Farmers pocket US$143m as auction activity picks up 

Source: Farmers pocket US$143m as auction activity picks up | The Sunday Mail

Precious Manomano

Agriculture Reporter

ACTIVITY at the tobacco auction floors has started picking up, with farmers earning US$143 million from the 41,6 million kilogrammes of flue-cured tobacco that has gone under the hammer since the beginning of the marketing season last month.

Deliveries at the auction floors have started increasing as many farmers finish grading and baling.

Most farmers have also expressed satisfaction at the prices being offered, which they described as viable.

The growers, however, expect the prices to continue firming as the season progresses and the quality of the leaf improves.

According to the Tobacco Industry and Marketing Board (TIMB) statistics, the bulk of the crop has been sold through contract floors, while low volumes have come from self-financed farmers.

By day 23, 39,2 million kg, valued at US$135,2 million, had been sold by contracted growers, while 2,4 million kg worth US$7,7 million had come from self-financed farmers.

According to TIMB, last year, farmers had sold 56,7 million kg of flue-cured tobacco valued at US$200 million.

The average price on day 23 was US$3,43 per kg, compared to US$3,53 last year.

Contract floors have continued to register higher prices, with the highest price of US$6,30 per kg offered so far coming from contract sales.

The highest price at the auction floors has remained at US$4,99 per kg.

The lowest price of US$0,10 per kg has been recorded.

Raffingora farmer Mr Peter Petere, who is a first-time tobacco grower, said he was happy with the payment modalities at the auction floors.

“I cannot complain; payments are done early. I sold my eight bales and got reasonable amount. I am very happy,” he said.Similarly, Mrs Precious Nyoka from Chikomba, who sold 21 bales, said she was expecting to deliver more tobacco to the floors.

“I cannot my my happiness. I have plans to invest in education to improve my future,” she said.

Mr Arthur Zhangu from Odzi said: “Selling 24 bales is not a joke. All my bales were sold at US$4,99 each.”

Premier Tobacco Auction Floors operations manager Mr Sam Garabha noted the positive trend in deliveries so far, indicating that there was a possibility of attaining the national target of 280 million kg.

“Most of the crop is still in the fields, but we are witnessing improvements in deliveries.

“This week (last week) has seen significant progress, and some merchants who were not participating are now coming on board,” he said.

“The participation of merchants has really improved. Our farmers are quite happy and excited with the offers they are receiving at the auction floors, although we expect better quality. During the past week, we were receiving lower and middle grades, but, as the harvest continues, we are noticing significant improvements in prices.

“Deliveries are expected to increase, and we believe we can reach the 280 million kg target. The crop is still in the fields in areas like Guruve and Mt Darwin

“High volumes are expected. We are pleased with the participation of farmers, and they should prepare well for the next season.”

The increase in tobacco production has been attributed to viable prices, an organised market and availability of funding through contractors and the Government.

Tobacco has earned a strategic position in the economy because of its contribution to the gross domestic product and foreign currency earnings.

Zimbabwe has become the major producer of flue-cured tobacco in Africa and occupies fifth position in the world.

Many communal farmers joined the lucrative farming sector following the Land Reform Programme.