Tag: Zimbabwe

Call to end contract farming
The government of Zimbabwe should create a bank to provide financial support for tobacco growers and eliminate contract farming, according to a NewsDay story quoting the executive director of the Tobacco Industry Development Support Institute for Southern Africa (TIDSI), Jeffrey Takawira.
Although tobacco was one of the country’s biggest foreign currency earners and contributed at least 10 percent to its gross domestic product, most tobacco growers remained poor and faced financial challenges annually, Takawira said.
One of the growers’ major complaints was pricing, but they were concerned also about the lack of government policies in respect of support systems.
Takawira reportedly told NewsDay in emailed responses that there was a need for the government to establish a special bank to support tobacco farming and eliminate contract farming.
‘Failure by farmers to access cash at the banks erodes confidence in the financial services sector,’ Takawira said. ‘The governor of the Reserve Bank of Zimbabwe, John Mangudya, is on record revealing that there has been a marked improvement in foreign currency inflows into the country driven by agriculture and mining.
“So what boggles the mind is why then should farmers fail to access their cash. Where is the money? [As] the Tobacco Industry Development Support Institute for Southern Africa, we advance the idea of a tobacco bank.’
The Parliamentary Portfolio Committee on Agriculture is said to have conducted a fact-finding tour of the challenges facing the tobacco auction floors, but it has not yet reported in full.
September 7, 2017
Zimbabwe prices flat
The average price paid to Zimbabwe’s growers this season for their flue-cured tobacco, at US$2.96 per kg, is the same as was paid last season, according to a Zimbabwe Herald story.
Growers this season were paid US$557.1 million for 188.0 million kg of tobacco, while last season they were paid US$595.9 million for 202.2 million kg.
The Herald story seemed to suggest that the leaf tobacco sales season was still in progress, describing how tobacco farmers had ‘so far grossed…’. It said also that flue-cured tobacco production was ‘likely to miss its projected target of 205 million kg’.
An earlier story had it that a clean-up sale was to be held on August 11. But a New Zimbabwe story in the middle of August had it that sales had totaled 185.6 million kg; so clearly 2.4 million kg of sales had taken place between the New Zimbabwe and the Herald reports.
The lower crop this season came about even though the number of new growers was said to have increased by 103 percent, seed sales were said to have gone up by 331 percent and, according to the Zimbabwe Farmers’ Union, the area planted to tobacco had been increased.
September 5, 2017
Zimbabwe’s sales close
Zimbabwe’s flue-cured-tobacco sales-season has ended with grower prices on about US$2.97 per kg, according to a story in The New Zimbabwe.
The average price was up by about US$0.03 per kg, or one percent, on that of both 2015 and 2016, US$2.94 per kg.
But it was down significantly on the 2008 average price of US$3.24 per kg.
Volume sales this season, at 185.6 million kg, were said to be down by 7.3 percent on those of the previous season, due to unhelpful weather.
The target for this season had been 215 million kg.
The Tobacco Industry and Marketing Board (TIMB) said growers had been paid $551 million for their tobacco.
In February, the Zimbabwe Farmers’ Union said it expected flue-cured tobacco prices to be ‘favorable’ this year.
The quality of the crop was said to be excellent and so grower prices, which buyers say are based on quality, should have been excellent also.
At that time, growers believed that prices ranging between US$4.00 and US$5.00 per kg would be favorable.
Such prices, they said, would allow them to break even and to continue producing flue-cured tobacco next season.
August 17, 2017
Leaf price up 3¢ per kg
The average grower price paid for Zimbabwe’s flue-cured tobacco is so far running at US$0.03 per kg ahead of that paid during the previous season.
Figures issued by the Tobacco Industry and Marketing Board (TIMB) show that, so far this season, growers have sold 182.3 million kg of flue-cured tobacco for US$540.9 million, according to a story in the Zimbabwe Chronicle relayed by the TMA.
At the same stage of the previous season, growers had sold 196.6 million kg for US$578.5 million.
Zimbabwe’s sales season is drawing to a close with the expectation that 206 million kg of flue-cured will have been sold by the time it ends.
The country’s tobacco growers sold 201 million kg in 2016.
Early last month, the TIMB reduced the number of selling days to two – on Tuesdays and Thursdays – and later in the month it reduced them to once a week, on Wednesdays.
In a statement towards the end of July, the TIMB board said final clean-up sales would be held on August 11.
August 9, 2017
Healthy use of sin taxes
Zimbabwe’s Health Ministry wants 80 percent of ‘sin’ taxes channelled towards the prevention and control of cancer and other non-communicable diseases, according to a story by Grace Kaerasora for Zimbabwe Situation, quoting The Sunday Mail.
“Sin taxes are suggested as a source for financing health, and this is elaborated in our Health Financing Policy which was launched recently,” the Secretary for Health and Child Care Brigadier-General (retired) Dr. Gerald Gwinji was quoted as saying.
“This just provides government with an option to finance health, but will need to be approved on a tax-by-tax basis.
“As we speak, some taxes are being levied on tobacco, but these go towards general state revenue and are not specifically earmarked for health.
“The rationale behind sin taxes is that they raise funds and also stimulate changes in consumer behaviour, hopefully positive, resulting in reduced exposure to the product and its unwanted effects.”
The ministry’s Zimbabwe Cancer Control Strategy reads, in part: ‘The objective is to mobilise resources for cancer prevention and control. The target is for 80 percent of sin taxes to be channelled to the ministry by 2018. It will advocate enabling legislation, promotion of sin taxes and an environment that promotes tobacco cessation. This will reduce the economic and social acceptability of tobacco use in line with the World Health Organization-recommended strategies.’
The Cancer Association of Zimbabwe’s information, research and evaluation officer, Lovemore Makurirofa, said the Strategy stressed the importance of cancer prevention as a long-term strategy.
“Tobacco does not only cause lung cancer, but also contributes to other forms of cancer such as cervical cancer,” said Makurirofa.
“Tobacco use among youths is now prevalent. In 10 years’ time, there will likely be an increase in cancer cases if these strategies are not implemented to reduce cancer prevalence in the near future.”
August 7, 2017
Price up US$0.02 per kg
The average price for flue-cured tobacco in Zimbabwe is running at US$0.02 per kg ahead of what it was in 2016.
According to a story in The Herald today, growers had so far sold 180 million kg of flue-cured for $532 million per kg, at an average price of US$2.95 per kg.
By the same stage of last year’s sales season, they had sold 193 million kg for $566 million, at an average price of US$2.93 per kg.
Of this year’s sales, 149 million kg have been sold under the contract system for US$444 million, at an average price of US$2.98 per kg, while 31 million kg has been sold at auction for US$88 million, for an average price of US$2.84 per kg.
Although the industry is expecting to have sold about 206 million kg by the end of this season, up from 201 million kg in 2016, flue-cured sales are now being conducted only once a week.
Early this month, the Tobacco Industry and Marketing Board (TIMB) reduced the number of selling days to two – on Tuesdays and Thursdays – and now, sales will be conducted on Wednesdays only.
In a statement on Tuesday, the TIMB board said final clean-up sales would be held on August 11.
July 28, 2017
Zimbabwe prices stable
The average grower price paid so far this season for Zimbabwe’s flue-cured tobacco, at US$2.93 per kg, is the same as it was at the corresponding stage of the previous sales season, according to a story in The Herald relayed by the TMA.
The latest figures from the Tobacco Industry and Marketing Board (TIMB) indicate that growers have sold 166.8 million kg of flue-cured tobacco for US$489.3 million since the 2017 marketing season started in March.
During the corresponding period of last year, growers sold 166.9 million kg of flue-cured tobacco for US$489.4 million.
There is if nothing else a consistency about pricing. The average grower prices for flue-cured tobacco in 2015 and 2016 were about the same, at US$2.94 per kg.
Meanwhile, the TIMB has reported that 10,000 new tobacco growers have registered as part of preparations for the 2017-18 tobacco season.
It reported, too, that seed sales had increased by 93 percent year-on-year.
June 29, 2017
Farmers flock to tobacco
More than 10,000 new tobacco growers have registered with the Tobacco Industry and Marketing Board (TIMB) as part of preparations for the 2017-18 tobacco season, according to a story in The Herald.
Figures from TIMB indicate that of the 47,299 farmers have registered to grow tobacco during the 2017-18 season, 10,789 are new growers.
As of June 21, the communal sector had accounted for the highest number of the new growers. Six thousand and ninety communal farmers had registered to grow the crop for the first time.
Meanwhile, the TIMB said that seed sales had increased by 93 percent year-on-year. So far, tobacco farmers had bought seed equivalent to 84,308 ha whereas, by the same stage of last year’s preparations, they had bought seed equivalent to 43,473 ha.
The Herald story said that tobacco production had been on the increase ‘for the past years because of an organized marketing system, higher prices and better payments modalities’.
But part of this seems at odds with previous official figures. According to these figures, average flue-cured tobacco prices in 2015 and 2016 were about the same, at US$2.94 per kg, but back in 2008, the average price was US$3.24 per kg.
June 27, 2017
Research under-appreciated
Dahlia Garwe
Zimbabwe’s government is failing to fund the country’s Tobacco Research Board (TRB) despite its being a key institution in the effort to turn around the fortunes of the country’s economy, according to a story in The News Day.
TRB general manager Dahlia Garwe last week told the Parliamentary Portfolio Committee on Agriculture, which was on tour, that 75 percent of the capital used to run the research institute came from their own commercial activities, mostly from seed production at Kutsaga.
“As a parastatal, we are supposed to get funding from the government, but we have not received anything and TRB has been self-supporting,” Garwe said.
“Government collects an 0.078 percent tobacco levy and it is shared by the Tobacco Industry and Marketing Board (TIMB) and TRB, as well as other interested bodies, which contributes to about 30 percent to 35 percent of our revenue, while the 65 percent to 75 percent shortfall is borne by ourselves.”
Despite this lack of government support, the TRB had managed to produce tobacco seed varieties for the local and export market, and Kutsaga was said to be a very reputable seed research institute internationally.
Garwe said the TRB exported annually one and a half tons of Burley seed and 100 kg of flue-cured seed.
And the TRB currently has about 1,200 ha of seedlings that have been booked by farmers for planting in September. The seedlings are sold for $398 per ha.
The TRB management said it was facing challenges over raw materials that had to be ordered from outside Zimbabwe because, at times, it took six months for them to be delivered.
And it was facing problems because it needed to replace the equipment used in its laboratories. Some of this equipment had been used since the 1950s and when it broke down, it was difficult to get replacements because developed countries were now using modern equipment.
Garwe said other challenges included those associated with land, as well as those associated with illegal settlers, some of whom had invaded TRB space and were vandalizing fences and materials such as plastics used for growing tobacco seeds.
June 26, 2017
Grower prices up, down
Inspecting tobacco in Zimbabwe
Grower prices for Zimbabwe’s flue-cured tobacco are currently running behind those of last year, according to a Bernama News story relayed by the TMA
The latest data from Zimbabwe’s Tobacco Industry and Marketing Board (TIMB) indicates that, since the 2017 selling season began on March 15, tobacco growers have sold 161 million kg of leaf for US$470 million at an average price of US$2.92 per kg.
This compares with the approximately 157 million kg that was sold for US$461 million at an average price of US$2.94 per kg during the comparable period of last year.
The TIMB public relations and communications manager Isheunesu Moyo said deliveries this year had now declined because the peak-season period was over. The TIMB would shortly announce the closing date for regular sales and a date for mop up sales.
In February, the Zimbabwe Farmers’ Union said it expected flue-cured tobacco prices to be ‘favorable’ this year.
The quality of the crop was said to be excellent and so grower prices, which were said by buyers to be based on quality, should be excellent also.
At that time, growers believed that prices ranging between $4.00 and $5.00 per kg would be favorable.
Such prices, they said, would allow them to break even and to continue producing flue-cured tobacco next season.
In 2015 and 2016, the average price paid to Zimbabwe’s flue-cured tobacco growers was about $2.93 per kg.
The Lilongwe tobacco auction
Meanwhile, in Malawi, good quality leaf has attracted better prices than those of last year.
Since the start of sales on April 10, according to a story in the Maravi Post, relayed by the TMA, growers had sold 65.1 million kg of leaf (Burley and flue-cured) for US$125 million, seven percent up in respect of the volume sold during the corresponding period of last year and 38 percent up in respect of the value of those sales.
The Tobacco Control Commission (TCC) data indicated that the current average price of leaf stands at US$1.91 per kg, up from US$1.47 per kg during the same period of 2016.
Burley tobacco sales earned US$84.4 million from a volume of 50.1 million kg sold at an average price of $1.68 per kg, while flue-cured tobacco was said to have generated US$36 million, presumably at an average price of US$2.40 per kg.
The TCC’s acting CEO attributed the increase in earnings to the quality of the leaf.
June 23, 2017