Tobacco market share rises

Continued delivery to merchants after closure of auction
floors has seen the market share for contracted tobacco
marginally rise from 76,1 percent to 76,4 percent of total
production for this year, the Tobacco Industry and
Marketing Board has said. During the same period in 2013
contractors had accounted for 67,5 percent of total
production against 32,5 percent of auctioned tobacco.
In its weekly bulletin, the TIMB said seasonal total sales
stand at 215,1 million kilogrammes, up from at least 164,3
million kilogrammes sold during the same period in 2013 at
an average price of $3,69 per kg.
TIMB chief executive officer Dr Andrew Matibiri told New
Ziana that an increase in tobacco produced this year is
attributed to orderly marketing which lured thousands of
farmers to leave other crops.
"The increase in tobacco output from 166,5 million kg in
2013 to 215 million kg can be attributed to the
straightforward marketing system used as farmers are paid
per every delivery."
"Also tobacco pays a lot so farmers are shifting because
other crops like cotton and maize are failing to meet
growers' price expectations yet for the golden leaf we have
a ready market both locally and internationally," he said.
The tobacco sector has been on a rebound as 106 455
growers registered for the 2014 season compared to about
91 278 who had registered by the same period last year.
Dr Matibiri said contractors also played a role in the
production of more tobacco this season.
"Contractors have been supplying inputs such as fertilizers
to farmers and this has seen a boost in national tobacco
production," he said.
Zimbabwe Commercial Farmers Union president Wonder
Chabikwa however said low prices were affecting farmers
this season.
"Buyers reduced prices to $3,17 per kg due to demand and
supply principle in which they lowered it to maximize their
profits after seeing a boom in tobacco grower base," he
said.
Tobacco is one of Zimbabwe's major agricultural exports,
accounting for 10, 7 percent of gross domestic product
and 40 percent of all exports.