FLUE-CURED tobacco volumes for the 2014 marketing season grew by 30% to 216,2 million kg from 166,6 million kg in 2013 marking the end of the selling season.
TARISAI MANDIZHA BUSINESS REPORTER
According to the latest statistics from the Tobacco Industry and Marketing Board (TIMB), the golden leaf has raked in $685 million as compared to $612 million in 2013.
TIMB chief executive officer Andrew Matibiri said there has been a remarkable 30% increase in the tobacco volume and a 12% increase in value.
However, the average price dropped by 14% to $3,17 per kg due to the fact that the major buyer was no longer buying from the lower part of the plant.
“The way forward for the tobacco industry is very clear: we have seen we can produce the quantities. We are now concentrating on improving quality and addressing other issues of deforestation to make sure that tobacco is produced in a sustainable way,” Matibiri said.
He, however, said TIMB was anticipating that the number of tobacco farmers will increase as the deadline for registration was closing at the end of October. To date, about 70 411 growers have registered for 2015 season as compared to about 64 784 who had registered by the same period last year.
In the period under review the average price dropped by 14% to $3,17 per kg compared to $3,67 per kg recorded during the same period last year.
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TIMB said contracted tobacco contributed 76,5% of the total production to 165,5 million kg while the auctioned tobacco recorded 23,5% to 50,7 million kg. In 2013 marketing season contractors contributed almost 68% of total production while auction tobacco raked in the remainder.
The tobacco output surpassed the initial 2014 target of 171 million kg to record 216,2 million kg.
