Tobacco farmers earn US$31.4 million in a week

Tobacco farmers have grossed US$31.4 million from the sale of 11.4 million kgs of tobacco in the first
eight days of the 2022 marketing season, statistics released by the industry regulator show.

About 95 percent of the crop is expected to be sold through the contract and the remainder via the auction system. The fact that nearly all tobacco is contracted calls for the need to come up with local financing mechanisms for the crop.

According to statistics released by the Tobacco industry and Marketing Board on day eight of sales, farmers sold 10.4 million kg of tobacco via the contract system and slightly over 1 million kg through auction.

The tobacco is being sold at an average price of $2.74 per kg, up from $2.50 during the comparable period in 2021.

The tobacco being sold this year was grown under very challenging weather conditions, characterised by a late and false start of the rains, followed by incessant and excessive rains in January causing water logging, nutrient leaching, and disrupting weeding and other agronomic operations.

Prices are expected to be higher this year due to reduced volumes as a result of a bad rainfall season.
This season, the TIMB registered 123 595 farmers to grow and sell tobacco.

Companies registered to sell the golden leaf this season include Tobacco Sales Floor, Boka Tobacco Auction Floors and Premier Tobacco Floors.

Decentralised contract sales floors were opened in five designated tobacco growing districts namely Karoi in Mashonaland West, Mvurwi and Bindura in Mashonaland Central, Marondera in Mashonaland East and Rusape in Manicaland.-eBusiness Weekly