Tag: Zimbabwe

Zimbabwe: Good Quality Leaf Expected

Photo: Taco Tuinstra
Zimbabwe is expecting good quality tobacco leaf this year despite an expected reduction in output. The quality should attract higher prices, according to xinhuanet.com.
The anticipated reduced volumes are likely to push demand and selling price up, according to Tobacco Industry and Marketing Board Chief Executive Meanwell Gudu.
Tobacco hectarage for the season declined by 11 percent, according to results of the first-round crop and livestock survey for 2021–2022.
“Due to anticipated reduced volumes in Zimbabwe this season, there will be more pressure on the demand side to take the crop, which should naturally increase prices upward. This is likely to be experienced in the medium to filler grades,” Gudu said. Top-quality grades for premium brands are likely to remain unchanged, he said. The current price for top-quality grades ranges from $3.50 to $5.40 per kg.
“The high-end market for this grade has reached its ceiling in price increase. The major market for these grades is in China, and there are no indications to change prices upward,” Gudu said.
“We expect top-quality grades. The irrigated crop is medium[-bodied] to heavy-bodied, predominantly lemon in color and reflecting a fair to good quality.
“The main dryland crop is medium-bodied in the commercial sector whilst being light[-bodied] to medium-bodied in the smallholder sector. The late dryland crop has poor stand due to prolonged dry spell, which was experienced post-planting time toward the end of December.”
“Brazil is likely to be 80 million kg short of their usual production level because of drought. This creates less competition for us,” Gudu said.
“Some kind of hoarding of tobacco is likely to happen that may influence prices to be better because of disruptions in logistics caused by Covid-19,” he added.
“Supply chains were disrupted from 2020 into 2021 due to shortage of vessels and closure of some shipping lines. Now that the world has lifted the Covid-19 restrictions and uncertainty in the possibilities of other waves, customers are likely going to grab this opportunity to stock up their tobacco, thereby increasing artificial demand,” Gudu said.
Zimbabwe sold 186.6 million kg of tobacco leaf valued at $515.9 million during the 2021 marketing season, up 16.8 percent in volume and 31 percent in value over 2020 sales.
March 11, 2022
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.
March 4, 2022
Zimbabwe Marketing Dates Announced

Photo: Taco Tuinstra
The Zimbabwe Tobacco Industry and Marketing Board (TIMB) has announced the opening dates for auction and contract floors for the 2022 season, according to ZBC News.
“The TIMB wishes to inform all stakeholders that the 2022 tobacco marketing season kicks off on the 30th of March 2022 for auction floors and Thursday, the 31st of March for contract floors,” said Chelisani Moyo, spokesperson for the TIMB.
“We registered 122,000 farmers for this season compared to 145,000 last season, mainly due to the fact that TIMB has come up with a framework to bring sanity in the industry to ensure that proper farmers are the ones who are registered,” he added.
The number of registered Class A buyers has increased to 33 from 28 in 2021.
Over the past two years, sales have been conducted under strict Covid-19 protocols, and the TIMB is currently conducting crop assessment with the parastatal set to issue the sales guidelines before the marketing season starts.
February 22, 2022
Voedsel To Set Up Leaf-Processing Plant

Photo: Taco Tuinstra
Voedsel Tobacco International will set up a $6 million leaf-processing plant in Rusape, Zimbabwe, this year, reports Bulls n Bears.
“We have purchased the material to set up a tobacco-processing plant for the value addition of tobacco,” said Voedsel’s commercial director, Tennyson Hwandi.
“This process involves beneficiating the tobacco from its state into a semi-finished product. It also means that there is going to be more earnings for the farmers as we grow the value chain. As an indigenous company, we are proud to have achieved this as this creates new jobs.”
Hwandi said the plant is expected to start operations this year.
Voedsel’s investment is in line with the government’s Tobacco Transformation Plan, which aims to grow the Zimbabwean tobacco industry to $5 billion by 2023 by increasing the level of value-added tobacco to 30 percent from the current 2 percent.
February 17, 2022
Zimbabwe Licenses Buyers for 2022 Season

Photo: Taco Tuinstra
Zimbabwe’s Tobacco Industry and Marketing Board (TIMB) has licensed 33 buyers and 31 contractors for the 2022 tobacco marketing season, reports The Herald.
TIMB statistics indicate that 122,769 growers have registered for the 2022 growing season compared with 145,625 last year.
According to Tobacco Association of Zimbabwe President George Seremwe, most farmers with an irrigated crop have finished reaping, and some have started grading their leaf.
“The dry land tobacco was planted a bit late, so most of the farmers are on their first reaping,” he added. “Most of the small-scale tobacco farmers grow dry land tobacco, which is still in the field.”
The Zimbabwe Tobacco Association expects good yield despite adverse weather during the growing season. “The crop has grown out well and clean in many areas and naturally in areas that received large amounts of rain,” said ZTA Chief Executive Rodney Ambrose.
Ambrose did, however, express concern over electricity supply. “Extensive load shedding coupled with faults has seen growers go days and weeks without power,” he said.
During the 2022 tobacco marketing season, growers will retain 75 percent of their earnings in hard currency, up from 60 percent last season.
February 17, 2022
Dahlia Garwe to Leave Tobacco Research Board

Photo: Taco Tuinstra
After eight years at the helm of Zimbabwe’s Tobacco Research Board (TRB), Dahlia Garwe is leaving the institution to pursue other interests.
Garwe joined the TRB in 1991 as a research officer in the analytical chemistry department. In 2003, she became a divisional coordinator, and in 2009, she was named assistant general manager of research and extension. In 2012, Garwe was appointed acting general manager, and in 2014, she became the TRB’s first female CEO.
In an interview with The Herald, Garwe reflected on the TRB’s achievements during her tenure. Despite the challenging economic environment, the institution continued to record surpluses thanks to several income-generating initiatives, such as the seed potato project.
During Garwe’s time at TRB, the institute’s scientists contributed significantly to international tobacco conferences and congresses, with quite a few of them assuming leadership roles in various international tobacco research bodies.
The TRB also released several new tobacco varieties, eight of which were released, including to other countries, such as Ethiopia, Rwanda and Tanzania.
Confronted with declining tobacco consumption, the TRB has also been exploring alternative crops, such as industrial hemp, in Zimbabwe.
Asked why she was leaving the TRB, Garwe cited Who Moved My Cheese by Spencer Johnson, a self-help book that encourages readers to adapt to change. According to Zimbabwe’s Public Corporate Governance Act, Garwe must retire within the next two years as her 10 years in office will be up.
“In the interim, I received a really exciting offer from a local agricultural player, which will allow me further growth,” Garwe told The Herald. “I decided to take it, and I am relishing the new challenge. I will miss TRB, but I am ready to move on.”
February 15, 2022
Decentralized Marketing Continues in Zimbabwe

Photo: Taco Tuinstra
The decentralized auctioning of tobacco is now a permanent feature of Zimbabwe’s tobacco marketing system, reports The Herald, citing the Tobacco Industry and Marketing Board (TIMB).
Previously, tobacco sales were conducted exclusively in the capital, Harare, causing farmers to incur transportation cost and forcing them to spend days away from their fields. The centralized auction system dates from the time that Zimbabwe’s tobacco industry was dominated by commercial plantations with a limited number of large-scale growers.
Following the land reform program of the early 2000s, Zimbabwean tobacco production is now characterized by small-scale production, with hundreds of thousands of participants each selling relatively small amounts of tobacco.
Decentralized sales started in 2021, with floors opening in Marondera, Rusape and Karoi Mashonaland West, among other locations.
TIMB CEO Meanwell Gudu said decentralization of sales would continue in 2022 because it brought convenience and reduced transport cost to farmers who sold their golden leaf at the nearest town.
“The decentralization is very positive because it is in line with government policy on devolution,” he said.
During the 2021-2022 summer cropping season, Zimbabwean farmers put just over 105,000 ha of land under tobacco, down from 106,494 ha last year.
According to the TIMB, more than 121,000 farmers had registered to grow tobacco during the 2021-2022 season by Dec. 31, a decrease from the 144,462 growers who had signed up during the same period the previous year.
February 4, 2022
Zimbabwe Leaf Earnings Up

Photo: Transcom Sharaf
Zimbabwe has earned more than $80 million from tobacco exports to date this season, up from a little over $17 million during the same period of the prior year, reports The Herald. The country has exported 15,777 tons so far compared with 573 tons in the comparable period of the previous selling season.
Industry representatives attribute the jump to the timing of shipments. According to the Tobacco Industry and Marketing Board (TIMB), companies with customers in the Far East have moved their tobacco to ports in South Africa earlier than normal to secure space on vessels.
“During the same period last year, due to the Covid[-19] pandemic, efficient shipment of goods was affected as some shipping lines canceled their vessels,” said TIMB spokesperson Chelesani Moyo.
The Far East was the top destination for Zimbabwean tobacco, with local companies exporting 190,153 tons worth $67.5 million to date.
The Middle East imported 2,614 tons worth $6,49 million while the European Union bought 1,543 tons worth $3.71 million. African countries imported 927 tons worth $2.06 million, and the Americas bought 14 tons valued at $1.73 million, according to the TIMB.
More than 140,000 farmers now engage in tobacco production while close to 1 million people are directly dependent on the golden leaf.
Tobacco generates 30 percent of Zimbabwe’s foreign currency earnings, bringing in more than $600 million annually.
To learn more about the impact of Covid-19 on global tobacco shipments, see “Taking Freight,” in this month’s issue of Tobacco Reporter.
January 20, 2022
Fewer Tobacco Growers in Zimbabwe

Photo: Taco Tuinstra
The number of tobacco growers in Zimbabwe has declined by nearly one fifth, reports The Herald, citing the Tobacco Industry and Marketing Board (TIMB).
More than 120,000 people registered to grow tobacco for the current season, compared with 144,462 who registered during the same period last year.
The decline is attributed to the TIMB’s stricter grower vetting process and challenges facing the tobacco industry.
“Many farmers have tried and have fallen short, which is why we have less registered farmers,” said TIMB Public Affairs Officer Chelesani Moyo. “We place more pride in having fewer but legitimate tobacco growers whom we know will follow due diligence in all tobacco production processes and produce tobacco in quality ranges one to three by 2025.”
Tobacco Association Zimbabwe President George Seremwe blamed the decline in registrations on the fact that some farmers had incurred losses during the previous season.
“Too much cartels on one cake in the industry,” he said. “Surrogate contractors short changed farmers last season. We cannot have tobacco farmers not paid from last season up to now.”
Following complaints that some buyers were charging excessive premiums for inputs, manipulating prices and paying late, the TIMB has cracked down on contractors. Recently, the regulator also announced stiffer penalties for side marketing.
In related news, the government has given farmers who are still planting tobacco as a result of erratic rainfall at the start of the current farming season until Jan. 10 to destroy seedbeds.
Under normal circumstances, Zimbabwe requires tobacco farmers to destroy their seedbeds by Dec. 31 each year to prevent the spread of pests and diseases.
January 7, 2022
Stiffer Penalties for Side Marketing in Zimbabwe

Photo: Taco Tuinstra
The Tobacco Industry and Marketing Board (TIMB) of Zimbabwe plans to introduce stiffer penalties for “side marketing” of tobacco, reports Daily News. Side marketing is a form of contract default in which a farmer agrees to grow for one buyer but sells to another. When this happens, the contracting merchant not only loses his tobacco but also the agricultural inputs he provided to the farmer.
“TIMB has zero tolerance to side marketing,” said TIMB public relations officer Chelesani Moyo. “We are encouraging all stakeholders involved in the production of tobacco to stop the practice and make the tobacco farming business sustainable in Zimbabwe as we look ahead to the 2022 tobacco marketing season.”
At the same time, the TIMB has introduced measures to protect farmers from being shortchanged by contractors through underfunding and overcharging inputs.
The organization is currently analyzing the latest submissions from contractors who previously were not compliant.
“We have 37 licensed contractors, and nine out of the 37 are partially compliant because they have submitted partial regulatory information that we require,” said Moyo.
“We gave them up until Dec. 31, 2021, to ensure they are fully compliant. We are going to suspend those who are noncompliant, and farmers will be released and allowed to be contracted to other schemes.”
January 5, 2022