Zimbabwe likely to meet tobacco target

Ahead of the close of the tobacco-selling season on September 7, Zimbabwean tobacco industry players were optimistic they would reach this year’s target of 77 million kilogrammes, despite declining deliveries to the auction floors.

According to figures obtained from the Tobacco Industry and Marketing Board (TIMB) 67.2 million kilogrammes of tobacco had been delivered by August 31, earning US$158 million. Daily deliveries that averaged 1.25 million kilogrammes in May and June had fallen to 600,000 kilogrammes last month and 400,000 kilogrammes in the first week of September.

The price also firmed to an average of US$2.43/kg, up from last month’s US$2.34 average.

Deliveries have fallen due to a range of problems, mainly fuel shortages and worsening power cuts. “There are farmers who are yet to deliver a single kg to the auction floors owing to a number of problems, including labour shortages. We, however, held a stakeholders’ meeting recently and all members agreed that we will achieve the target,” TIMB Chief Executive Andrew Matibiri said.

Mop-up sales will be conducted three weeks after the official closure of the season to accommodate late deliveries.

The government has injected money to fund "support price" to stimulate declining production.

This year’s targeted 77 million kilogrammes of tobacco would be a slight rise from the 55 million kilogrammes sold last season, and would reverse a pattern of steady decline in output that began seven years ago. Production, which peaked at over 200 million kg in 2000, has slid over the last seven years to 160 million kg in 2001/2, 85 million kg in 2002/03 to 68 million kg in 2004.

Financial Gazette