Maravi

(HERALD) Tobacco deliveries near 100 million kg mark

Tobacco deliveries near 100 million kg mark
Business Reporter

THE total amount of tobacco delivered to the country’s two auction continue to inch toward the 100 million-kg mark with almost 97 million kilogrammes having been delivered last week.

By Thursday a total of 96,9 million kilogrammes had been sold at the two floors at an average price of US$2,96/kg raised US$287,1 million. This compares favourably with the 56,4 million-kg that was sold at the same last year at an average price of US3/kg grossing US$169,2 million.

Of the 96,6 million kilogrammes, 59,2 million kilogrammes valued at US$184 million was sold under the contract system at an average price of US$3,11/ kg.

The balance of 37,6 million valued at US$103,1 million was sold under the auction system at an average price of US$2,74/kg.

In terms of the 37,6 million kilogrammes sold under the auction system, a total of 19,4 million kilogrammes worth US$52,8 million was sold under the system at the Tobacco Sales Floor at an average price of US$2,72/kg.

The remainder of 18,2 million kg worth US$50,2 million was sold at the Zimbabwe Tobacco Auction Centre at an average price of US$2,76/kg.

In his mid-term review last week Finance Minister Tendai Biti said agriculture would grow by 18,8 percent this year up on last year’s 14,9 percent.

The growth was expected to be driven by tobacco, up 67,3 percent from 55,6 million kilogrammes in 2009 to 93 million kilogrammes, maize, up 3 percent from 1,24 million tonnes to 1,33 million tonnes; and beef up 2 percent from 93 000 tonnes to 95 000 tonnes.

He added that there was need to sustain viable tobacco pricing in the liberalised marketing environment.

This, he said should offer scope for increased hectarage under tobacco production over the coming seasons.

The tobacco industry has so far reviewed its initial target for the year of 77 million kilogrammes twice so far.

At the end of last month the target was set at 93 million but this has since been reviewed again to 114 million which would mark the first time that the deliveries have topped the 100 million kilogramme-mark in the past year.

During the past eight years deliveries plummeted from about 165,6 million kilogramme in 2002 to as low as 35 million kilogramme in 2008 before rising to 56 million last year.

Tobacco is one of the country's top foreign currency earners contributing 26 percent to Gross Domestic Product last year.

The current marketing season had been affected by a number of challenges such as poor prices, shortages of wrapping paper, congestion and corruption by some employees at the auction floors. These have however been dealt with.

Labels: CATTLE, MAIZE, TOBACCO

posted by MrK @ 5:41 PM