Rainos Kamutsa (54) of Chinhere Village under Chief Mjinga in Hurungwe East, Mashonaland West, is watching his livelihood hang by a thread. A contracted tobacco farmer for the past five years, he says the arrangement has left him trapped in a cycle of debt.
“I am yet to gain full control of my tobacco farming. I receive inputs for one hectare, but the repayment costs are too high, making life difficult for me and my family,” he said.
Each year, Kamutsa travels nearly 80 kilometres to Karoi to sell his crop after securing a booking, following the decentralisation of tobacco auction floors. He is among hundreds of farmers reeling from poor prices this season — a blow many fear could push them out of production.
“This year feels like the final blow,” he said. “The devil is smiling at us and misfortunes are mounting. A price of 80 cents per kilogramme breaks our spirits. It is pathetic. Only a few will manage to repay their loans and continue next season.”
Kamutsa produced 1,000 kilogrammes of tobacco but earned less than US$600 — far below viability.
His story reflects a broader crisis gripping Zimbabwe’s tobacco sector, where the once-lucrative “golden leaf” is increasingly burdened by global oversupply, low prices and mounting farmer debt.
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Zimbabwe Tobacco Growers Association president George Seremwe said farmers are failing to break even.
“Farmers are not making any meaningful profit. We have engaged the Tobacco Industry Marketing Board (TIMB) to push for better prices so that growers can at least cover production costs. Contract farmers are bearing the brunt,” he said.
Seremwe urged government intervention through a sustainable local financing model.
“Most farmers are effectively working for foreign contractors, with losses felt locally. Government must act to protect farmers and ensure viability of the sector,” he said.
A senior buyer with an international firm, speaking on condition of anonymity, warned that prices are unlikely to improve in the short term.
“Global oversupply will keep prices subdued this season. Zimbabwe continues to push for higher production without addressing price stability,” he said.
He called on TIMB to adopt a more strategic, data-driven approach.
“As regulator, TIMB must go beyond driving volumes and instead align production with market demand. Reinstating market research and setting informed production targets can help stabilise the sector and protect farmer incomes.”
Contracting companies are already adjusting. Tian Ze Tobacco Company, for instance, reduced its contracted farmers from 220 in the 2024/25 season to around 190 for 2025/26, while projecting purchases of 31 million kilogrammes.
A company official said the focus would shift towards quality over quantity.
“Tobacco is a global commodity, and prices are driven by international demand. We will maintain our contract scheme but prioritise quality production and continue supporting our farmers,” the official said.
Another merchant echoed calls for local financing.
“Most international companies operate offshore accounts, leaving little value within the country. There is an urgent need to localise funding to sustain the sector,” he said.
TIMB chief executive Emmanuel Matsvaire said the regulator remains committed to fair trade and farmer protection.
“We are working to ensure the marketing system evolves in a way that safeguards farmers, promotes fairness and enhances value across the chain,” he said.
“As an industry, we must uphold trust, integrity and accountability. Ethical conduct is now central to sustainability, market access and long-term growth.”
Meanwhile, Cabinet recently approved the Tobacco Value Chain Transformation Plan 2 (2026–2030), presented by Lands, Agriculture, Fisheries, Water and Rural Development Minister Anxious Masuka. The plan aims to build a US$7 billion tobacco industry by increasing output to 500 million kilogrammes by 2030, while expanding irrigation, mechanisation and climate-smart agriculture.
It also seeks to localise 70% of tobacco financing, reduce reliance on offshore funding, and diversify export markets under the African Continental Free Trade Area.
Zimbabwe produced 354.8 million kilogrammes of tobacco in the 2024/25 season, exceeding targets, while earnings reached a record US$1.2 billion. The number of growers has risen to over 135,000 households.
However, for farmers like Kamutsa, such macro-level gains offer little comfort.
“What matters is what I take home to feed my family,” he said.
As prices remain depressed and debts mount, many contracted farmers continue to operate on the margins — tethered to a system that offers diminishing returns and an increasingly uncertain future.