Rusape processing tobacco to promote value addition
An indigenous tobacco contracting company, Voedsel, will set up a multi-million-dollar tobacco processing plant in Rusape this year, in a move that is set to promote value addition of the golden leaf.
This is in line with the Tobacco Value Chain Transformation Plan introduced by the Government last year to grow the tobacco industry to US$5 billion by 2023 through increasing the level of value-added tobacco to 30 percent from the current two percent.
Voedsel’s commercial director Mr Tennyson Hwandi said the processing plant would also boost farmers’ earnings.
“We have purchased the material to set up a tobacco processing plant for the value addition of tobacco. The value of this plant is about US$6 million,” said Mr Hwandi.
“The process involves beneficiating the tobacco from its state into a semi-finished product.
“It also means that there is going to be more earnings for the farmers as we grow the value chain.
“As an indigenous company, we are proud to have achieved this, as this creates new jobs.”
Mr Hwandi said the plant was expected to be operational this year.
“We are already operating at the tobacco auction floors in Harare and all the areas where tobacco auction floors have been decentralised,” he said.
“This investment is going to enhance our operations in Rusape. We have been relying on third parties to process our tobacco, but by processing the tobacco on our own, we will be able to save money and also quicken the exporting of the tobacco to our clients.
“For our farmers, all this is part of the decentralisation strategy for the tobacco sector so that we bring convenience and reduced transport costs for them.” Mr Hwandi said this year, Voedsel contracted 18 000 farmers to grow the cash crop around the country.
“From these 18 000 farmers, we are anticipating to get 25 million kilogrammes that we will supply into the auction floors as well as for export,” he said.
One of the farmers contracted by Voedsel, Mr Wickson Kalanje of Rusape, said the processing plant would be a huge boost to the farmers.
“This is good news because as farmers, all we want is to get the most that we can from our sweat,” he said. “Last year, I was pleased that I sold my crop at good prices. I sold some of my tobacco at US$7 per kg while under contract with Voedsdel.
“This was the highest price recorded at the Marondera auction floors. I am hoping that this year, things will continue to get better.”-herald
