US$571 million worth of tobacco sold

Source: US$571 million worth of tobacco sold | The Financial Gazette August 18, 2016

THE closure of the tobacco auctions after 90 days of sale saw the country earning US$571 million from 194 million kilogrammes of tobacco.

Despite the closure of the auction floors, contract sales are continuing with sales after 92 days of sale indicating that the sales had gone up to 196 million kg valued at US$576 million.

The industry had targeted 160 million kg but the crop has since surpassed the set target by 35 million kg. The El Nino induced drought which caused long dry spells, had forced the industry to set targets below last year’s production of 198, 6 million kg.

The average price at the auction floors was US$1,94 per kg while the contract sales were averaging US$3,03 per kg

Tobacco is one of the country’s major agricultural exports, accounting for 10,7 percent of gross domestic product.

Major export destinations for Zimbabwean tobacco include South Africa, China, United Kingdom, Indonesia, the United Arab Emirates, Mauritius and Russia.