Tobacco exports double

Precious Manomano Herald Reporter

Zimbabwe has so far this year exported over 52 million kgs of tobacco worth over US$351 million compared to 21,5 million kg valued at US$106 million sold last year during the same period as the country continues to make strides in tobacco production.

So far, for the whole of last season, Zimbabwe exported a record crop of US$1,2 billion slightly below its target of over US$1,6 billion. While the crop is sold over a few weeks by the farmers, the merchants continue exporting throughout the year which is why a significant amount of tobacco is exported in the first few months of each year before the new crop is delivered.

Zimbabwe exports partly or whole stemmed and stripped tobacco, some that is not stemmed or stripped, tobacco refuses, cigars, cheroots and cigarillos containing tobacco, cigarettes and manufactured tobacco.

Statistics indicate that Zimbabwe is the largest grower of tobacco in Africa and is ranked sixth globally following China, India, Brazil, the United States of America and Indonesia. These top five have very  large populations, with India, China, USA and Indonesia being the four biggest countries by population and Brazil coming seventh, so they absorb a lot of their crop for local consumption, with China even importing from Zimbabwe. Just one percent of the local crop goes to local demand, with Zimbabwe 74th on world population ranking.

Last season the country produced 297 million kg of tobacco the largest crop in the history of Zimbabwe since tobacco growing started.

Statistics from the Tobacco Industry and Marketing Board (TIMB) indicate that 38 859 852 million kg of tobacco worth US$307 745 562 million was exported to Far Eastern countries at an average price of US$7,92 per kg.

About 4,017 945mkg of tobacco worth US$11 902 342 million was sold to African countries at an average price of US$3,46 per kg.

Over 22 million kg valued at over US$54 million was exported to the Middle East at an average price of US$ 2,96 per kg.

About 2 978 554 million kg of tobacco valued at US$8 466 644 million was exported to the European Union at an average price of US$2,84 per kg.

Over 1,1 million kg of tobacco was exported to Europe at over US$5,3million at an average price of US$4,72.

The country exported 1,9mkg of tobacco valued at over US$8,7 million to the Americas at an average price of US$4,7 per kg.

Tobacco farmers are geared for a smooth marketing season which is set to open on 13th March for auction floors while the contract tobacco sales will commence the following day.

Currently, farmers are in the process of reaping the crop in preparation of the marketing season.

Last season, growers were paid 75 percent directly into their foreign currency accounts and this was treated as free funds while 25 percent local currency was deposited into the growers’ local bank accounts or e-wallets. The authorities have said this will be maintained this year.

TIMB has also indicated that the US dollar retention was standardised at 75 percent in line with the retention level for other market players so 25 percent will continue to be paid to tobacco growers in local currency.

Agriculturist and Tobacco Farmers Union Trust vice president Mr Edward Dune said merchants are benefiting more in tobacco production adding that farmers who are the primary producers are not getting enough.

‘’Tobacco is labour intensive and tobacco production is viable at large scale and above. Farmers need to diversify into less intensive crop like Shisha because it is more friendly to the smallholder. Less labour is needed and there is no high nicotine content. In order to get into productive farming farmers should sign contractual agreements which they fully understand to ensure that they get what they deserve,’’he said.

He also said farmers were geared for the marketing season adding that a meaningful harvest is expected although climate change affected the crop.

‘’We can achieve 70 percent of last year’s product. The climate was tricky because some of the crop was compromised by the climate. This is the right time to sell our crops. We want money to circulate because this is the agro-based economy,” he said.

Export of tobacco products has been on an upward trend, with earnings of US$795 million in 2020, US$837 million in 2021 US$998 million in 2022 and US$1,2billion last year.

Recently, Zimbabwe Tobacco Growers Association chairman George Seremwe indicated that farmers are doing well in tobacco farming although he would like to eliminate middlemen to ensure that farmers get what they deserve.

‘’Farmers are working hard and we hope they will make profit if they continue growing the crop, TIMB must work on reducing or eliminating the participation and licensing of surrogates (middlemen) who are putting huge mark-ups on their services to the detriment of farmers,’’ he said.

Currently, more than 70 percent of tobacco is produced by small-scale farmers and this is in line with the Government’s economic transformation agenda that leaves no region, no village , no category of farmers behind.

Zimbabweans smoke under one percent of what their farmers grow, and hence the crop is almost entirely an export crop.