Farmers earned US$125 095 from the sale of 48 938kg of flue-cured tobacco on the opening day of this year’s tobacco marketing season.
The highest price offered by buyers at the auction floors was US$4,66 per kg, which was 30c lower than the US$4,96 per kg offered on the opening day last year.
Usually, the farmers test the waters on the first day of the auctions, sending in lower quality leaf while reserving the best leaf for when prices are firm.
Farming organisations were not dissatisfied with the prices on offer on the first day.
Last season, farmers sold 94 453kg of tobacco worth US$243 503 on the first day of the marketing season.
The 2023 marketing season opened on Wednesday, with contract marketing, which accounts for the overwhelming bulk of the crop, starting yesterday.
The auctions opened almost three weeks earlier than last year.
Tobacco Industry and Marketing Board (TIMB) statistics indicate that 628 bales were laid, with 578 sold compared to 1 179 bales sold last year.
Some contractors said they offer more money to incentivise their farmers, while others said they would have invested a lot of money in the production of the crop, and will offer a higher price to prevent side marketing.
Deliveries are expected to start picking up from today.
Tobacco Farmers Union Trust vice president Mr Edward Dune said farmers were expecting higher prices on the opening day of the marketing season, adding that production costs were also higher.
“The prices set on the opening day signalise that prices will also decline after supply increases. We were expecting around US $5 per kg so that it covers all the costs we have incurred in tobacco farming,” he said.
Mr Dune said he was expecting the prices to continue improving as the season progresses.
He also applauded Government for increasing foreign currency retention to 85 percent adding that it will motivate more farmers to join tobacco farming.
Tobacco Farmers Union Trust president Mr Victor Mariranyika said all farmers were looking forward to a rewarding tobacco marketing season.
He said prices are fair adding that middlemen should be eliminated and farmers should sell their crop through the normal channel if they were to enjoy profits.
“Middlemen should not interfere; you need not to pay money to a third party to get better prices as good quality tobacco will attract better prices. We were expecting higher prices on the opening day like what happened last year. We are concerned with the prices offered so far but we hope this will change as the season progresses,” he said.
Tobacco production has been on the increase for the past years. Government has encouraged farmers and the tobacco industry to venture into value addition to increase value of exports in line with the Transitional Stabilisation Programme and Vision 2030 of uplifting the country to become an upper middle income society.
Last year, tobacco farmers earned US$650 million from the sale of 213 million kg of tobacco since the opening of the marketing season.
Tobacco is ranked as one of the most economically important non-food crops in Zimbabwe, earning billions in local currency equivalent annually.
The growing of the crop contributes significantly to improving the livelihoods of many people, from the farmers in the main tobacco areas, to the merchants and to the processing done locally before the leaf is exported. – The Herald
