The Sunday Mail
Business Reporter —
PREMIER Tobacco Auction Floors is gearing up for the 2017 tobacco selling season after it was granted an operating licence by the Tobacco Industry and Marketing Board together with Boka Tobacco Auction Floor and Tobacco Sales Floor.
Premier Tobacco, whose viability had been subject to speculation over the past season due to obligations in excess of $500 000 to Government and tobacco levies, is now in the clear after successfully settling all its obligations.
TIMB chief executive Dr Andrew Matibiri said they had licensed all three floors — Premier Tobacco Auction Floor, Boka Tobacco Auction Floor and Tobacco Sales Floor, after they had met all their requirements.
“All three floors submitted their applications before the deadline of September 30 and we licensed them after they had met all our requirements,” he said.
“As things stand, Premier Tobacco is up to date with all its payments and has satisfied all our requirements,” he said.
Premier Tobacco, which is the smallest of the three auction floors and is in its fourth year of operations, has been holding its own against the other established floors.
It has managed to gain considerable market share in a short space of time through leveraging on a number of innovative products aimed at ensuring that its main clients, the tobacco farmers, are comfortable and getting timeous payments.
It has also introduced training programs to equip farmers with better skills to grade, present and classify tobacco so that they get good prices at the sales floors.
During the just ended marketing season, Premier Tobacco accounted for 4,7 million kgs worth $12,6 million out of the 35,9 million hectares of tobacco worth $91,2 million that passed through the auction system.
TSF accounted for the larger crop – 23,3 million kgs worth $59,4 million and BTAF handled the balance of 7,8 million kgs worth $19,1 million.
However, in terms of pricing, Premier Tobacco was offering the best average price of $2,65 per kg compared to $2,55 per kg for TSF and $2,44 per kg for BTAF.
