Friday, January 06, 2012

(HERALD) Tobacco industry on recovery path

Tobacco industry on recovery path
Friday, 06 January 2012 00:00

THE tobacco industry in Zimbabwe is on the recovery path following a decade of decline when production dipped to a low of 48,8 million kg in 2008, down from a peak of well over 200 kg in 2 000. The adoption of multiple currencies in 2009 ignited recovery with about 60 million kg being produced, doubling to 123 million kg the following year.

Last year, tobacco sales closed with about 131 million kg having gone under the hammer.

Tobacco production has been the main driver behind the 34 percent growth in the agricultural sector. The introduction of contract farming through which tobacco companies and buyers have provided training and inputs t

A significant number of indigenous farmers who were allocated land under the agrarian land reform programme are beginning to show their expertise in growing the golden leaf, although their capacities could still be enhanced through training, access to resources and good markets and support from financial institutions.

Increasing anti-smoking lobbies, and the emergence of alternative sources of nicotine, however, cast a shadow over future production of the crop as experto small-scale farmers has been the major stimulant for the recovery.s forecast an international decline in demand.

In Zimbabwe, there has recently been a serious decline in production of burley tobacco due to waning demand of the product in favour of flue-cured blend. Burley tobacco is a light air-cured tobacco used primarily for cigarette production. Flue-cured tobacco is used primarily for cigarette production but is comparably preferable due to its properties.

Some developments in the global tobacco environment also weighed negatively on the local tobacco season.

A significant consideration during this year's marketing tobacco marketing season is a global oversupply, with a volume almost equivalent to the Zimbabwe national crop remaining unsold from previous years.

- New Ziana.


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