Zimbabwean Selling Season to Start in April

Zimbabwe’s tobacco marketing season kicks off April 7, reports Daily News, citing the Tobacco Industry Marketing Board (TIMB). The auction floors will officially open on that day, but contract tobacco sales will begin April 8.

Normally, the tobacco marketing season opens in February, but the coronavirus crisis could have affected the dates for this year. 

Three auction floors, Boka Tobacco Floors, Premier Tobacco Auction Floors and Tobacco Sales Floor, have been licensed for 2021. The three firms would all operate from Harare only, and there will be no decentralization of auction sales. As was the case last year, some of the contracting companies would operate out-of-Harare sales points.  

Tobacco growers are anticipating a bumper harvest after good rains and adequate supplies of inputs. The potential national tobacco output is currently being assessed by Agritex and TIMB with the results set to be released by the parent Ministry of Lands, Agriculture, Fisheries, Water and Rural Resettlement.  

According to the TIMB, 180.8 million kg valued at $452.3 million were delivered to the country’s contract and auction floors last year. Last year’s average price was $2.50 per kg. 

Zimbabwe exports its tobacco mostly to China and the European Union.

Following a policy change by the Reserve Bank of Zimbabwe, tobacco farmers are set to receive 60 percent of payment in foreign currency and the remainder in local currency. Last year, farmers were paid 50 percent of their proceeds in U.S. dollars with the other 50 percent being in Zimbabwe dollars. 

The tobacco Farmers Union of Zimbabwe has warned that the retention levels still fall short of growers’ production cost.