• May 23, 2024

Leaf prices up by 0.8 percent

 Leaf prices up by 0.8 percent

Zimbabwe’s flue-cured tobacco grower prices so far this season have averaged US$2.63 per kg, up 0.8 percent on the average of the previous year, US$2.61, according to a ZBC story.

But the average price might in fact be down by 30 percent because the story said also that 29 million kg of tobacco had been sold so far this year for US$53 million, which would suggest an average price of US$1.83 per kg.

Contract sales are said to have accounted for 23 million kg of the total and auction sales for six million kg.

In total 422,000 bales were laid with 393,000 of those being sold.

In February, the Zimbabwe Farmers’ Union said it expected flue-cured tobacco prices to be ‘favorable’ this year.

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

At that time, growers believed 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.