eBusiness Weekly
Livingstone Marufu
Tobacco farmers are in a big dilemma as to what they can do to realise real profits in a billion-dollar industry, which has kept the country’s economy running in the past five years.
Tobacco is the country’s biggest foreign currency earner, but the tobacco farmers especially small scale farmers, have nothing to count for as they are prejudiced by merchants, contractors, middleman, thieves and hookers among other people.
According to the tobacco industry regulatory board, Tobacco Industry and Marketing Board (TIMB), farmers have earned a total of $495,9 million in the first 50 days of the marketing season, but the billion dollar question is that has that money benefited them?
Independent investigations suggest that farmers are getting nothing from their crop throughout the value chain instead buyers, middlemen and contractors are benefiting from the rich pickings.
Middlemen may be prejudicing farmers but that cannot be easily seen or calculated in monetary terms.
Buyers may be manipulating prices by corrupting the e-marketing system, which calculates the amount of work and effort put by the farmer to cure his or her tobacco and determines the price of the crop but it is very difficult to tell where the prejudice is.
Despite these shortcomings, buyers can be credited for very good prices that they are offering to farmers as they are selling the crop at an average price of $2,90 per kilogramme against last year’s price of $2,88/kg.
Much dip rooted rot is in the contract system where farmers may be prejudiced of millions of dollars by contractors.
Currently, of the $495,9 million earned by farmers so far $423,4 million was earned by contracted farmers.
In some instances contract system has improved many livelihoods and has helped various farmers to get to another step and for that reason, the Government has put in place the Command Agriculture Scheme to help those who can’t afford inputs and labour.
But in this case, contractors are said to be taking independent farmers’ crop when they haven’t given them any support.
They are just taking farmers crop because they have jotted down people’s names some time ago but didn’t give them any support.
Such notable contractors include BoostAfrica and Agritrade among other contractors.
These contractors are said to be forcing farmers to sell their tobacco for a pittance at their respective floors then later resell the crop for very attractive prices.
In an interview with one of the farmers, Terrence Kapinga from Guruve, he told Business Weekly that he ended up selling tobacco to a contractor against his wishes.
“I delivered my tobacco to Tobacco Sales Floor a fortnight ago only to be told that I was contracted to this company which only wrote my name two years ago when they promised to sponsors us which they did not do.
“I went to TIMB for decontracting but the process was long and hectic and I finally sold my tobacco to the company for around $1, 60 per kg which was way below the current average price per kg of $2,87.
“We are said to be biggest earners of foreign currency in the country, but we are the poorest people in the country, we don’t want donations but we want our tobacco to be have a good price,” said Kapinga.
Thousands of independent tobacco farmers could be losing millions of dollars as they are being forced to sell their crop for a pittance to syndicates comprising corrupt merchants.
Investigations revealed that several independent growers who fell victim to the ploy are being chased away from the auction floors on accusations of side marketing because their produce would have been registered under contract farming by the unscrupulous dealers.
Scores of farmers confirmed this unethical practice was taking place and becoming more pronounced each season, accusing the merchants of registering them without their knowledge.
Noah Nherera from Rusape said: “I joined BoostAfrica a season ago thinking that I was going to improve my livelihood and productivity at the farm only to realise that I have set myself a death trap as they took my crop for nothing.
“Due to very little money they offered per kilogramme, I was not able to cancel my debt instead I had to folk out my own money to finish the debt off.
“This year I came to the floors with my self-financed golden leaf only to find out that I was still tied to Boost Africa, which I had since parted ways with them last season.
“Decontracting with TIMB is a menace which can take up to three or four days, I couldn’t wait to finish it off and I ended up selling to them for a ride when I wasn’t contracted to them,” said Nherera.
Zimbabwe Farmers Union (ZFU) said they are taking action to prevent this from happening now and in the near future as they have set up teams to protect small scale farmers from the potential prejudice.
