Source: Farmers earn US$35 million from tobacco as deliveries surpass last year – herald
Elita Chikwati
Agriculture News Editor
FARMERS have earned US$35 million from the sale of 12,8 million kilogrammes of tobacco as deliveries to the floors have increased by 17 percent.
Prices have also slightly improved although they remain low when compared to the same period last year.
Stakeholders have, however, remained optimistic that prices will continue to firm.
According to the Tobacco Industry and Marketing Board (TIMB) latest statistics by Friday, farmers had sold 1050 943 kilogrammes of tobacco valued at US$1 753 981 at the auction floors, while 11 813 293 kilogrammes valued at US$ 33 358 138 went under the hammer at the contract floors.
This is an increase from the 11 million kilogrammes worth US$39 million that had been sold during the corresponding period last year.
TIMB statistics show that the highest price so far is US5,50 per kg compared to US$ 6,30 per kg during the same period last year.
The average price on Thursday was US$2,73 per kg compared to US$3,54/kg during the same period last year.
TIMB public affairs officer Mrs Chelesani Tsarwe said the 2026 tobacco marketing season was progressing steadily, with volumes gradually building up as more growers brought their tobacco to the auction and contract floors.
“Like most markets at the start of a season, some initial pricing volatility was experienced, largely due to limited buyer participation which temporarily reduced prices in the early days.
“TIMB has since engaged industry stakeholders to ensure increased participation by licensed merchants to maintain a competitive marketing environment that safeguards growers’ interests,” she said.
Zimbabwe Tobacco Association chief executive, Mr Rodney Ambrose said the auction market had opened significantly weaker than previous seasons.
“This is going to negatively impact the self-financed farmers. Some of these self-financed farmers have weaned themselves off contract farming, over a period of time, and may have to turn to contract farming again for next season should prices not improve,” he said.
“Contract volumes are gradually increasing and the prices have been fair for the grades and qualities delivered, though prices are lower than last season to date.”
Mr Ambrose also said costs of production had gone up over the past year, and more recently with the new fuel price. “Farmers need a floor price that covers costs of production plus a margin. The pricing model, of course, needs to factor in global supply and demand dynamics, as there is record production in a number of competing countries, with lower costs of production, while demand is on a slight decline.
“We hope the market will improve in the coming weeks and more of the crop becomes available to market,” he said.
Zimbabwe Tobacco Growers Association (ZTGA), president, Mr George Seremwe, said it was important for stakeholders – buyers, growers and merchants to sit down with the Government and TIMB and find solutions to challenges.
“The other challenge this season has been middlemen who are going to farming areas and buying tobacco for resale at the auction floors. These buyers are offering low prices to desperate farmers. TIMB and farmers should put their heads together to eliminate a lot of surrogates trying to take advantage of desperate farmers,” he said.
Tobacco Farmers union Trust president, Mr Edward Dune, said some self-financed farmers were selling through contract floors so they could get better prices, while others were selling to middlemen who pay instant cash.
“Some middlemen are using mobile money systems to pay farmers and some farmers prefer this mode of payment as they can easily pay their workers. A solution has to be found because most farmers sell where there are better prices,” he said.
A total of 121 142 farmers are registered as tobacco growers this season. Of these, 100 436 are contracted while 20 142 are self-financed.
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