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Tag: tobacco auction

  • Zimbabwe Sees Tobacco Volumes Rise, While Prices Fall

    Zimbabwe Sees Tobacco Volumes Rise, While Prices Fall

    Zimbabwe’s tobacco deliveries to auction and contract floors have surged 83% year on year, earning farmers nearly $200 million since the marketing season opened on March 4, according to the Tobacco Industry and Marketing Board. A total of 67.2 million kg of tobacco valued at $197.7 million has been sold so far, up from 38.8 million kg worth $133 million over the same period last year.

    Despite the higher volumes, prices remain subdued, with the average price at $2.79/kg compared to $3.44/kg previously. Most of the crop — about 95% — has been sold through contract floors, with only 3.8 million kilograms sold at auction by self-financed farmers. The highest prices recorded this season were $5.75/kg on contract floors and $4.92/kg at auction, both below last year’s $6.30/kg peak.

    The Zimbabwe Tobacco Growers Association said farmers are receiving payments on time as required under Statutory Instrument 77 of 2022, though high production costs and multiple levies continue to squeeze earnings.

  • Tech Hopes to Get Zimbabwean Tobacco Farmers Paid in Minutes

    Tech Hopes to Get Zimbabwean Tobacco Farmers Paid in Minutes

    Tobacco farmers in Zimbabwe are now expected to receive payment within 30 minutes of concluding sales as the 2026 marketing season opens March 4, a major technological advancement for the sector. Traditionally, growers faced delays of up to two days or more under Statutory Instrument 77 of 2022, but a fully integrated digital system linking the Tobacco Industry and Marketing Board (TIMB) platform to auction floors allows real-time tracking of every bale, instant dispute resolution, and rapid electronic payment confirmation. Deputy Minister Vangelis Haritatos said the system sets a new benchmark for agricultural efficiency, encouraging more farmers to participate, including in dryer regions of Matabeleland. Operators at the Tobacco Sales Floor (TSF), Premier Tobacco Auction Floor (PTAF), and Ethical Sales Floor (ESF) confirmed readiness, with upgraded logistics, bank integrations, and biometric systems to curb side marketing and enhance traceability, while TIMB strengthened online monitoring to ensure transparency and smooth operations throughout the season.

  • Zimbabwe’s Tobacco Season Ready to Open

    Zimbabwe’s Tobacco Season Ready to Open

    Zimbabwe’s tobacco auction floors are set to open March 4, with contract floors following a day later, as authorities express confidence in their readiness for the marketing season. Deputy Minister Vangelis Haritatos said inspections last week showed strong preparation across the three auction floors, which are expected to handle increased volumes following a 15% rise in planted area to about 164,500 hectares. The government is targeting 500 million kg of output by 2030 as part of plans to build a $7 billion industry, with officials projecting around 400 million kilograms this season. Floor operators, including Premier Tobacco Auction Floor and Ethical Sales Floor, said systems are in place to ensure smooth operations and prompt payments, with some farmers expected to receive funds within an hour, while the Tobacco Industry and Marketing Board highlighted new biometric measures to curb side marketing.

  • Zimbabwe Bans Non-Contract Tobacco 

    Zimbabwe Bans Non-Contract Tobacco 

    With Zimbabwe expecting another banner tobacco crop, the nation’s Tobacco Industry and Marketing Board (TIMB) continues to work toward regulating the market and protecting farmers from unfair prices and practices. TIMB’s latest directive, made just days ahead of the opening of the marketing season, says that all free-funded tobacco must be sold through the auction system this year. 

    Tobacco production is grown under two arrangements in Zimbabwe, namely contract and self-financing. Previously, farmers and merchants were allowed to buy tobacco from self-financing farmers outside the auction system on arranged terms, which distorted auction prices, which in turn distorted prices for future contract tobacco.

    “We challenge all the 55 licensed merchants this season that there is no room to buy free tobacco outside auction floors,” said TIMB chief executive officer Emmanuel Matsvaire, adding they will have a zero-tolerance policy for breaches.

    Earlier this year TIMB introduced a biometric registration system, underscoring the regulatory board’s commitment to combating illicit practices, among them side-marketing.

    Last year, Zimbabwe’s tobacco export surged to 243.4 million kilograms, valued at $1.31 billion, an increase from 2023’s $1.23 billion. More plantings and favorable weather suggest the 2025 season will be even better.

  • Indian Growers Hopeful for Better Prices

    Indian Growers Hopeful for Better Prices

    Photo: Taco Tuinstra

    As tobacco auctions began in Prakasam and Nellore, Indian tobacco farmers are hoping to see better than average prices for their leaf during the 2021–2022 season, reports The Hindu.

    Farmers had a hard time marketing leaf the past two years due to lower demand caused by the economic crisis and uncertainties due to Covid-19.

    “We hope to make a kill[ing] this year, thanks to the lifting of pandemic restrictions. There are no logistic problems that were witnessed in the last two years when Covid cases were at peak,” said a group of farmers waiting for buyers at the Ongole I auction platform. Exporters have not entered the market yet due to the lack of confirmed orders from their counterparts overseas.

    “The exporters are expected to enter the market during next week when the bales put for auction will be stepped up from the present 200 to 300 in each auction platform to 500 to 600,” SLS Regional Manager D. Venugopal assured the farmers, who were worried over nonparticipation in the auctions by all the registered traders.

  • Zimbabwe: New Tobacco Floor

    Zimbabwe: New Tobacco Floor

    Photo: Taco Tuinstra

    Ethical Leaf Tobacco has opened an auction floor in Mvurwi, according to allAfrica. Farmers in Mvurwi used to travel to Bindura for auction.

    Patience Mushore-Chizodza, public relations and marketing manager for Ethical Leaf Tobacco, said the company expects to buy 5 million kg of tobacco, up from 4.6 million kg last year.

    “We have adopted a paradigm shift and embraced social marketing through various strategies to empower smallholder tobacco farmers,” Mushore-Chizodza said. “This year, the company has embarked on a plough back initiative in all our four tobacco farming regions by recognizing the best farmers who have shown vigilance and best farming practices.”

    Wonder Matizamhuka, Tobacco Industry and Marketing Board technical officer for Mvurwi, warned farmers against side marketing as the start of the season gets closer. “As tobacco floors open on March 31, sell your crop to the company that contracted you,” he said. “Side marketing is a crime, and this year, we will be arresting people.

    “Don’t look for middlemen at tobacco floors; a good crop sells itself. Unscrupulous people moving in farms buying your crop are ripping you off. Go with your tobacco to the floors.”

    Zimbabwe decentralized tobacco marketing to minimize movements in the wake of the coronavirus pandemic.