HomeNewsTobacco revenue reaches $460m

Tobacco revenue reaches $460m

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Tobacco deliveries for the first 19 weeks of the selling season were 6% above last year’s figures at the same period, statistics from the Tobacco Industry Board (TIMB) have shown.

According to TIMB, as of June 22, 124, 8 million kg of flue cured tobacco had been sold compared to 117,4 million kg the same period last year.
A total of $464 million has been raised so far indicating a 44, 8% increase from $320 million during the same period last year. The crop was sold at an average price of $3,72per kg.
At least 133 million kg of tobacco are expected this year.

Tobacco was one of the crops that had performed well for the country despite erratic rainfall and poor funding for the sector.

“Deliveries at auction floors have further dropped signalling an early end to the 2012 marketing season.

“During the 19 weeks of sales 4,4 million kg were delivered with contractors making the bulk of the weekly purchases,” TIMB said.

A total of 1 512 710 bales were sold while 1 597 501 bales were laid in the week under review.
At least 10 tobacco buyers were participating in this year’s selling season.

The 2012 season has four operational auction flours compared to last year when there were fewer players.

The agricultural sector is projected to grow by 11,6% this year underpinned by increased output in tobacco, maize, cotton, soya beans and poultry. In his Budget presentation for 2012, Finance minister Tendai Biti said the agricultural sector required at least $2 billion annually to take advantage of its potential.

According to the interim report on Medium-Term Plan(MTP) implementation progress report, tobacco output has been revised downwards due to the decline in hectarage from 78 000 hectares to 76 000 hectares and lack of funding due to liquidity challenges in the economy.

“For 2012 the MTP was targeting 180 million kg, however, tobacco output for 2012 has been revised downwards to 130 million kg.

“This output is 28% lower than the MTP target,” the report read.

The report said the growth target for the agriculture sector had been revised downwards due to the poor agricultural season.

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