Maravi

(HERALD) Tobacco sales top last year's figure

COMMENT - Zimbabwe's tobacco production is up 22% from the same period last year. The land has not been 'given back', this is all the work of the New Farmers. Tobacco output is higher than when it was halved (in US dollar terms) after the introduction of ZDERA, in the year 2002.

Tobacco sales top last year's figure
Tuesday, 12 April 2011 22:05
By Obert Chifamba

Buyers sift through the “golden leaf” on offer at Millennium Tobacco Floors last week.

THIRTY-EIGHT million kilogrammes of flue-cured tobacco worth US$112 million has been sold since the tobacco marketing season began in February. This is about seven million kilogrammes more than the 31 million kg worth US$94,7 million sold during the same period last year.

According to the latest statistics from the Tobacco Industry and Marketing Board, 511 306 bales have been laid so far. Of these 471 129 went under the hammer while 40 177 were rejected.

"During the same period last year a total of 442 805 bales were laid, with 405 616 sold and 37 189 rejected," said the TIMB.

Of the 38 million kg, 21,8 million kg valued at US$69,4 million were sold under contract and the remainder of 16,1 million kg worth US$42,8 million was sold under individual sales.

Under individual sales, the Tobacco Sales Floor, which has been operating since the season began, sold 13,8 million kg for US$36,8 million.

Boka Tobacco Auction Floors, which opened late last month, has so far handled the sale of 2,3 million kg worth US$6 million while Millennium Tobacco, which started operating last week, has so far sold 535 386 kg valued at US$1,4 million.

The fact that only TSF had been the sole tobacco floor operating since the beginning of the season had congested the floors.

Last week, the TIMB ordered that all tobacco already in the long queues be cleared.
Business has since resumed at all floors, although long queues are resurfacing.

Yesterday, Agriculture, Mechanisation and Irrigation Development Minister Joseph Made urged TIMB to speedily resolve the issue of farmers coming to the floors and spending days on end waiting for service.

"There is need for the opening of two or three more floors here in Harare," said the minister. "Those with the capacity to do so should apply for licences. The number of sales per day should also be increased.

"TIMB should also engage another buyer at newly opened Millennium Tobacco Floors to add impetus to the buying process as more farmers are coming with their produce."
He added Zimbabwe must capitalise on the current production challenges in countries such as Brazil and China and produce more volumes to satisfy a growing market.

"We also need to get our figures right - TIMB and Agritex did not get it right in their estimates this year as there was some carryover tobacco from last year that is now coming into the market," he said.

"In fact, AMA, Agritex and TIMB should go on the ground to make accurate assessments of the crop before making their yield estimates.

Minister Made said he had been reliably informed that tobacco volumes would soon expand as more new players were coming in.

"Matabeleland North and South pro-vinces are reported to have expressed interest in tobacco, which also makes it necessary for more farmer tobacco-related training to be undertaken.

"Tobacco is also good when used in rotation with grain crops as the residual nitrogen it leaves in the soil can still be utilised by the next crop," he said,
Minister Made also challenged farmers to destroy tobacco stalks immediately after harvest, to help disrupt disease cycles.

"Tobacco is currently the most sought-after crop on the global market. So let's make hay while the sun shines."

**************************

According to the all white Tobacco Industry Marketing Board, quoted by the BBC, the tobacco output in the first years of land reform and the introduction of the credit freeze through the Zimbabwe Democracy and Economic Recovery Act of 2001 (Jan. 1 2002 onwards), was:

2003: 80 million kg
2002: 162 million kg
2001: 202 million kg
2000: 237 million kg

http://news.bbc.co.uk/2/hi/business/3203563.stm

In US dollar terms

Tobacco Exports (in millions of US dollars):

2001 548.8
2002 594.1
2003 434.6
2004 321.3
2005 226.7
2006 203.8

Source: Special Report, FAO/WFP Crop And Food Supply Assessment Mission To Zimbabwe, 5 June 2007; Table 1: Zimbabwe - Key economic indicators, 2000–2007
http://www.fao.org/docrep/010/10127e/10127e00.HTM

Labels: NEW FARMERS, TOBACCO, ZIMBABWE

posted by MrK @ 2:31 PM