(HERALD) Tobacco export to rake in US$500m

Saturday, October 29, 2011

(HERALD) Tobacco export to rake in US$500m

Tobacco export to rake in US$500m
Saturday, 29 October 2011 00:00
Agriculture Reporter

ZIMBABWE is expected to earn US$500 million from the export of tobacco produced during the 2010/11 cropping season. The country had initially raked in US$361 direct earnings from the crop during the selling season.

In a speech read on his behalf by the Permanent Secretary Mr Ngoni Masoka at the official closing of the tobacco season in Harare yesterday, Agriculture Mechanisation and Irrigation Development Minister Joseph Made, said tobacco had become the single largest foreign currency earner for the economy.

"Agriculture is a major contributor to the country's GDP as in 2009 and in 2010 it contributed 14,9 percent and 19 percent respectively.

"The sector provides employment and income for about 70 percent of the population, supplies 60 percent of raw materials required by the industrial sector and contributes 40 percent of total export earnings," he said.

Minister Made applauded the tobacco sector for working hard during the tobacco production and selling seasons.

There has been an increase in production by seven percent from 123,5 million kilogrammes of tobacco produced last season to 132,4 million kilogrammes this season.

The continued increase has been attributed to increased production from small scale farmers.

"With this achievement, the country is continuing its march towards consolidating its global position as an important international player in global tobacco production and trade," he said.

Tobacco production has been on the increase over the last decade.
"The number of tobacco growers has increased dramatically over the last decade from a register of 8 500 (growing an average of 10 hectares each) to over 66 000 growers (growing an average of 1,3 hectares each) of whom 80 percent are small scale in the A1 and communal sector," he said.

Speaking at the same function, Tobacco Industry and Marketing Board chairperson, Mrs Monica Chinamasa, noted that the just ended tobacco-selling season was characterised by inadequate funding from the financial institutions.

"This has become a perennial problem that militates against rapid recovery of production.

"The A2 sector is the most affected by this lack of funding. This sector only accounted for 12 percent of total production, compared to 28 percent for A1, 18 percent communal, 11 percent small scale and 31 percent large scale producers," she said.

Mrs Chinamasa said there was need for a concerted effort to train growers to reduce handling losses, which were as high as 21 percent during the just ended season.

Production was also affected by continuous power cuts that increased the cost of production and reduce viability.

She bemoaned the current sales floor facilities and all marketing systems, which were overwhelmed and congested resulting in farmers enduring delays in sales, loss of bales and inadequate catering.

Some of the challenges included pay- ment delays, inadequate catering, poor security and other necessary support services.

Labels: AGRICULTURE, JOSEPH MADE, MINISTRY OF AGRICULTURE MECHANISATION AND IRRIGATION (ZIMBABWE), TOBACCO