Tobacco marketing season opens amid high hopes for better prices

Precious Manomano-Herald Reporter 

Farmers have started delivering tobacco to the two licenced auction floors ahead of the opening tomorrow, with high expectations for better prices this season.

Deliveries of the contract crop start on Thursday.

Tobacco growers were affected by poor rains and those who have a good crop expect better prices on the back of a huge appetite for the Zimbabwean leaf.

According to the Tobacco Industry and Marketing Board (TIMB), Zimbabwe had exported 233 896 182 kilogrammes of the golden leaf valued at US$1,224 billion as of December 15, 2023. 

The average price for the shipments was US$5,23 per kg compared to US$4,96 a kg during the same period in 2022.

Farmers last season expressed satisfaction with the prices amid indications that exports will increase this marketing season.

This year’s official opening ceremony will be held tomorrow morning at the Tobacco Sales Floor where Vice President Dr Constantino Chiwenga is expected to officiate. Deliveries for the far larger contract crop start on Thursday, a day later, but the auction floors, although selling only around 5 percent of the crop, are the major price setter and so need to be active first.

Farmers will get 75 percent of their price in foreign currency with the remainder being disbursed in local currency. This year two auction floors, Tobacco Sales Floor and Premier Tobacco Auction Floors, have been licenced by the Tobacco Industry and Marketing Board to buy leaf.

When The Herald visited the auction floors in Harare yesterday, officials were busy arranging trolleys to ensure that bales move smoothly. Clinics are well equipped to take care of any emergencies which may arise within the floors. Banking facilities are ready on the floors, running water and sanitisation are in place to curb cholera and Covid-19. Shops and agro-dealers are geared up for business on the floors.

At PTAF, over 40 bales have been delivered for the past two days waiting for the floors to open while at TSF deliveries were still flowing in yesterday ahead of the opening of the marketing season. 

PTAF chairman Mr Owen Murumbi said they are anticipating a good season with farmers expected to get their money on time; the payment systems introduced would be friendly to the majority of farmers. “We have finished all preparations. The banks are now lined up, EcoCash and Mukuru are all there to bring more convenience to the farmers. 

“We have started receiving bales,” he said.“We should surpass last year’s figures although the volumes are low. We don’t expect them to go down. Farmers need to come and we are offering excellent services. We are starting with Mukuru and EcoCash on day one. This should improve payment systems for farmers.’’ 

“Tobacco sales floors should implement strict age verification processes to ensure that only adults can access the premises. All selling points shall ensure there are no children under 18 in and around selling premises, tobacco processing factories and any other tobacco storage and handling facilities.

“Sales floors should prominently display awareness campaigns that highlight the issue of child labour in tobacco production, posters and educational materials that provide information about the harmful and unethical practices associated with child labour,’’ he said.

Selling floors would accept tobacco deliveries from 6am to 5pm, with trucks arriving outside the permissible time being turned away. A maximum of only two people are allowed on board the tobacco delivery trucks (driver and assistant only) and the “deliver today and sell tomorrow” principle will be enforced in full.

TIMB has also come up with a transporter compliance framework which will work towards developing a vibrant system that monitors the movement of tobacco from the primary source up to the market. 

This is expected to minimise losses, enhance farmer viability and improve livelihoods. The framework seeks to counter challenges in the tobacco industry such as criminal activities like side marketing, tobacco bale theft, bale swapping and forgery on stop order launching.

Contract tobacco sales will be conducted in Harare and the approved decentralised selling centres of Karoi, Mvurwi, Bindura, Marondera and Rusape with 44 selling points. These were set up during Covid-19 to minimise travel and proved so successful that they were maintained, allowing farmers to sell within the tobacco belt.

Prices on auction floors will be determined by the bidding process where the highest bid will be the final price on every tobacco bale. About 132 375 growers have been registered and 119 320 were contracted this season. The country is targeting 260 million kg this season. Last year produced 297 million kg of the golden leaf and generated US$1,2 billion.  

Tobacco farmers are expecting TIMB to deal with the issue of middlemen who rip them off. Mrs Barbra Marava of Banket said timeous payment is important for farmers to retain value for their crop.

“We appeal to the authorities to ensure that tobacco sold at the auction floors get similar prices with the one which is sold at the contract floors. Farmers incur similar costs and there is no reason to offer them different prices like before,” she said. 

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