Leaf Sales Down

Leaf Sales Down

Zimbabwean tobacco producers earned $722 million less than last year in the first 56 days of the current season (2024).

According to the report of the Management of Communication and International Affairs, quoted by Tobacco Reporter, contract producers and the private sector in Zimbabwe earned more than 600 million dollars in the first 56 days of the current season (year 2024), which is 722 million dollars less than last year.

The most recent season was impacted by an El Nino-induced drought, which caused the season to start late and end early.

Tobacco Industry and Marketing Board statistics revealed that farmers had cumulatively sold 173.76 million kilograms of tobacco worth $607.08 million by Day 56 under both the auction and contract systems. This represents a 16 percent decline in earnings from the comparable 2023 period.

 In volume terms, the leaf sold was 27 percent below the 239.56 million kg sold last season. The average auction price was $0.12 higher than that at the contract floors.

Some stakeholders remained positive about the remainder of the season. “On the back of an El Niño-ravaged season, we need to celebrate the 174 million kilograms achieved to date,” said Paul Zakariya, secretary general of the Zimbabwe Farmers Union. “The marketing season is still underway and we expect more tobacco to come through. We may not necessarily reach the desired target, but we will not totally be out of range .

Others were less optimistic. Tobacco Farmers Union Trust Vice President Edward Dune said it was highly unlikely that the 240 million kg target would be reached in the wake of the drought.

“Deliveries should definitely be declining now that the marketing season is almost coming to an end. Firewood cutting and nursery preparations are the major farmer activities currently taking place on farms,” he said.

Tobacco Reporter