• April 16, 2024

Zimbabwe to Wrap up Auction Sales

 Zimbabwe to Wrap up Auction Sales
Photo: Taco Tuinstra

Zimbabwe expects to wrap up its tobacco auction season July 20 with slightly better prices than last year, reports Xinhua News Agency, citing the Tobacco Industry and Marketing Board (TIMB).

A flue-cured auction mop-up sale will be conducted on Aug. 17, 2022, and depending on the volume of deliveries, the clean-up sale may be continued for more than one day until all delivered tobacco is sold.

The TIMB added that because of significant volumes that are still being received, contract sales will continue until further notice.

Zimbabwe’s 2022 tobacco auction selling season started March 30, 2022.

Tobacco prices have been slightly firmer this year, due to better leaf quality despite the difficult weather conditions experienced during the season.

The opening price this year was $4.60 per kg, compared with $4.30 last year.

Over the course of the selling season, prices remained firm, averaging above $3 per kg compared to an average of $2.80 per kg last year.

As of July 12, farmers had sold 179.4 million kg of golden leaf at an average price of $3.04 per kg.

The bulk of Zimbabwe’s tobacco leaf is sold through contract floors, as only 5 percent of farmers are able to self-finance tobacco leaf production.

Tobacco is Zimbabwe’s second foreign currency earner after gold, with China and South Africa being the major buyers of the country’s golden leaf.