STAFF WRITER
Tobacco farmers earned close to US$275m in the first 26 days of this year on the back of firm prices.
The amount of money received from tobacco exports in January ranges from US$60 million to US$80 million, but given the current data and the sharp decline in commodity prices, golden leaf may surpass this amount.
“As of Friday last week, Zimbabwe has exported 37.77m kilogrammes at US$7.27/kg thereby earning US$274.71m against 15.42m kg sold at US$5.24/kg earning US$80.86m in the process,” the Tobacco Industry and Marketing Board (TIMB) said in its latest sector bulletin.
The increase in earnings comes following subdued performance from most African countries due to droughts, resulting in a rise in demand for the golden leaf.
Given that Zimbabwe has produced over 296m kg, it means that the country is now a force to reckon with.
The Southern African nation is now the top producer in Africa and the fourth in the world.
The golden leaf which struggled to surpass the US$1bn in the past few years has earned more than US$1.2bn in 2023 and the trend is likely to continue given the current earnings.
Zimbabwe exported a huge chunk of tobacco to Asian countries followed by Africa.
In terms of firm prices, the Far East tops the charts followed by America.
Farmers’ organisations expect tobacco prices to be firmer due to high demand.
“Extreme weather phenomenons like El Nino are not good for many crops but when farmers get it right, the prices are always firm due to the high demand of the crop.
“If we manage to have a decent crop this year, the prices are expected to be firm,” Zimbabwe Commercial Farmers Union president Dr Shadreck Makombe said.
Despite the El Nino phenomenon, the country’s tobacco production is expected to reach 285m kg in 2024 following improved rains and as farmers extended planting.
“It is not yet certain where exactly we will be at the end of the season but preliminary indications from the regions suggest that we are likely to hit above 285m kg.
“The rains have renewed hope for both farmers and all the stakeholders in the tobacco sector as farmers increased hectarage when the rains resumed,” Tobacco Industry Marketing Board (TIMB) Chairman Patrick Devenish told Business Times.
He said the late onset of the rains has caused the season to be delayed by almost a month for the dryland crop.
Tobacco is one of the biggest export earners in Zimbabwe, which aims to increase production to 300m kg by 2025.
Tobacco production nosedived in 2000 when the government seized land from many white farmers in 2000.
The sector contributes over US$1bn to export earnings every year.
Farmers’ organisations expect tobacco prices to be firmer due to high demand.
The total hectarage decreased 22% to above 84 000 hectares in 2024 from 108 000 the previous season.
Also, farmers’ figures dropped 22% to around 112 000 in 2024 from 144 000 the previous season.
