The Sunday Mail
Business Reporter —
THE Tobacco Industry and Marketing Board (TIMB) has attributed the surge in foreign currency earned from tobacco exports this year to high demand of the golden leaf outside the country.
The leap in exports from US$853,1 million last year to US$914 million this year comes at a time when the number farmers dropped to around 82 000 in 2015/2016 selling season.
In the 2014/2015 season, over 93 000 farmers were registered. As at December 16, 2016, Zimbabwe had earned US$914 million from 160,4 million kilogrammes of tobacco exported mainly to South Africa and China.
During the same period last year, 151,6 million kgs of tobacco worth just over US$853 million were sold.
TIMB public relations manager Mr Isheunesu Moyo said: “This year we have witnessed an increase in the tobacco exports revenues due to the high volumes of tobacco which were produced in the country and the demand of the golden leaf outside the country’s borders from September to date.
“What these (local) buyers do is that they buy tobacco and stock until an increase in demand outside our borders. They know that very few countries may still have adequate tobacco stocks.
“The fact that the new selling season is around the corner makes buyers to export their tobacco in large quantities to ensure that the new season comes at a time when they have money to buy new tobacco.”
Demand for tobacco in China is high because there is an estimated 350 million smokers. It is estimated that there are 63 countries that demand locally produced tobacco in the world.
Since January 2016, tobacco earnings have reached over US$1,5 billion, indicating a US$100 million increase from last year’s total tobacco earnings of US$1,4 billion.
Statistics from the TIMB bulletin show that China accounted for over 68 million kgs valued at US$564 million. China has been spending over US$200 million per annum on Zimbabwean tobacco.
South Africa bought 21,2 million kgs of tobacco worth US$64,6 million. The golden leaf is presently being exported to these countries at an average price of US$5,70 per kg compared to US$5,63 in the same period last year.
Other buyers include Bulgaria, Vietnam, Hong Kong, France, Netherlands, Germany, Holland, Sudan and Tanzania. At 201 million kg, the country’s 2015/16 tobacco output surpassed the TIMB’s revised production target of 190 million kg.
Though there was an El Nino-induced drought, there was a remarkable growth in deliveries, beating last the marketing season’s 198 million kg. Total tobacco earnings have significantly risen, with farmers — who have dropped in number from 97 616 to 81 794 in the past year — pocketing more than US$586 million from US$566 million in 2014/15.
Buoyed by last season’s success, tobacco growers’ registration has this year increased by 15 percent to 80 173 from 69 803 tobacco farmers in 2015/2016 season.
The area planted also increased from 50 151 hectares last year to 55 885 hectares this year. Registration of tobacco farmers is currently in progress and from November 1 to December 31, farmers are being charged US$10 registration fee.
Farmers that do not register by month-end risk a US$10 penalty for late registration. From January 1, 2017 the penalty for late registration will surge to US$40 and those that don’t register until the opening of auction floors will be charged a US$90 penalty.
Penalties are designed to encourage farmers to register early as this would give TIMB accurate figures on production levels for a particular year.
TIMB is not closing for holiday as they are expecting more farmers to come during the festive season.
