Tobacco defies El Niño . . .Output set for 236 million kg

Oliver Kazunga

Senior Business Reporter

THE 2024 tobacco selling season comes to an end this week following a stellar performance that saw total deliveries come marginally short of the projected output despite the adverse effects of the                     El Niño-induced drought on the 2023/2024 summer cropping season.

Amid a poor 2023/2024 summer cropping season in which 70 percent of the crops in Zimbabwe was declared a write-off, the tobacco crop has demonstrated resilience under the harsh weather conditions.

Against this background, the Tobacco Industry and Marketing Board (TIMB) is upbeat that deliveries at the auction floors will end the season at nearly 237 million kilogrammes (kg), which the industry had projected.

Zimbabwe and other countries in Southern Africa have been hit hard by the El Niño-induced drought.

The dry spell had an adverse effect on crop output and quality, while also diminishing water sources.

This year’s tobacco marketing season ends on Thursday. As of August 8, 2024, TIMB indicated that a total of 230,4 million kg had been sold.

In an interview last week, TIMB chairperson Mr Patrick Devenish said, despite the adverse effects of the El Niño-induced drought, the tobacco crop had sold well.

“Despite the fact that we had an El Niño, last summer was very successful.

“Although the quality of the crop has not been good, as we expected, tobacco has demonstrated that under El Niño conditions, it is a resilient crop and as a country, we can do much better under normal circumstances.

“In the season which is scheduled to close on August 22 and a clean-up sale on August 29, the crop has sold very well — the average price per kilogramme this season is 40 cents higher than it was last season,” he said.

According to the latest sales report released by TIMB, the average price per kg this season is US$3,43 compared to US$3,03 for the last season.

Tobacco remains Zimbabwe’s second largest foreign currency earner after gold, primarily cultivated by small-scale farmers who were allocated land under the land reform programme.

Last year, the country exported 236 million kg of the golden leaf, generating US$1,2 billion.

The exports are primarily destined for markets in the Far East, Africa, the Middle East and the European Union, with countries such as China, the United Arab Emirates, South Africa and Indonesia being among the major consumers of Zimbabwe’s flue-cured tobacco.

Previously seen as technically challenging to small-scale growers, tobacco production has also been embraced by many communal farmers, significantly boosting their presence in the sub-sector.

“Global demand for tobacco, especially Zimbabwean tobacco, is very strong and that’s why, in spite of the poor quality, it sold very well and next year, a good rainy season is forecast. There is a lot of enthusiasm among the whole tobacco-growing community, especially the smallholder community, to plant more tobacco in the next season.

“At this moment, we are expecting a bumper crop next season,” said Mr Devenish.

So far, a total of 230,4 million kg have been sold at the auction floors, reflecting a 21,84 percent decrease from the corresponding period last year.

“The TIMB forecast for this year was for 237 million kg and indications are that at the closure of the season, between 235 million kg and 236 million kg would have been sold,” he said.

Both auction and contract sales have so far generated US$790,4 million compared to US$893,1 million in the same period last year.

In a separate interview, agronomist Mr Ivan Craig, who is also the Agricultural and Rural Development Authority board chairperson, said to leverage on irrigation facilities and boost production amidst the El Niño-induced drought, it was important for Zimbabwe to consider strategies such as precision irrigation.

This includes precision sprinkler systems and soil moisture monitoring to optimise water use.

He said farmer training and extension services are also critical for irrigation management, water conservation and crop management.

“On irrigation schemes, farmers need proper training and planning because, without them, the farmers will just put anything on the schemes, which might end up not giving the maximum potential use or maximum performance of a crop.

“So, the planning will help to identify the crops which can give the maximum use and after those crops have been identified and recommended, they are not just grown anyhow — but proper agronomical practices have to be adhered to,” said Mr Craig.

“Those farmers with irrigation facilities need to be identified and encouraged to do joint ventures with partners who are able to utilise the irrigation facilities and improve productivity and production by maximising land under irrigation.”

The Government — through the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development — has a department that promotes and facilitates joint venture initiatives.

“The efficient use of water is very critical as well. Even if we have more than sufficient water to facilitate irrigation, let’s try and be as efficient as possible so that we save every drop of water while also maximising the presence of Agritex officers on the ground because those people know much as far as farming is concerned.”

Last year, Zimbabwe produced a record crop of nearly 297 million kg largely due to good weather conditions, as well as improved agronomy support by the contractors.

Under the Tobacco Value Chain Transformation Plan, approved by the Cabinet in 2021, the Government is targeting to increase output to 300 million kg by next year, while the crop’s value would rise to US$5 billion.

The plan also seeks to raise localisation of tobacco funding to 70 percent, improve the level of value addition and boost cigarette production to 30 percent from 2 percent.