TIMB brings sanity to auction floors
Friday, 15 March 2013 00:00
Agriculture Reporter
The Tobacco Industry and Marketing Board has brought sanity and improved services for farmers at the auction floors, tobacco growers have confirmed.This has not been the case in the past seasons where the first days of auctioning were marked with congestion and farmers complaining of poor accommodation and payment system.
Most tobacco farmers said they were grateful to the TIMB as they were getting better treatment at the auction floors.
There are three auction floors, Tobacco Sales Floor, Boka Tobacco Floors and Premier Tobacco Floors who were licenced by the TIMB to participate this season after meeting requirements which included having adequate accommodation and ablution facilities, banks with cash, decent canteens and safe water, among other things.
Karoi farmer, Mr Joel Marange said he was impressed with the decent accommodation and could bath at the auction floors, a facility that was not available during the past years.
Mt Darwin farmer, Mrs Lena Makwanya said getting her money soon after selling made life easier as she does not have to spend days camped at the floors as was the situation in the past few years.
“Now I do not have to spend days waiting to get my money because the process is now shorter and I can go back to the farm after selling my crop the same day,” she said.
TIMB chairperson Mrs Monica Chinamasa urged farmers to register and submit their crop estimates before delivering their crop for sale.
“The cardinal rule of booking first then deliver today and sell tomorrow, is meant for planning purposes and ensuring order at the floors,” she said.
A number of growers have however, continued to bring their crop without having made prior booking arrangements.
TSF managing director, Mr James Mutambanesango said although the farmers were not sent back they first have to register before selling their crop and this might result in delays.
He said some of the farmers were new and not aware of the procedures they had to follow when selling tobacco.
Meanwhile, tobacco deliveries have increased from an average of 70 000 kilogrammes during the first days to above 200 000 kilogrammes per day.
There has been a slight decline in prices this season compared to last season. Farmers have also complained that the highest price at the auction floors has remained at US$4, 99 since last season while the contract sales are registering prices as high as US$5,70 per kilogramme.
At the opening of the 2013 selling season in February, TIMB noted that last season there was an uncomfortable difference between auction floor and contract prices for similar grades which should be corrected this season.
Labels: JOEL MARANGE, TIMB, TOBACCO
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Tobacco sales generate US$61 million
13/03/2013 00:00:00
by Business Reporter
THE Tobacco Industry and Marketing Board (TIMB) says Zimbabwe has so far earned US$61,1 million from tobacco sales, a 7.4 percent increase from US$ 56, 9 million realised same period last year.
TIMB says at least 10,9 million kg of tobacco were sold through contract sales since the beginning of the 2013 marketing season a month ago while the remainder went under the hammer.
Approximately 216,028 bales were delivered to the three auction floors - Boka Tobacco, Tobacco Sales and Premier Tobacco - while 16,909 bales were rejected.
On daily total sales, 679 499kg worth US$2, 6 million of the golden leaf were sold day 19 compared to last year’s figure of 576,932 kg worth US$2 million.
Last year, Zimbabwe produced about 144.5 million kg of tobacco, surpassing the projected 130 million kg, with sales raking in US$527,6 million.
Since the adoption of multiple foreign currencies in Zimbabwe, the tobacco industry has helped fire the economy’s recovery from the meltdown of the past decade with some70,000 farmers registered to grow the crop this season.
Tobacco is one of Zimbabwe’s major agricultural exports, accounting for 10,7 percent of the country's gross domestic product (GDO). Major export destinations for the crop include China, Britain, South Africa, Indonesia, the United Arab Emirates, Mauritius and Russia.
Labels: TIMB, TOBACCO
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Zim eyes big tobacco crop as new farmers cash in
Tobacco production boost ... Saviour Kasukuwere (centre) with TIMB officials Wednesday
13/02/2013 00:00:00
by AFP I Staff Reporter
TOBACCO revenue is expected to increase by 16 percent this year as new landowning farmers turn to the valuable export crop, an industry official said on Wednesday.
"We are expecting the total deliveries to reach 170 million kilograms or more and earnings of around $600 million," Monica Chinamasa, chairperson of the Tobacco Industry and Marketing Board told AFP.
That would be up from just over 140 million kilos last year, worth around $517 million, according to the board.
Zimbabwe was once the world's biggest tobacco exporter, with sales accounting for 30 percent of exports. But the country’s often chaotic land reforms, launched in 2000, resulted in a steep drop off in production.
However, the number of registered tobacco growers has almost doubled in the last year to 66,000 with more than 80 percent of the new producers beneficiaries of reforms, Chinamasa said.
The government has urged banks to support fledgling tobacco farmers, who have no access to bank loans because they do not have collateral.
"Most of these farmers are using meagre resources to start production and I believe if the financial services sector were to open up we would see this sector develop," Kasukuwere said as he opened this year’s selling season.
“I have said this before; this kind of attitude must go … banks must support our farmers. They should help farmers to develop and assist them to make sure they can access long term funding,” Kasukuwere said as he officially opened the new selling season.
“If the financial sector were to assist farmers the country would witness an increase in tobacco volumes which are grown every year and an increase in foreign currency earnings.”
The country’s financial sector has largely remained coy over financing agriculture with funding collapsing from 74% before the land reform programme to the current levels of around 17%.
But production of the crop has been rising since 2009, though it remains off a peak in 2000 of 236 million kilos. Output fell to a low point of 56 million kilos in 2006, the weakest performance since independence in 1980.
The sudden collapse of commercial farming caused by the land reforms
[Caused by economic sanctions (ZDERA) in 2002, not land reform in 1999.
From the FAO:
Tobacco Exports:
2000 2001 2002 2003 2004 2005 2006
548.8 594.1 434.6 321.3 226.7 203.8
- MrK]
sent country's already wobbly economy
[Thanks to 5 years of Structural Adjustment Programmes, ESAP, from 1991-1996, with predictably bad results. - MrK]
into a tailspin, leading to world-record hyperinflation although the government blames sanctions imposed by the West.
[That's because they were caused by economic sanctions, in an attempt to make the land reform program fail. It didn't. - MrK]
After the government abolished the Zimbabwe dollar and made the US dollar its currency of reference, farm production stabilised and began ticking upward.
Tobacco remains Zimbabwe's biggest agricultural export, though mining has overtaken farming as the main foreign currency earner.
“The crop accounted for 10,7 percent of the GDP in 2012 and constituted 21,8 percent of all total exports, compared to 9,2 percent for other agriculture commodities. This compares favourably with the 61,8 percent contribution by all minerals combined,” said Kasukuwere.
Labels: SAVIOUR KASUKUWERE, TIMB, TOBACCO
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TIMB finds foreign buyer for local burley tobacco
Sunday, 13 January 2013 00:00
Agriculture Reporter
Zimbabwe has secured a foreign buyer for its burley tobacco under a long-term arrangement expected to significantly boost earnings from the crop.The country failed to attract buyers for the tobacco flavour in 2011 while only one buyer purchased the crop from one out of four centres last year.
In an interview last week, Tobacco Industry and Marketing Board (TIMB) chief executive officer Dr Andrew Matibiri said the board has already licensed the buyer.
Dr Matibiri would not be drawn into revealing the identity of the purchaser but indicated the company was based in Southern Africa.
“Burley tobacco marketing will kick off at the same time as flue-cured tobacco marketing since we have licensed a consistent buyer, who is also a processor,” he said.
“Although the buyer is purchasing our crop, they indicated that their market is interested in burley tobacco that has more nicotine than the one we have in Zimbabwe.
“We hope to work on the crop in future.”
Tobacco Research Board acting general manager Dr Dahlia Garwe said many prospective buyers were interested in the crop.
“We are pleased to have identified buyers in the region who are interested in burley. The demand is so high that we may not be able to meet it,” said Dr Garwe.
“However, our current variety has less nicotine than they require. So, we are researching on how we can increase the nicotine content.
“We also need to come up with a variety that has a stock that is easy to cut from the stem during ripping. This will help growers reduce their labour force.”
Burley is air-cured and survives in dry conditions unlike flue-cured tobacco. The two types of the crop are differentiated by their genetic composition.
In 2011, the TIMB failed to secure a buyer for burley tobacco, resulting in farmers being turned back with their crop.
Last year, production declined drastically after most growers abandoned the flavour.
The country sold only 62 713kg compared to the 426 407kg sold during the same period in 2011.
According to the TIMB, burley tobacco hectarage is expected to increase from 16,7 hectares in the previous season to 144,2 hectares this season.
Labels: ANDREW MATIBIRI, TIMB, TOBACCO
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Tobacco hectrage up 38 percent: TIMB
12/01/2013 00:00:00
by Business Reporter
SOME 77,910 hectares of land has been put under tobacco this year,
a 38 percent increase from 56,377 hectares last season, the Tobacco Industry and Marketing Board (TIMB) has revealed.
TIMB chief executive officer Andrew Matibiri said the increase in farm size shows farmers continue to abandon other crops for tobacco. Poor marketing, unattractive prices coupled with late payments to farmers over the years have affected crops such as cotton and maize.
"Farmers who grow rain-fed tobacco are still planting because the rains started late while those who irrigated are reaping and curing their crop," he said.
According to TIMB, more than 65,000 farmers have registered to grow and sell tobacco this season compared 34,673 last season.
Tobacco exports raked in US$771 million averaging US$5,94 per kilogramme, the highest annual average export price achieved since dollarisation.
“There is still a further 95,3 million kilogrammes of tobacco in our stocks so the earnings are set to rise even higher once everything is marketed. The exports have, however, trended down from 17 million kilogrammes in November to seven million kilogrammes in December,” Matibiri said.
“In 2011, a total of 10 million kilogrammes were exported during the same period with the seasonal exports ending with 129,7 million kilogrammes, which is 10 percent below the 2012 levels. More than 42 percent of the tobacco went to China,” Matibiri said.
This year's production is targeted at 170 million kgs.
“Already we have registered 65 199 farmers for this year’s crop compared to last year’s 34 673 farmers during the same period. We have also registered 1 225 farmers for burley tobacco while another 499 have been registered for dark air cured tobacco,” the TIMB chief added.
Tobacco is one of Zimbabwe's major agricultural exports with markets including China, UK, South Africa, Indonesia, United Arab Emirates, Mauritius and Russia.
Labels: ANDREW MATIBIRI, TIMB, TOBACCO
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New farmers swell tobacco ranks
25/11/2012 00:00:00
by Roman Moyo
THE Tobacco Industry and Marketing Board (TIMB) says it has
registered more than 62,000 tobacco growers up from the
25,000 in the last season. TIMB Chief Executive Officer Andrew Matibiri said with grower numbers increasing, the focus was on now on improving the quality of the crop.
At least 80 percent of the registered growers are small scale farmers.
“Now that the number of farmers has increased we wish that farmer organisations really work with the growers and that includes us to ensure that farmers do not concentrate on the quantity of the crop but the quality,” said Matibiri.
Matibiri said so far, more than 19,000 hectares of land has been put under tobacco. Prices for the crop in the last season closed 34,2 percent firmer, averaging US$3,69 per kg compared to US$2,75 last year.
The Medium-Term Plan (MTP) had forecasted tobacco output at 180 million kg this year, which could not be achieved due to limited funding among other constraints.
Still, overall sales volumes for the season reached 144million kgs.
Tobacco production has continued to record steady recovery over the years but officials say the industry needs US$200 million in fresh capital to return to peak production levels of 237 million kg recorded in 2000. Labels: ANDREW MATIBIRI, NEW FARMERS, TIMB, TOBACCO
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WHO threatens tobacco recovery: TIMB
Making their mark ... Thousands of new farmers have joined thte sector
07/11/2012 00:00:00
by The Guardian
THERE is hustle and bustle on the tobacco trading floors of Zimbabwe these days. After a decade of agricultural turmoil that crashed the economy, this seen as one of the few bright spots.
[Actually, 'agricultural turmoil' didn't crash the economy, that were economic sanctions intended to make land reform fail, implemented from 2002 onwards. ZDERA, the Zimbabwe Democracy and Economic Recovery Act of 2001. - MrK]
The crop's value has bounced back from £105m in 2008 to more than £330m this year. Moreover, whereas tobacco production was once dominated by a white elite, now tens of thousands of farmers are black.
[An open admission that land reform was not merely a transfer of land from white estate holders to the political and military elite. In fact over 350,000 new families received land under the Willing Buyer, Willing Seller (159,000) and Fast Track (200,000) land reform programmes. - MrK]
Yet this precious gain is under threat, the industry claims, not from renewed political violence or economic turbulence, but from the global anti-smoking lobby.
[Which I don't disagree with. In fact, tobacco should be replaced by cannabis and hemp as an industry. Getting high in cannabis is good for you, destresses, and is good for your heart and veins. Hemp seed has the highest quality protein and is a health food; cannabis itself should be considered a food group (YOUTUBE), because of all the diseases it prevents. Hemp can drain swamps too. Entire industries can spring up turning hemp fiber into clothes and shoes. Replacing plastic bags with hemp paper bags can end the pollution of the oceans, as there are huge rafts of plastic waste blocking parts of the ocean (see the South Pacific Garbage Patch. See more here (YOUTUBE). - MrK]
"In Zimbabwe we are very dependent on tobacco," says Dr Andrew Matibiri, director of the country's Tobacco Industry and Marketing Board.
"It makes up 26% of our foreign currency exports. Any movement towards reduction of the exports will affect our economy, especially poverty alleviation."
Growers in Nigeria, Tanzania and other African countries accuse the World Health Organisation (WHO) of cracking down on struggling farmers and putting millions of jobs and livelihoods at risk.
The WHO insists this is a misrepresentation.
It says it is merely issuing guidelines for governments around the world on how to deal with a projected decline in consumer demand. From this point of view, the tobacco industry has set up a straw man so it can take an unaccustomed position of the moral high ground.
Matibiri, who claims to have the backing of both the president, Robert Mugabe, and prime minister Morgan Tsvangirai, argues that more than 70,000 Zimbabwean farmers would suffer immediately under the WHO proposals.
"We say farmers should be allowed to grow tobacco," he says. "It's not illegal. They grow it very quickly and easily; they have been doing it for over a hundred years so there's a lot of knowhow. So far there have been no alternative crops put on the table."
The WHO says tobacco kills almost 6 million people a year. Matibiri does not deny that smoking is harmful, but adds: "We understand all the issues and we agree with them. There are few beneficial consequences of smoking. But we are appealing to the WHO to understand our peculiar position as tobacco producers."
The issue has flared up because the WHO guidelines, known as articles 17 and 18 of the landmark framework convention on tobacco control, will be discussed next week at the Conference of the Parties in Seoul, South Korea. Potential measures include restricting growing periods and the amount of land used for tobacco while encouraging alternative crops.
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In a pre-emptive strike, the Tobacco Institute of Southern Africa (Tisa) commissioned a study of 15 regional economies that shows 4.4 million Africans are employed – and 24 million dependent – on a tobacco value chain worth more than $10bn.
In Zimbabwe, according to the research, the industry employs 1.13 million people with 5.67 million dependents and generates $579m in exports. In Malawi, another country with economic woes, tobacco employs 1.4 million people, generates $428.2m in exports, and represents 15% of GDP.
Francois van der Merwe, chief executive of Tisa, said of the WHO: "Their motivation has been the ongoing failure to decrease the demand for tobacco products that has resulted in an ill-conceived attempt to tackle the most vulnerable people in the supply chain, namely farmers.
“Should this ill-advised and misguided proposal [article 17] come into effect, it will have a dire impact on the livelihoods of farmers and tobacco growing countries more broadly."
Tobacco representatives in various African countries have also expressed opposition. Julius Masongo, chairman of thee Tanzania Tobacco Cooperative Apex, said: "The WHO has consistently refused to listen to tobacco growers in drafting the proposal that directly impacts Tanzania's farmers.
“By doing so, they act like a blind man driving a steamroller without paying any attention to the consequences of their folly. Now is the time for governments to act and oppose these draconian measures."
Tobacco growing countries charge that, in its zeal to curtail an industry it regards as evil, the WHO is failing to appreciate the paradox that tobacco throws a lifeline to those who grow it. Unsurprisingly, the WHO has a different view.
It it not issuing orders to anyone, it says, but seeking to help governments that have signed up to the convention to manage what it sees as tobacco's inevitable decline.
Dr Haik Nikogosian, head of the convention secretariat for the framework convention, says: "The document is called 'policy options and recommendations' for governments, not farmers. It's developed to help governments to help farmers transition to alternative crops. The demand for tobacco will gradually diminish: it is clearly known. People will not be smoking tobacco in 200 years.
"It's not asking farmers to do anything. It doesn't have any deadlines or requirements. It's advice and guidelines, and should be seen in a positive light. The WHO wouldn't involve itself in agricultural business in that negative way. This is about supporting farmers, not restricting them."
Asked about the vitriol being poured on the WHO, Nikogosian says: "I'd be surprised if it only comes from the tobacco growing organisations. There are other organisations and forces that are not to be trusted in giving information. If you look at the value chain and the profits, they are not sitting with the farmers. You can see where the interests are."
Labels: 2007 BUDGET, ANDREW MATIBIRI, TIMB, TOBACCO, WHO
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Over 50 000 tobacco growers registered
Saturday, 03 November 2012 17:54
Faith Mhandu
Over 54 000 tobacco growers, almost double last year’s figure, have registered to grow the crop in the 2012-2013 agriculture season.
According to the Tobacco Industry and Marketing Board (TIMB), growers’ registration increased by about 90 percent this year, an indication that the cash crop is gaining popularity amongst farmers.
“To date about 54 482 growers have registered for the 2012-2013 season compared to about 28 808 who had registered same period last year. At least 20 621 new growers have registered.
“Registration has closed although there is still room for late registration. However, late registration attracts a fine of US$10 until December 31 and US$40 from January 1, meaning farmers will pay US$20 and US$50 as penalty,” TIMB said.
Small-scale farmers prove to be driving the sector with over 40 000 registered growers being either A1 or communal farmers.
At least 43 percent of the registered growers are A1 while 39 percent are communal farmers.
The remainder is shared among small-scale commercial and A2 farmers with 10 percent and 8 percent respectively.
Mashonaland Central Province has the highest number of growers with 18 340 farmers having registered while Mashonaland West saw 15 820 farmers expressing their will to venture into the crop. Close to 1 000 growers have registered to grow Burley tobacco this season with the bulk being small-scale farmers.
TIMB said: “Burley tobacco remains popular among farmers in drier parts of the country and at least 993 farmers have registered to grow the crop this season.”
Of the nearly 30 000 farmers that grew the crop last year, about 142 million kg of tobacco was produced, raking in about US$189 million for the country.
Labels: NEW FARMERS, TIMB, TOBACCO
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COMMENT - So much for the estates being handed over to 'cronies of Mugabe'. There were 4,500 'white farmers' (landlords), now there are 49,000 tobacco growers. My only concern is that with the MDC controlled Finance Ministry prioritizing tobacco payments and not paying maize farmers on time, this represents a typical World Bank restructuring of the economy towards producing cash crops instead of staple crops, making the country dependent on food imports.
Tobacco farmers go up seven-fold
Friday, 12 October 2012 00:00
Elita Chikwati Agriculture Reporter
The Tobacco Industry and Marketing Board has registered 49 000 growers to produce the crop in the 2012/13 summer season. The figure is seven times more than the total number of farmers who had registered to grow the golden leaf during the same period last year. Seven thousand growers had registered during the same period last year. The deadline for registration is October 31.
“Companies are also registering to contract farmers and the number may go up if all applicants are successful,” TIMB chief executive Dr Andrew Matibiri said yesterday.
Dr Matibiri said 18 companies last year contracted farmers to grow the crop. He said the TIMB was still considering applications from six companies.
Meanwhile, farmers have intensified planting of tobacco since the opening of the planting season on September 1.
By end of September, 6 000 hectares of the crop had been planted compared to 5 000ha for the same period last year.
Dr Matibiri, however, bemoaned the absence of funding for the tobacco sector from both the private sector and Government.
Apart from the usual challenge of electricity, which is affecting irrigation, lack of funding has continued to affect tobacco farmers.
He said farmers were complaining of high input costs which he said were eroding farmers’ profits.
Tobacco has become the highest paying crop compared to maize, wheat and cotton.
Although the Grain Marketing Board offers competitive producer prices, the parastatal does not have ready cash to pay farmers like what is done to tobacco growers.
Cotton farmers last season registered huge losses as companies refused to increase prices to match the ones gazetted by Government.
Labels: NEW FARMERS, TIMB, TOBACCO
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COMMENT - Land reform is in full effect, and benefiting millions of people.
(NEWZIMBABWE) TIMB: 20,000 new farmers to grow tobacco
11/10/2012 00:00:00
by NewZiana
THE Tobacco Industry and Marketing Board says 50,418 farmers have so far registered to grow the golden leaf in the 2013 season, up from 25,466 farmers during the same period last year.
The figures show that at least 20,000 new farmers have been joined the tobacco sector for this season.
According to the data, the majority of tobacco farmers, at 21,865 are small-holder production (A1) farmers followed by nearly 20,000 communal farmers.
Nearly 5,000 small scale farmers have been registered while 3,730 commercial farm (A2) farmers have so far expressed interest in growing the crop.
In terms of seed sales, the figures show that over 8,100 kilogrammes of flue cured tobacco have been sold, up 25 percent compared to the same period last year.
The seeds will cover an estimated 135,623 hectares.
The data from the tobacco industry regulator shows that more farmers are turning to the golden leaf as it is more lucrative, with its marketing through the auction system or contract, better organised compared to other crops.
Analysts have since expressed concern that increasing interest in the golden leaf will affect production of other crops such as maize.
Tobacco production went up nine percent to 144.5 million kilogrammes in the 2012 marketing season which closed on Sept 28.
The crop was sold at a seasonal average price of US$3.65, a price which was 34 percent higher than the previous season.
Labels: A1 FARMERS, A2 FARMERS, NEW FARMERS, TIMB, TOBACCO
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