eBusiness Weekly
Livingstone Marufu—
HARARE – Tobacco farmers have grossed $574,5 million from 197,3 million kilogrammes that have been delivered 59 days into the 2018 marketing season, a gain of more than $120 million on revenues realised during the same period a year ago.During the same period in 2017, farmers earned $453,2 million after delivering 155,9million 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 $492 million after delivering 168 million kg, with the auction floors accounting for only $81 million after taking delivery of 29,2 million kg.
The average price at the auction floors is $2,79 per kg against $2,93 being offered to contract farmers.
Meanwhile, the average price remains flat at $2,91 per kg.
As far as tobacco export earnings are concerned, Zimbabwe has so far earned $153,6 million from 36,1 million kgs of tobacco exported mainly to Indonesia and China since the beginning of 2018.
So far, tobacco has been exported to 47 countries.
China accounted for over 7,8 million kgs valued at $50,1 million while Indonesia bought 4,6million kgs valued at $21,4 million.
With an estimated 350 million smokers, China has been annually spending over $200 million on Zimbabwean tobacco, which is regarded among the best in the world.
Belgium has this year bought 3,9 million kgs valued at $11,7 million at an average price of $2,99 per kg. South Africa has so far bought 4 million kgs worth $10 million at an average price of $2,50 per kg; followed by Russia , which has spent $5,9 million on 1,8 million kgs; while Sudan bought 1,1 million kgs worth $5,1 million.
Other buyers are from Bulgaria, Vietnam, Hong Kong, France, Netherlands, Germany, Nigeria, Taiwan, Spain and Tanzania.
However, the tobacco export proceeds are $71 million behind last year’s exports for the same period.
During the same period last year’s tobacco exports generated $231,7 million from a total of 49,7 million kgs.
Tobacco is Zimbabwe’s biggest foreign currency earner, followed by gold.
Last year, tobacco exports topped $900 million, which was a marginal decrease from the $933 million recorded during the previous season.
Government is targeting to reach 215 million kgs of tobacco by 2020.
