Gold leaf price discourages farmers

13 Mar, 2016 - 00:03 0 Views
Gold leaf price discourages farmers

The Sunday Mail

Tafadzwa Kadani and Livingstone Marufu
The Ministry of Agriculture, Mechanisation and Irrigation Development and other organisations in the tobacco industry have said the decrease in the number of local tobacco farmers can be mainly attributed to the low prices at the floors.
They say low prices have been the major deterrent factor for most farmers of the golden leaf.
Last year, the cash crop fetched an average price of $2,36 per kilogram and a maximum of $2,47 per kilogram, a real disappointment for farmers who had high expectations.
During previous years, tobacco prices would go as high as $3,58 per kilogram. These high prices had encouraged many farmers to venture into tobacco farming.
However, the dropping prices are not peculiar to the golden leaf only.
Cotton, or the white gold, was also one of the highest paying crops in Zimbabwe and in the world but its price has since dropped to an average of US30c per kilogram.
Tobacco farmers now fear that the golden leaf could be headed for the same predicament.
Therefore the 2015/16 farming season saw a very sharp decline of 34 percent in the number of registered tobacco farmers, especially in the country’s four main tobacco regions — Mashonaland East, West, Central and Manicaland.
Mashonaland Central has 16 831 registered active growers compared to the 23 441 farmers from the 2014/15 season, Mashonaland East has 6 754 from last year’s 12 017, Mashonaland West recorded 19 515 from 27 153 last year and Manicaland has 6 193 from last year’s 12 284.
The number of new tobacco growers also decreased from a staggering 17 048 to 9 103 this year, representing a 47 percent decline.
Deputy Minister for Agriculture, Mechanisation and Irrigation Development; Honourable Davis Marapira mainly attributed the drop in number of tobacco farmers to last year’s prices of the cash crop.
“The prices from last year were not favourable to farmers and this had a direct influence on the number of farmers that registered this year,” Hon Marapira said.
“Of course, the El-Nino-induced drought also contributed to the decrease as those who were not irrigating their crops delayed or defaulted planting,” added Hon Marapira.
As a result of the decrease in the number of tobacco farmers, the amount of revenue that will trickle to Government will inevitably also tumble.
Last year, the golden leaf managed to rake in a total of $867 million. This year, the expected revenue is around $666 million.
Mr Wonder Chabikwa, president of the Zimbabwe Commercial Farmers Union (ZCFU), said farmers, just like anyone else, are in business for profit.
“Tobacco is a capital-intensive business and farmers invest a lot in the process, thus we need a transparent and fair pricing system that will make farmers realise profit at the end of the day,” he said.
“TIMB has to ensure that there is transparency in selling tobacco and also to ensure that there are no cartels robbing the farmers, offering to buy their tobacco out of the auction floors,” Mr Chabikwa said.
Hon Marapira said farmers also have a role to play in influencing the price of the golden leaf.
“Farmers have to practise what is called ‘precision farming’ where they follow all procedures in tobacco farming and at the same time try to maximise their yield per hectare,” said Hon Marapira.
He said farmers can realise 4 000 kilograms or more of the golden leaf per hectare if they follow precision farming, thereby breaking even.
However, Tobacco Industry and Marketing Board spokesperson, Isheanesu Moyo said the number of farmers that are registering is increasing.
“We cannot say the numbers have significantly dropped as we can have farmers registering during the selling process this year,” said Mr Moyo.
My Moyo also encouraged farmers to produce quality tobacco that demands higher prices.
“We encourage our farmers to work hard and increase their yield per hectare and also the quality of their crop as this will have a positive impact on the price. Prices, just like in any other auction, depend on what the buyer offers. Good quality will ensure higher bids,” he explained.
With the El-Nino induced drought upon us, it is high time for farmers to migrate from relying solely on rain-fed agriculture.
“Farmers should start adopting efficient irrigation methods such as drip irrigation. That will also help them realise good yields per hectare,” said Hon Marapira.
Currently, the Government is helping farmers through Brazil’s More Food for Africa Programme that will see many people getting irrigation equipment.
“We are also working on a deal with the Indian government that will see more irrigation equipment being availed to farmers in Zimbabwe,” Hon Marapira added.
TIMB is working on training new tobacco farmers and helping them to access funds through a US$1 million revolving fund.
Hon Marapira called on farmers to seek proper agronomy knowledge from Agritex officers. “As Government, we prioritise educating our farmers. We are also engaging in continuous research,” he said.
Tobacco farming has greatly improved the standard of living for many farmers.
This year, TIMB will run the conventional auction system together with the automated system.
Auctioning of the golden leaf is scheduled to begin on March 31.

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