Tobacco prices have strengthened in the closing stages of Zimbabwe’s 2026 marketing season, offering some relief to growers after months of complaints over low returns.
The season was widely criticised by farmers after opening prices fell sharply, with some tobacco selling for as little as 60 US cents per kilogramme. However, growers are now receiving better prices than during the same period last year as competition among buyers intensifies.
At the centre of the recovery is Ethical Sales Floor (ESF), a new entrant that has emerged as a price leader on both contract and auction floors.
Latest Tobacco Industry and Marketing Board (TIMB) data for days 69, 70 and 71 of the marketing season show average prices firming to about US$1.90 per kilogramme.
Farmers in Mashonaland West, Mashonaland Central and Manicaland said ESF has consistently offered higher prices for premium grades than rival buyers, prompting competitors to increase their bids.
ESF general manager Tyson Ngongoni said the company was encouraged by its impact on the market despite challenging trading conditions.
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“Considering it is our first year, we have managed to make an impact on the market. Next season, all things being equal, we believe farmers will view us as their preferred buyer based on our pricing,” Ngongoni told NewsDay.
Industry players said the improvement in prices had come late in the season but was nevertheless welcome.
“There has been concern across the sector, particularly as some players underestimate the impact climate change could have on next season’s crop. It is encouraging that some farmers are now receiving fairer prices,” said a tobacco merchant who declined to be named.
Zimbabwe is targeting tobacco output of 400 million kilogrammes this season, but growers say subdued prices have eroded profitability despite strong production volumes.