Tag: Zimbabwe Commercial Farmers Union

  • Zimbabwe Farmers Demand Premiums

    Zimbabwe Farmers Demand Premiums

    Photo: Taco Tuinstra

    Following a 30 percent increase in tobacco export earnings to $1.3 billion in 2023, Zimbabwean tobacco farmers are pushing for increased premiums, according to The Herald.

    In 2023, Zimbabwe exported tobacco products worth $1.3 billion, up from $998.1 million in 2022, according to the Zimbabwe National Statistics Agency (ZimStats). In volume, the increase was 20 percent for the same period.

    “The huge gap between what ends in the farmer’s pocket and what exporters take home is a big anomaly that needs to be addressed,” said George Seremwe, chairman of the Zimbabwe Tobacco Growers Association (ZTGA). “Participation of farmers in the value addition chain needs to be enhanced by making sure they take ownership of the crop all the way to the market.”

    Seremwe stated that there should be a premium price paid back to farmers after the value addition process as happened in the past. He also argued for a model that rewards farmers in terms of export earnings.

    “We used to have export retention schemes from the Reserve Bank of Zimbabwe. This needs to be revived so that the farmer gets more value from the crop,” the ZTGA chair said.

    “The grower is the weakest link in this matrix and needs protection from (the) government,” said Zimbabwe Progressive Tobacco Farmers Association (ZPTFA) president Mutasa Mutandwa.

    “The Tobacco Industry and Marketing Board needs to thoroughly monitor contractors as per the compliance administration framework in order to find out what inputs have been given to farmers versus the crop they are buying,” said Mutandwa.

    “Our crop is fetching high prices on the international market, as it is used as a blender, but the farmer is not benefiting. There is need for massive investment in tobacco processing plants to increase exports of high-priced manufactured products,” explained the ZPTFA president.

    The Tobacco Value Chain Transformation Plan aims to increase value addition from 2 percent to 30 percent by 2025 to reach a $5 billion tobacco industry.

    “The price at the floors can only be enhanced by improving the quality of the leaf as buyers prefer clean and clear styles,” said Shadreck Makombe, president of the Zimbabwe Commercial Farmers Union. “There is need to have more investment in processing to enhance value addition.”

  • Zimbabwean Farmers Anticipate High Prices

    Zimbabwean Farmers Anticipate High Prices

    Photo: Taco Tuinstra

    Tobacco farmers in Zimbabwe are expecting high marketing prices this year following a good growing season and improved curing methods, reports The Herald

    “Our assessment of the tobacco crop to date promises higher yields and improved quality. This view is shared by a number of contractors,” said Rodney Ambrose, CEO of the Zimbabwe Tobacco Association. “It is in this regard that we are anticipating average prices to be firmer this season.

    “There is also a level of increased demand for the crop, so this will help lift the average prices.”

    “Farmers are anticipating high prices as the quality of the crop in the field is very good,” said Shadreck Makombe, president of the Zimbabwe Commercial Farmers Union. “All that is left is for farmers to do proper curing. We encourage farmers not to be extravagant and [to] save their hard-earned money and be able to finance next season’s operations.”

    “The 85 percent foreign currency retention increase is surely going to put more money in farmers’ pockets,” said Makombe.

    According to Edward Dune, vice president of the Tobacco Farmers Union Trust, all farmers are looking forward to a rewarding season. “The playground has to be level in terms of pricing,” he said. “Let the price matrix reward on the basis of quality. No merchant should be a farmer’s favorite given that some are paying more for the same quality to avoid side marketing.”

    The Tobacco Farmers Union Trust is lobbying for viable prices to enhance sustainability, according to the organization’s president, Victor Mariranyika.