Zimbabwe’s leaf tobacco export earnings soar

Zimbabwe has earned US$224.0 million from the export of 35.2 million kg of semi-processed tobacco this year, according to a story in The Herald quoting figures from the Tobacco Industry and Marketing Board.

This season’s figures are said to be increased from the US$58.6 million kg earned from the export of 16.4 million kg during the same period of last year.

Given that these figures are correct, it means that the average export price has gone from US$3.57 per kg at the start of last year to US$6.36 per kg at the beginning of this year.

Although the processing and export of leaf tobacco take time, which makes it difficult directly to link farm prices with export prices, it would seem that export prices have been increasing rapidly at the same time as grower prices have been plummeting.

Industry observers will no doubt be keeping their eyes on export volumes. The explanation given in Zimbabwe for low grower prices has had to do with quality problems, something that should be reflected in lowered processing yields and, therefore, lowered export volumes.