Tobacco exports surge 18%

TAFADZWA CHINYANGANYA

Zimbabwe’s tobacco export earnings has surged 18.8% to US$1.002 bn as increased shipments to international markets offset declining average prices, Business Times can report.

Data from the Tobacco Industry and Marketing Board (TIMB) shows that export volumes rose 23.1% to 189.9m kilogrammes, from 154.2 m kilogrammes in the corresponding period last year. Earnings increased from US$844.01m.

The growth in receipts, however, lagged the increase in volumes, with the average export price falling 3.4% to US$5.28 per kilogramme from US$5.47 a year earlier, highlighting the growing importance of value addition as Zimbabwe seeks to extract greater returns from its tobacco crop.

The Far East remained the country’s largest export market, absorbing 84.3m kilogrammes worth US$577.2m. Shipments to the region increased 30%, while earnings rose 31%, accounting for more than half of total export receipts.

Africa was the second-largest destination, taking 42.3m kilogrammes valued at US$169.3m. Volumes surged 46.9%, but earnings grew by a slower 24.6%, as the average price fell to US$4 per kilogramme.

Exports to the Americas recorded the fastest volume growth, climbing 61.4% to 8.6m kilogrammes, while earnings rose 53.3% to US$31.7m.

Europe, excluding the European Union, imported 12.4m kilogrammes worth US$62.1m, representing increases of 38.3% in volume and 38.5% in value.

The Middle East market remained relatively stable, absorbing 22.2m kilogrammes valued at US$69.3m.

The European Union was the main market to register a significant contraction, with export volumes falling 15.5% to 19.8m kilogrammes and earnings declining 31.5% to US$93.1m. The average price in the market dropped to US$4.68 per kilogramme.

The latest figures extend the strong export performance recorded earlier in the year. In August, TIMB reported that shipments had reached 141.6m kilogrammes worth US$806.6m, compared with 104.7m kilogrammes valued at US$574.8m during the same period in 2025.

TIMB chief executive Emmanuel Matsvaire has said Zimbabwe could generate more than US$1.5bn in annual tobacco earnings if it deepens value addition and beneficiation, shifting the sector beyond the export of largely unprocessed leaf.

The push to increase foreign currency receipts comes against a weaker domestic pricing backdrop, with farmers earning less per kilogramme despite maintaining high production volumes.

Farmers have sold 358.5m kilogrammes through the auction and contract marketing systems this season, slightly above the 354.2m kilogrammes recorded during the corresponding period last year.

However, the value of sales fell 24% to US$893.03m from US$1.18 bn, as the average price declined to US$2.49 per kilogramme from US$3.32.

The contrasting trends in export earnings and domestic sales underline the distinction between growing shipment volumes and improving returns. While Zimbabwe is exporting more tobacco and earning additional foreign currency, falling prices at the farm gate and in some overseas markets threaten the gains from higher output.

Government is targeting production of 400m kilogrammes in the 2026/27 season, rising to 500m kilogrammes by 2030.

Under the Tobacco Value Chain Transformation Plan, the country aims to process at least 100m kilogrammes locally by 2030, increasing the share of value-added tobacco products in export receipts and reducing reliance on unprocessed leaf exports.

The strategy also seeks to ensure that at least half of tobacco production is financed locally, strengthen traceability and sustainability, and encourage farmers to diversify into complementary crops to reduce their exposure to tobacco-related risks.

Smallholder farmers remain central to the industry, accounting for about 85% of growers, while contract farming finances more than 80% of national tobacco production.