Source: Zim should seek new tobacco markets to absorb output surge – herald
Tapiwanashe Mangwiro
Zimbabwe needs to aggressively seek new tobacco export markets to maintain firm domestic prices, as traditional buyers can no longer absorb the country’s high output volumes, the Parliamentary Portfolio Committee on Lands, Agriculture, Fisheries, Water and Rural Development has said.
The parliamentary committee, chaired by Chivi South legislator Felix Saul Maburutse, has undertaken fact-finding visits to tobacco sales floors in Mashonaland East, Mashonaland West, Manicaland, and Harare.
There has been general concern among farmers that prices have largely remained below expectations this season.
The regulator and industry players say the lower tobacco prices this season are primarily driven by global oversupply, reduced purchasing demand from China, and low initial participation from buyers. Following a record harvest of 354 million kilogrammes last year, many tobacco merchants still hold significant unsold stocks, which has dampened prices.
If Zimbabwe achieves another expected record-breaking output of about 400 million kg this season, the inventory glut may exert further downward pressure on prices. Furthermore, China — traditionally Zimbabwe’s top tobacco export destination — has significantly reduced its imports by 15 million kilogrammes.
This has placed significant downward pressure on the market, with average prices currently 19 percent lower than last year at the same stage, although they have firmed markedly compared to season-opening levels.
“What we have noticed is that some tobacco contractors still have large volumes from last season which they have not managed to export,” said committee chairman Mr Maburutse.
He was speaking during a visit to the newly opened Ethical Leaf Tobacco floors in Harare, part of the committee’s familiarisation tour of the industry’s marketing facilities. “Most of them have been relying on traditional buyers, which means we should encourage them to look for new buyers.
If someone is buying a new product while they still have old stock they have not exported, definitely the price will go down.”
Mr Maburutse said the committee would compile findings from its tours of sales floors and submit recommendations to the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development.
Ethical Holdings executive chairman Mr David Machingaidze noted that while prices have softened this season compared to 2025, signs of recovery were beginning to emerge as the marketing season progressed.
“As a new player, first time running an auction floor, we are very happy with the recognition that we have been given by the committee,” he said. “I think it reassures us that the committee is a key stakeholder, and when a key stakeholder takes an interest in the business, it gives us a platform to communicate areas of concern.”
He noted that Ethical Sales Floor had already recorded strong bids during the early stages of trading.
“The highest bid (on the contract floor) we saw this morning was about US$5.20 per kilogramme,” he said.
Mr Machingaidze acknowledged that the lower average prices this season were affecting farmers’ ability to repay loans and reinvest in production. “The prices are lower than last year and this has a direct bearing on the farmer’s ability to pay off his debts and continue farming at the same levels,” he said.
Ultimately, he added, tobacco prices were shaped by international market forces.
“We acknowledge that price is a function of global demand and supply dynamics,” he said. However, he noted the industry was actively pursuing new export markets to reduce dependence on a small number of buyers.
“There is always a constant drive to open up new markets and effectively achieve diversification of risk where we are not completely dependent on just a few markets,” said Mr Machingaidze.
“In fact, we have gone out and secured additional markets which will go a long way towards ensuring that the tobacco we purchase is sold.”
Farmers who spoke during the committee’s visit said the drop in prices had heightened pressure on growers already dealing with rising production costs. M. Tawanda Murehwa, a tobacco farmer from Mvurwi, told the committee chair that the price decline was eroding farmer profitability.
“We are worried because the prices this year are not the same as last season,” he said. “As farmers, we invest a lot into producing tobacco—fertiliser, labour, and curing costs—so when the price goes down, it becomes difficult to recover what we have spent.”
He urged authorities and contractors to accelerate efforts to secure new international buyers.
“If the industry can expand export markets, it will help stabilise prices and ensure farmers remain viable.”
Zimbabwe remains one of the world’s leading producers of flue-cured tobacco, with the crop playing a critical role in rural livelihoods and national export earnings.
However, industry observers say sustaining the sector’s growth will increasingly depend on improved productivity, stronger contract management, and, crucially, the successful diversification of export markets.
The post Zim should seek new tobacco markets to absorb output surge appeared first on Zimbabwe Situation.