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Tobacco season starts on high note

Business
THE tobacco selling season began yesterday, with the golden leaf selling for $4,50 per kg, almost double last year’s opening price of $2,50 per kg
…as the golden leaf fetches $4,50 per kg

 

THE tobacco selling season began yesterday, with the golden leaf selling for $4,50 per kg, almost double last year’s opening price of $2,50 per kg

BY VICTORIA MTOMBA

From left: TIMB chief executive officer, Andrew Matibiri, Agriculture, Mechanisation and Irrigation Development minister Joseph Made and TIMB chairperson, Monica Chinamasa chatting with farmers at the Tobacco auction floors in Harare yesterday
From left: TIMB chief executive officer, Andrew Matibiri, Agriculture, Mechanisation and Irrigation Development minister Joseph Made and TIMB chairperson, Monica Chinamasa chatting with farmers at the Tobacco auction floors in Harare yesterday

The selling season started slighty late due to the late rains experienced in the country for the 2015/16 agricultural season.

Tobacco Industry and Marketing Board (TIMB) chief executive officer, Andrew Matibiri attributed the higher opening prices to the quality of the crop.

“The crop last year began at $2,50 and this year’s figure is $4,50 per kg, which is higher. But this does not mean that this will be the price on offer throughout the season,” he said.

Last year farmers were disappointed with the price of the golden leaf, which was sold as low as $1,50 in some instances, due to the poor quality of the crop.

Speaking at the opening of the selling season yesterday, Agriculture, Mechanisation and Irrigation Development minister Joseph Made was optimistic of a better quality crop this year.

“It is, therefore, expected that merchants will pay fair prices for the tobacco to enable farmers to have sustainable returns on their tobacco. The expectation is that buyers will match quality tobacco with high prices at both auction and contract floors,” he said.

Made said the 1,5% tobacco levy introduced last year was reduced to 0,75% at the beginning of 2016. The levy has been ring-fenced to finance reforestation activities, complementing other sustainability initiatives embarked upon by other entities in the industry.

TIMB chairperson, Monica Chinamasa said 9 120 new growers were registered for the first time this year compared to 17 255 in the previous marketing season.

The board licensed three auction floors and 16 contractors for this selling season.

Chinamasa said TIMB received 23 applications for A class buying licences and to date, 18 of these have been licensed after fully complying with the requirements.

“Thus, for the first time in the history of tobacco marketing in Zimbabwe, electronic marketing of tobacco will be witnessed, running side by side with conventional system of marketing on the auction floor,” she said.

The country is expected to record a 20% decline in tobacco output this year from 198 million kgs produced in 2015. A total of 72 000 growers have been registered for this year.