• May 28, 2024

Seeking break-even prices

breaking even photo
Photo by Graham C99

The Zimbabwe Farmers’ Union has said it expects flue-cured tobacco prices to be ‘favorable’ this year, according to a story in The Chronicle, Bulawayo.

The quality of the crop is said to be excellent and so grower prices, which are said by buyers to be based on quality, should be excellent also.

Growers believe that prices ranging between $4.00 and $5.00 per kg would be favorable.

Such prices would allow them to break even and to continue producing flue-cured tobacco next season.

In 2015 and 2016, the average price paid to Zimbabwe’s flue-cured tobacco growers was about $2.93 per kg.

Growers are due to start delivering their flue-cured tobacco to the auction floors on March 6, ahead of the opening of the selling season on March 15.

Tobacco Industry and Marketing Board (TIMB) spokesperson Isheunesu Moyo was quoted as saying that the board had been told by growers that the quality of this year’s crop was excellent.