(HERALD) Industry reviews crop output to 114 million kg
Industry reviews crop output to 114 million kgBy Elita Chikwati
The tobacco industry has again reviewed the national output target for this year’s crop to 114 million kilogrammes as more deliveries continue to flow into the country's two auction floors.
The review comes less than two weeks after the industry had reviewed the initial target of 77 million kg upwards to 93 million kg.
According to the Tobacco Industry and Marketing Board the first statistics were drawn after an early crop assessment where most of the tobacco crop had been affected by the dry spell that hit most of the areas in the country.
But deliveries at the floors have shown that the bulk of the crop performed well despite the dry spell that affected part of tobacco.
As of Friday last week, 93,1 million-kg had been sold through both auction and contract sales at an average price of US$2.97/kg since the season started on February 16.
This compares favourably with 55,7 million kg sold at an average price of US$3/kg through both systems during the same time last year.
Of the 93,1 million kg, 65,8 percent was sold through the contract system at an average price of US3,11/kg and the balance of 34,2 percent was sold through the auction system at an average price of US$2,75/kg.
The weekly throughput was 4,7 million kg for the week ending July 9, down from 5,3 million kg recorded the prior week.
The weekly average price declined to US$2,69/kg from US$2,73/kg achieved during week 19.
Contractor’s sales accounted for 3,8 million kg of the weekly throughput while the remaining 900 000 kg went through the auction floors.
Meanwhile, the country earned US$276,5 million from the sales of the 92,2 million-kg, which is higher than the US$167,5 million that was received from the sale of 55,7 million kg during the same period last year.
Of the 92,2 million kg of tobacco, 56,1 million kg valued at US$174,8 million was sold under contract at an average price of US$3,11/kg and the balance of 36,9 million kg worth US$101,6 million was auctioned at an average price of US$2,75/kg.
Under the auction system Tobacco Sales Floor accounted for 19 million-kg valued at US$51,9 million sold at an average price of US$2,73/kg.
The balance of 17,9 million worth US$49,6 million was sold at Zitac at an average price of US$2,77 per kg.
Agriculture Mechanisation and Irrigation Development Minister Joseph Made on Monday told delegates to a tobacco conference that he was happy with the performance f the tobacco industry.
"Previously merchants and contractors had presented that a total of 93 million kilogrammes would be sold this year but more tobacco is being delivered to the floors," he said.
Minister Made said the contract system still had 17,5million kilogrammes of tobacco to be delivered.
"Merchants have indicated that three million more kilogrammes will be delivered to the floors giving a total of 20,5million kilogrammes of tobacco," he said. The minister also said he was happy the contractors and merchants had shown confidence that they are able to buy the additional crop. The 2009/10 tobacco-selling season, which opened on a high note, has been beset by a myriad of problems, which have since been dealt with.
These include poor prices, shortages of wrapping paper, congestion and corruption in the grading of bales at the auction floors.
Tobacco production is set to increase next season as farmers increase hectarage while others are going to shift to tobacco as it has emerged the best paying crop among other crops such as cotton, maize and soya beans.
Labels: TOBACCO
posted by MrK @ 3:50 AM
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