A decline in tobacco output and average price has been recorded in the first eight days of the selling season attributed to the poor quality of the golden leaf.
BY OUR STAFF
The tobacco marketing season began on March 4.
Statistics from the Tobacco Industry and Marketing Board (TIMB) show that the average price per kg of tobacco has declined by 17,80% to $2,25 compared to $2,74 per kg during the same period last year.
The average price of tobacco per kg has been on the increase since 2009 when it stood at $2,98, rising to $2,99 in 2010. In 2011, the average price was $2,73, rising to $3,35 in 2012, $3,67 in 2013 and at $3,16 per kg last year.
The total output was down 26,10% to 3,6 million kg for the period under review compared to the same period last year at 4,8 million.
The value of the tobacco leaf during the period under review stood at $8 010 826 compared to $13 187 936 last year same period.
The low deliveries and average price pose a threat to the country’s tobacco output. The marketing season is keenly followed by policy makers as it injects liquidity into the economy.
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Experts cited the poor rains witnessed this year and the reduced demand of the golden leaf from the Chinese market. The reduced demand has been attributed to the oversupply of tobacco on the international market.
Tobacco seasonal exports to China, South Africa, the United Kingdom, Mauritius, United Arab Emirates and other countries amounted to $215 008 056 at an average price of $6,65 per kg. Total output stood at 32,3 million kg.
The figures were higher than last year when 14, 3 million kg was sold at an average price of $3,62 per kg. The sales realised $51 854 332.
Tobacco has been one of the major crops in the agricultural sector attracting new growers due to high returns compared to other crops such as maize.
The number of tobacco growers has more than trebled to 89 000 this year from 20 000 in 2009.
Tobacco’s contribution to total exports has been on the increase to 24% last year from 18% in 2009.
