The Sunday Mail
The Tobacco Industry and Marketing Board’s announcement that the tobacco auction floors will be closed early this year has been criticised by farmers who were still holding on to their crop in anticipation of higher prices in September.
Fears abound that there will be long-winding queues at the floors next week as the farmers are likely to flock the floors to sell their crop before the end of June closure.
Last week, TIMB issued a statement stating that the 2014 flue-cured tobacco selling season at all the three auction floors would close at the end of this month instead of the usual month of September.
TIMB chief executive officer Dr Andrew Matibiri confirmed the early closure.
“The flue-cured tobacco marketing season will close on Friday June 27 2014 with final deliveries accepted on Thursday June 26. All growers who sell on auction floors are therefore advised to complete their grading and bailing operations by Wednesday June 25 at the very best. Most farmers have delivered their crop and we are confident that the tobacco deliveries will surpass 200 million kg,’’ he said.
According to the TIMB, the early closure has been prompted by the reduction of deliveries in recent weeks at all the three floors. However, deliveries are still pouring in at contract floors and therefore, only those selling through contract will continue delivering.
The Sunday Mail travelled to Beatrice and discovered that some farmers had opted to hold on to their crop as they had anticipated better prices around August and September.
“I still have tobacco in my grading shed as I slowed down the grading pace due to the discouraging prices. Imagine out of the 70 bales I sold so far I only earned myself less than $20 000 though my crop was of good quality. I only sold for $3,50 a kg,’’ said Mr Elisha Tungwarara regrettably.
He said his remaining crop would likely give him about 100 bales.
“Last season I delivered my last crop in September and sold for $4,99 a kg,’’ he said.
Another farmer, Mrs Daisey Masaraure, is facing the same predicament.
“So far, I have sold 20 bales with prices ranging from $1,20 to $3,89 a kg. I am a seasoned tobacco farmer but this year I was really disappointed by the low prices that prevailed at auction floors. I hope next season will be different,’’ she said.
She said the news of the early closure of floors had caught her unawares.
“I do not know whether this is going to see prices go up considering that most of those who had stocked for September will be forced to deliver all their crop at once next week. This is likely to see more long queues re-surfacing at the auction floor,’’ she said.
Zimbabwe Commercial Farmers’ Union president Mr Wonder Chabikwa said TIMB should be flexible and consistent in coming up with closure of auction floors.
“There is need for TIMB to inform farmers on time so that they are not caught unawares. Right now some are busy with their winter cropping preparations after shelving grading the last tobacco which they expected to deliver end of September,’’ he said.
Mr Chabikwa said while the 2014 season had seen an increase in the total tonnage sold compared to last season, farmers were disappointed with the low prices at the floors, a situation that could see the number of growers decreasing during the 2014/15 farming season.
In the 2013/14 season, more than 90 000 farmers registered to grow the golden leaf with 70 percent of them in contract farming.
Statistics from the TIMB show that 194 million kilograms of the crop worth $619 million had been sold by last Friday since the selling season opened in February. This is a 32 percent increase from the 147 million kilograms worth $543 million sold over the same period last year.
The average price at auction floors has remained at $4,99 a kg for the fourth consecutive year while at contract floors, prices have been fluctuating from $5,99 last season to the current $6,15 a kg. This huge difference has prompted most farmers to go the contract way.
