Tobacco grosses nearly $400m

Tobacco grosses nearly $400m

Livingstone Marufu
Tobacco farmers have grossed $398,4 million from 137,3 million kilogrammes that have been delivered 42 days into the 2018 marketing season, a gain of more than $50 million on revenues realised during the same period a year ago. During the same period in 2017, farmers earned $348,8 million after delivering 122,7 million kg.

According to Tobacco Industry and Marketing Board (TIMB) daily tobacco trade updates, of the $398,4 million earned so far, contracted farmers have pocketed $348,7 million after delivering 116,1 million kg, with the auction floors accounting for only $59,7 million after taking delivery of 21,2 million kg.

The average price at the auction floors is $2,81 per kg against $2,90 being offered to contract farmers.
Meanwhile, the average price has igone up 2,1 percent to $2,90 per kg from last year’s $2,84.

“As far as tobacco export earnings are concerned, Zimbabwe has so far earned $123,4 million from 28,4 million kg of tobacco exported mainly to Indonesia and China since the beginning of 2018. Tobacco has been exported to 39 countries so far.
“China accounted for over 7,09 million kg valued at $47,4 million while Indonesia bought 3,1 million kg valued at $15,1 million,” reads part of the TIMB’s latest weekly bulletin.

With an estimated 350 million smokers, China has been spending over $200 million per annum on Zimbabwean tobacco, regarded among the best in the world.

Belgium has this year bought 3,2 million kg valued at $8,7 million at an average price of $2,73 per kg.
South Africa has so far bought 2,4 million kg worth $6,8 million (average price of $2,76/kg), followed by Russia, which has spent $5,9 million on 1,8 million kg, while Sudan has bought 1,5 million worth $4,4 million.

Other buyers are from Bulgaria, Vietnam, Hong Kong, France, the Netherlands, Germany, Nigeria, Taiwan, Spain and Tanzania.

However, the tobacco export proceeds are $85 million shy of last year’s figures for the same period.
During last year’s comparative period, tobacco exports generated $205,2 million from a total of 42,6 million kg.
Tobacco is presently being exported at an average price of $4,43/kg compared to $4,81 (during) the same period last year.
Tobacco is Zimbabwe’s biggest foreign currency earner followed by gold.

Last year exports of the “golden leaf” topped $900 million, which was a marginal decrease from the $933 million posted the previous season.

Across the country, the area put under tobacco has slightly decreased from 110 518 hectares last year to 104 397ha.