Zimbabwe has realised US$650,3 million from tobacco sales this year, up 10,3 percent compared to last year, statistics from the Tobacco Industry and Marketing Board (TIMB) show.
Last year, the country earned US$589,6 million from the sale of 211,1 million kilogrammes of tobacco.
“TIMB wishes to advise all stakeholders that the final sale of tobacco for the 2022 tobacco marketing season was on 21 October 2022. Therefore, all contract and auction floors are closed. As of October 21, 2022, a total of 212,711,370 kilogrammes of tobacco had been sold at a value of US$650 308 534,” TIMB said in an update this week.
“This is an increase when compared to 211,100,219 kilogrammes sold during the same period in 2021 at a value of US$589 573 827. The increase in tobacco sold as well as the value is evidence of our efforts as an industry to establish a US$5 billion industry by 2025.”
Average tobacco price for 2022 stood at US$3,06 per kg compared to the US$2,79 realised the previous selling season.
Apart from erratic rainfall which affected planting, farmers were affected by viability issues. For instance, the costs of production went up as demand for the United States dollar component in the operations grew.
The government mandated that 75 percent of sales would be paid in the greenback; while the remaining 25 percent would be paid in the local currency, converted at the prevailing auction exchange rate on the day of sale.
Tobacco is a capital-intensive cash crop.
The number of new tobacco growers for the 2021/22 season declined by 50 percent compared to the previous year, TIMB noted. As a result, tobacco hectarage decreased by 11 percent from 125,176ha to 110,770ha.
Tobacco production in the country remains heavily dependent on rainfall which makes it susceptible to climate change. False and flush ripening of the tobacco crop were experienced due to excessive rain, resulting in barn space being a major constraint.
In its 2021 annual report, TIMB reported that the Far East had been the top-most destination for Zimbabwean tobacco since 2012, absorbing 52 percent of total tobacco exports in 2016 and 40 percent in 2021. Of that market, China and Indonesia are the main buyers of Zimbabwean tobacco.
The board also revealed that the European Union and Africa were also significant destinations for Zimbabwean tobacco — absorbing a combined 38 percent of total tobacco exports in 2021. – NewsDay
