The Sunday Mail
THE Tobacco Industry and Marketing Board (TIMB) is confident that deliveries of the golden leaf in the current marketing season will top 175 million kilogrammes (kgs) from the initial target of 160 million kgs, as deliveries from farmers have quickened in recent weeks.Total revenues generated from deliveries in the four trading days between Friday June 10 and Wednesday June 15 rose by more than $24 million from $356 million to $380 million.
TIMB communications manager Mr Isheunesu Moyo said the Board forecasts that deliveries will be more than anticipated.
“With the current rate, we are now confident that farmers will reach more than 175 million kilogrammes this season.
“Though there are some problems of cash in the country, the tobacco industry is one of the most liquid sectors, if not the most liquid, at the moment.
“The statistics are there for people to see. In the last few days, millions found themselves in the pockets of those who invested in the golden leaf.
“Despite anticipations that the price may change a little, with the current trend, farmers are likely to reach around $512 million,” he said.
More than 130,4 million kgs of tobacco worth $380 million have been sold 52 days into the 2016 marketing season, representing a $36 million leap on revenues realised over the same period a year earlier.
Last year, tobacco farmers delivered only 117 million kgs worth $344 million after 52 days of trading.
So far, the country has grossed $633 million from $590 million last year, with exports rising to $253 million compared to $246 million over the same period in 2015.
A total 45,1 million kgs of tobacco has been exported to 40 countries in 2016.
Average tobacco auction prices are at par with last year’s at US$2,9 per kg.
Statistics from TIMB’s latest bulletin show that China accounted for over 20,2 million kgs valued at US$164 million; while South Africa bought 9,03 million kgs for US$26,2 million.
China has been averagely spending over US$200 million per annum on Zimbabwe’s tobacco over the years.
“As of Thursday; 45,1 million kgs had been exported to 40 countries, generating US$253 million for the local economy.
“The golden leaf is presently being exported to these countries at an average price of US$5,62 a kg compared to US$5,82 from the same period last year,” reads part of the bulletin.
Indonesia has spent US$11,7 million on 2,2 million kgs and Belgium has bought 2,25million kgs valued at US$11,11 million.
Russia has purchased 2,1 million kgs worth US$7 million.
Other buyers include the United Arab Emirates, Bulgaria, Vietnam, Hong Kong, France, The Netherlands, Germany, Sudan and Tanzania.
But the number of tobacco farmers for the 2015 /16 farming season has declined to 80 728 from around 94 000 recorded in the previous season.
The Zimbabwe Farmers’ Union says the total area planted has declined by 4 percent.
“Lack of confidence in market prices and poor rains are some of the reasons the planted area has gone down. This is witnessed by the drop in the number of registered growers for the 2015 /16 season,” the union said.
TIMB expects farmers to sell more than 45 million kgs in the remaining part of the selling season.
