Source: Increased auction floors will bring better tobacco prices — Govt – herald
Business Reporter
The Government has applauded the launch of Ethical Sales Floors as the country’s third tobacco auction floor, saying increased competition will drive competitive bidding that will ensure higher prices.
Speaking at the official opening of the 9 000 square meter facility capable of handling 7 000 bales per day yesterday, Deputy Minister of Lands, Agriculture, Fisheries, Water and Rural Development, Mr Vangelis Haritatos, said the licensing of the Ethical presented a bold step towards innovative business practices, enhanced efficiency and greater farmer empowerment.
Zimbabwe operates a dual tobacco marketing system consisting of auction and contract platforms.
Under the auction system, self-funded farmers sell their crop at the floors, whereas the contract system requires growers to sell directly to the merchants who provided their production inputs.
The auction system remains a critical pillar of the industry, serving as the primary price discovery mechanism. Its performance sets the benchmark for contract prices, ensuring that market vibrancy translates into fair value across all trading floors.
“Allow me to extend heartfelt applause to the Tobacco Industry and Marketing Board (TIMB) for their visionary initiative in licensing the Ethical Sales Floor,” said Mr Haritatos in a speech read on his behalf by TIMB chief executive Mr Emmanuel Matsvaire.
“This bold step has sparked innovative ways of doing business — enhancing efficiency, transparency, and farmer empowerment — truly transforming our tobacco industry for the better.”
The tobacco auction facility commenced operations at the onset of the current marketing season, with its official opening coinciding with the landmark launch of Ethical cigarette brand.
The move aligns with the Government’s value addition and beneficiation strategy, aimed at maximising returns from the tobacco value chain.
“At the core of today’s events is our shared commitment to value addition and beneficiation, as enshrined in the Tobacco Value Chain Transformation Plan 2,” said Mr Harritatos.
“The new Ethical cybertec-powered floors will process and grade tobacco in country, capturing greater value locally rather than exporting raw leaf.
This means fairer prices, reduced logistics costs, and thousands of jobs for our youth.”
He said the launch of the cigarette brand elevates the value addition strategy further, providing a premium, Zimbabwe-made product that transforms beneficiated tobacco into a world-class offering.
“Aligned with Plan 2’s targets, this initiative boosts domestic value addition towards 70 percent by 2030, builds agro-industrial capacity, and reinvests profits into farmer training and infrastructure. Over 10 years, Ethical Holdings has empowered smallholders, introduced tech-driven projects, and set a benchmark for the sector.”
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