HomeBusinessTobacco sales rake in $300m

Tobacco sales rake in $300m

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TOBACCO sales have so far raked in close to $300 million as of Monday, latest statistics have shown, as farmers continue to deliver the golden leaf.

BY TARISAI MANDIZHA

According to the latest statistics from the Tobacco Industry and Marketing Board (TIMB), tobacco worth $280 million has been auctioned so far.

In the same period last year, 77 million kg of tobacco was sold, raising $220 million.

Tobacco sales have increased by 29,74% to 100 million kg as compared to 77 million kg auctioned last year.

The seasonal average price stood at $2,80 on Monday, compared to $2,86 per kg during the same period last year.

The contract farming system has so far handled 80,8 million kg and the auction system has recorded 19 million kg.

Contract floors contributed 80% of seasonal total tobacco sales against 20% for the auction floors.

In the period under review, Tobacco Sales Floor bought tobacco at an average price of $2,83 per kg, Boka Tobacco Auction Floor at $2,73 per kg and Premier Tobacco Auction Floor at $2,78 per kg, while the contract average price per kg was $2,80.

At least 1 411 304 bales were accepted, while 81 054 were rejected for various reasons. For the 2016/2017 season with defective bales such as mouldy or mixed grades remaining the major reason for rejection.

According to TIMB, 45,6 million kg has been exported to 47 destinations, compared to 41,6 million kg exported to 37 destinations during the same time last year with China remains the major export destination followed by Belgium and Russia.

In the period under review, 2017 export revenue of $214,7 million is 11% lower than revenue received during the same period last year.

The 2017 average export price is 15 % weaker $4,71 per kg against $5,84 per kg in the prior year.

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