The Sunday Mail
Tendai Chara
The boys – and girls -are back in town! Tobacco farmers, known to splash the cash after selling their green gold, are once again flocking to auction floors as the marketing season started last week.
Although the marketing began on a high note with the first bale fetching US$4,50 per kg, a 28 percent increase on last season’s opening price of US$3,50, those farmers with a low quality crop are threatening to withhold their produce in the hope of getting better returns.
Scrap tobacco is going for less than US$1/kg. Scrap tobacco is a low quality crop from the first reaping.
Mr Wonder Chabikwa, the president of the Zimbabwe Indigineous Commercial Farmers Union, said the marketing season had a false start. “This is a bad start. Farmers were expecting scrap tobacco to fetch something like US$1,50 per kg but this has not been the case. In 2014, scrap tobacco fetched more than US$1,50 and that is what the farmers were expecting,” Mr Chabikwa said.
Mr Chabikwa questioned how scrap tobacco, which he said is blended with high quality grades, could fetch as little as $0,11.
“I am a seasoned farmer and I know that the early primings are low quality and, therefore, fetch less on the market. The current prices are, however, ridiculous to say the least. I know that the buyers make more money from scrap and buying it means they need it,” added Mr Chabikwa.
“I am appealing to the buyers to show compassion. Tobacco production is a long and labour-intensive process. Buyers must realise that farmers are an important element of the tobacco value chain and must, therefore, be treated fairly.” Mr Chabikwa, however, advised farmers not to mix reapings.
“Farmers must not mix different reapings. We have seen some of them mixing different primings and this is not acceptable. They must do their best when it comes to grading if they want to get fair prices,” said Mr Chabikwa.
Zimbabwe has three licensed auction floors; Premier, Boka and Tobacco Sales Floor.
The Tobacco Industry and Marketing Board licensed 16 contractors.
On the other hand, farmers are not happy with the new payment regime which they said inconvenienced them.
A dejected Mr Abel Maromo from Karoi said he preferred cash payments rather than an electronic transfer into his bank account.
“I wanted cash there and there so that I can buy implements and groceries. The requirements to open accounts with banks have changed systems and now we are required to bring our photos. I don’t stay in Harare, all I need is my money so that I can go back to my family,” a fuming Mr Maromo said.
Mr Chabikwa added: “Farmers were not given enough time to open new accounts. The TIMB was flighting adverts in the newspapers advising farmers to open accounts but how many of our farmers buy newspapers every day? Farmers must be given time to open accounts.”
In the past, some farmers fell victim to thieves and conmen after getting cash payments, hence the change to electronic transfers. Mr Paul Zakariya, the Zimbabwe Farmers Union executive director, felt the new payment system was an advancement.
“The new payment regime is actually a positive development. However, some farmers are not happy since the payment regime is causing delays. As we speak, some farmers are stranded after failing to access their payments,” Mr Zakariya said.
The prices, according to Mr Zakariya, were lower than last season’s, and those farmers who did not book in advance to have their crop auctioned were already counting the losses.
“Some of our farmers are not booking in advance and are being manipulated by unscrupulous middlemen. We always tell our farmers to book in advance but some of them do not take our advice.” Mr Zakariya said there were several variables affecting prices.
“The prices are determined by demand and supply. They also depend on the farmers’ relationship with the buyers. We wish that the prices firm so that our farmers will be able to go back to the fields next time,” added Mr Zakariya.
As some of the farmers were mulling plans to stage demonstrations, those with good quality crops were smiling all the way to the bank. Vendors at Mbudzi People’s Market near Boka Tobacco Auction Floors, are happy too and anticipate even better business as the marketing season progresses.
“The time that we have been waiting for has finally arrived. We hope that the opening of the auction floors our sales will gradually increase,” said Miss Anne Rukawo, a flea market vendor.
Volumes of tobacco are expected to be lower this year due to an El Nino-induced drought.
According to the TIMB, more than 160 million kg of tobacco are expected to auctioned this season compared to last year’s 198 million kg worth around US$580 million.
