HARARE- Zimbabwe’s tobacco auction season opened on Wednesday, with the first bale being sold for US$4.92 per kilogramme.
Last year, prices opened at US$4.35, up from US$4.20 in 2022.
Speaking at an event to mark the official start of the selling season, Vice President Constantino Chiwenga said government was not happy that Zimbabwe continued to export tobacco in its raw form while only 2 percent was beneficiated.
“Government is concerned that we still export 98 percent of tobacco in raw form, in the process exporting jobs and value.
“I am pleased with current investments in tobacco processing plants in the country to give impetus to value addition from the current two percent of tobacco to over 30 percent,” he said.
Chiwenga said the government was however pleased to note that tobacco production has rebounded significantly since the advent of the land reform programme.
“The target is now to increase production from the current 296 million kg to 300 million kg annually,” he said.
In 2023, Zimbabwean tobacco farmers produced 296 million kg, the country’s biggest ever.
Crop output is expected to fall to around 235 million kg owing to the El Nino induced drought.
Speaking at the same event, Tobacco Industry and Marketing Board chair Patrick Devenish said tobacco production fell to 113,101ha this season from 117,645ha last year.
“The tobacco production sector was not spared as a total of 113 101 ha was planted in comparison to 117 645 ha planted at the same time last year.
“The negative four percentage variance was because of delayed rains that were received which affected the delayed timing for planting for the dry land crop.
“The late rains caused a delayed establishment of crops for small-scale farmers who contribute over 70 percent of the national yield. Consequently, there was a decline in volume produced per hectare,” he said.
This season, the central bank advised that the foreign currency retention for tobacco farmers is 75%, down from 85 percent in 2023 meaning that farmers will get 25% in local currency.
Two auction floors, Tobacco Sales Floor (TSF) and Premier Tobacco Auction Floor (PTAF), will operate in the 2024 season.
TIMB also approved decentralized contract sales to be conducted at 5 designated centres in Karoi, Mvurwi, Bindura, Marondera and Rusape.
