Zimbabwe has sold 201.05 million kg of tobacco worth US$614.27 million since the marketing season opened in March, reports The Star, citing statistics from the Tobacco Industry and Marketing Board.
While being close to matching last year’s output, the value of the crop sold so far this year has surpassed last year’s figure, reflecting firmer prices due to good quality leaf. During the same period in 2021, Zimbabwe’s tobacco growers sold 207.18 million kg for US$578.78 million.
Despite being grown under difficult conditions characterized by erratic rainfall, the seasonal price averaged above US$3 per kg compared to US$2.79 per kg last year.
Ninety-five percent of Zimbabwe’s tobacco crop is grown under the contract system. Only 5 percent of farmers self-finance their crop production, which they then sell through auction floors.
Zimbabwe’s tobacco auction season officially closed July 20, but contract sales are still ongoing.