Tobacco sales rake in US$279m

TOBACCO farmers have earned US$279 million from the sale of 81,3 million kilogrammes of flue-cured tobacco, as the industry aims to process at least 30 percent of the crop.

The 2025 tobacco marketing season opened on March 5.

According to the Tobacco Industry and Marketing Board (TIMB) statistics, by day 31, farmers had sold 77 million kilogrammes of tobacco worth US$265 million through the contract system at an average price of US$3,44 per kg, while 4,3 million kg valued at US$14,2 million went through the hammer at the auction floors at an average price of US$3,30 per kg.

A highest price of US$6,30 per kg was recorded at the contract floors, while the auction floors maintained the ceiling of US$4,99 per kg.

Meanwhile, 50 million kilogrammes of tobacco worth US$315,2 million have been exported at an average price of US$6,31 per kg.

The Far East continues to be the major destination for the Zimbabwean crop, with the region buying 29,8 million kg of tobacco worth US$240,1 million at an average price of US$8,05 per kg. Countries in Africa imported 7,2 million kg worth US$30,3 million.

The Middle East bought 5.5 million kg worth US$12,4 million, while the European Union bought 4,4 million kg valued at US$23,5 million. The Americas bought 2,3 million kg worth US$7,1 million, while Europe bought 477,200 kg worth US$1,4 million.

Oceania bought the lowest volumes, raising US$241 332 from the sale of 28 560 kg. Oceania, however, offered the highest price of US$8,45 per kg.

Tobacco rakes in more than US$1 billion per year in terms of revenue, but the earnings could be higher if the country processed the crop and exported finished products. Improved production methods and enhanced value addition and beneficiation are the stepping stones towards the attainment of the targeted US$5 billion industry.

Tobacco Association of Zimbabwe President, Mr George Seremwe, said the industry could increase earnings if the bulk of the crop was processed locally and finished goods were exported.

He said the country was exporting jobs and losing revenue by selling raw tobacco.

“With 98 percent of tobacco exports in semi-processed form, Zimbabwe is pushing to process at least 30 percent locally to retain more value domestically,” he said.

TIMB chief executive, Mr Emmanuel Matsvaire, said progress was being made towards promoting value addition of tobacco.“The target was to increase value addition and beneficiation of tobacco into cut rag and cigarettes from 2 to 30 percent by 2025, and to date we have achieved 10,15 percent. Several efforts are being made by Government and private partners to increase value addition,” he said.

According to TIMB, more than 10 cigarette manufacturers are operating in the country with a combined production capacity of around 4,4 billion cigarette sticks per annum. Government has been promoting a conducive environment for value addition of tobacco.

There have been investments in tobacco processing plants in the country to give impetus to value addition from the current two percent of tobacco produced to over 30 percent.

Zimbabwe is among the top five major producers of flue-cured tobacco globally, and the leaf is popular because of its flavour.

Tobacco provides the best economic return per hectare among all major crops.

The tobacco value chain employs more than 1,2 million people, with up to six million dependants.

-heral