Tobacco prices are expected to firm in the coming weeks as buyer participation broadens and competition strengthens, Tobacco Industry and Marketing Board chief executive Mr Emmanuel Matsvaire said He noted that subdued participation by some influential buyers had initially dampened early market activity.
While prices reflect a 45 percent decline compared to the same period last season, Mr Matsvaire attributes this to the nature of early-season deliveries.
The initial batches typically consist of lower-leaf primings, which are generally of inferior quality compared to the more valuable upper leaves.
Tobacco is critically important to Zimbabwe, serving as the country’s largest agricultural export and second-largest foreign currency earner after gold.Zimbabwe travel guide
Africa’s largest producer and the world’s fifth largest producer, generates over US$1 billion in annual exports from tobacco.
Mr Matsvaire said, “Generally, prices tend to start lower at the beginning of the season and gradually firm up as the season progresses,” said Mr Matsvaire in an interview.
“This is largely due to the initial delivery of lower re-handled grades and the normal price discovery process in the early days of marketing. However, unlike previous seasons where opening prices were relatively firmer, this year’s auction prices started about 46 percent lower than the same period in 2025 and are currently averaging about 45 percent lower.
“One key factor has been subdued participation by some influential buyers compared to previous seasons, which has affected early market competition.
“As buyer participation broadens and competition strengthens, we anticipate a positive price adjustment in the coming weeks.”
In 2025, tobacco prices initially fluctuated between 4 percent and 11 percent lower than the previous year before recovering late in the season to close with a marginal decline of 0,13 percent.
This price volatility was underpinned by a significant surge in production volumes, which rose from 232 million kg in 2024 to record 355 million kg in 2025, fundamentally shifting the market’s supply-and-demand dynamics.
Latest data released by the TIMB indicates that the national average auction price currently stands at US$1,59 per kilogramme.
Ethical Sales Floor is currently leading the market, offering the highest average price of US$1,82 per kg.
Meanwhile, the Tobacco Sales Floor (TSF) is maintaining a steady average of US$1,58 per kg, while the Premier Tobacco Floor (PTF) follows with an average of US$1,51 per kg. “While our average prices are generally higher than other floors, we anticipate further firming as the season progresses,” said Ethical general manager Tyson Ngongoni.
“We have deliberately deployed seasoned buyers to increase competition and ensure farmers receive fair value for their crop, and we are confident this will translate into stronger prices in the coming weeks.
“We also expect to see improved quality in deliveries shortly, which will naturally drive better returns for the growers. We do prioritise the farmers and we will put all systems in place to ensure fair prices.”
Industry analysts expect the price gap to narrow as farmers begin delivering higher-quality bales in the coming weeks.
They remain confident that as the “heart” of the crop reaches the floors, the overall seasonal average will shift significantly.-herald
