The Sunday Mail
Livingstone Marufu
THE country has grossed more than US$739 million from the sale of 210 million kilogrammes of tobacco, with farmers pocketing more than US$484 million from 165 million kgs that has been delivered in the current marketing season.
So far, 45 million kgs of the golden leaf worth US$254 million has been exported.
Farmers’ revenues have increased 6 percent from the US$458 million that had been realised during the same period last year.
Similarly, deliveries are up 6,27 percent on the year at 165 million kgs, which is more than the 160 million kgs that had initially been forecasted.
The target has since been reset to 175 million kgs.
While revenues and deliveries have increased, the average price per kg has dropped 0,5 percent to US$2,94 from US$2,95 last year.
South Africa and China are the main consumers of the golden leaf.
Latest statistics from the Tobacco Industry Marketing Board (TIMB) show that China accounted for over 20,3 million kgs valued at US$164 million while South Africa bought 9 million kgs for US$26,2 million.
China – home to more than 350 million smokers – has been spending over US$200 million per annum on local tobacco.
“As of Thursday on day 67 of trading, farmers have delivered more than 165 million kgs earning US$484 million in the process.
“On the other hand, 45 million kg were exported to 40 countries so far, generating US$253,67 million into 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 (in) the same period last year,” said TIMB in its latest bulletin.
Indonesia has spent US$11,7 million on 2,2 million kgs at an average price of US$5,21 per kg followed by Belgium, which has so far bought 2,2 million kgs valued at US$11,11 million (average price of US$5,21 per kg).
Russia purchased 2,1 million kgs worth US$7 million.
Other buyers include the United Arab Emirates, Bulgaria, Vietnam, Hong Kong, France, Netherlands, Germany, Holland, Sudan and Tanzania.
But the number of tobacco farmers has dropped from 92 430 to 71 728 during the 2015/2016 tobacco farming season.
The Zimbabwe Farmers’ Union claims that the total area put under production has since declined 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 ZFU said.
