Tag: market

  • Opinion: Zimbabwe’s Tobacco Chain Needs to Come Together

    Opinion: Zimbabwe’s Tobacco Chain Needs to Come Together

    Zimbabwe’s tobacco marketing 2025 season opened last week with the first bale selling for $4.65 per kg. That price was predictably down from last year’s $4.92 as the El Nino drought created a shortage in the tobacco market. Last year’s output was 235 million kilograms, down from 2023’s record 296 million kg. For 2025, projections are in the 280 million kg region, however, more plantings and favorable weather keep the National Development Strategy’s ultimate 300 million kg goal a possibility.

    While growers are doing their part in the system, Obert Chifamba wrote in his opinion piece for The Herald that more needs to be done as a nation to make the cash crop profitable for the people doing the work.   

    “Just two seasons ago [we were] close to the target of 300 million kg,” Chifamba wrote, “which means production-wise, we have achieved our intentions, hence the need to identify and address the issues now standing between the country and its target.

    “Delays in disbursing the $60 million tobacco revolving fund meant to localize the crop’s funding and support growers have not made the situation any better, with the Reserve Bank of Zimbabwe said to be working on the modalities of disbursing it. Local funding should take care of 70% of the cost of production. This is also one of the strategies the government is pushing to effectively implement to ensure the country stops relying on foreign capital for the crop, which will see the funders taking between 80 and 90% of the money generated from tobacco out of the country leaving producers with very little.”

    Chifamba also points out that 95% of the tobacco produced gets exported out of the country raw, allowing countries that import and process it to reap the majority of the profits, and that local growers are often taken advantage of by foreign sponsors with “notorious price ceilings” and incomplete purchase contracts. 

    “It is critical for the tobacco industry to do some self-introspection and see where the wheels are always coming off,” Chifamba wrote. “Maybe it will take the intervention of the government or some independent observer to pinpoint where the tobacco juggernaut needs revitalization to function more fluidly and profitably for all parties involved.”

  • Zimbabwe’s Tobacco Market Opens

    Zimbabwe’s Tobacco Market Opens

    Zimbabwe’s 2025 tobacco marketing season opened this week (March 5) with stakeholders upbeat about increased output due to favorable weather, contrasting to last year’s El Nino-induced drought.

    “We are expecting a bigger crop, much bigger than last year, over 280 million kg, and I think it will sell well,” said Patrick Devenish, chairman of the industry regulator Tobacco Industry and Marketing Board.

    Last year, Zimbabwe produced more than 240 million kg worth $1.4 billion in export earnings. China is the largest importer of Zimbabwe’s tobacco and is expected to have high demand for its top-quality leaf this year.