.

Aaron Denenga, who won the Overall Best Achiever Award last year, said his recognition
in the Best Quality category testified to the farm’s diligence in pursuit of a superior leaf.
“For any tobacco farmer the one thing that you want to produce is a yield of high quality,
because it is quality that determines price. So, coming out with an award for best quality
shows our team’s commitment to deliver a leaf that meets the highest global standards,”
hesaid.

Takura Dzimwasha, the managing director for Momentum Insurance Brokers, who
sponsored the best quality award, encouraged farmers to insure their tobacco crop
against losses that may be caused by natural vagaries like hailstorms.-The Herald