Tobacco grosses $680 mln on day 78, average price down 1.1pc to 2.92c/kg

Livingstone Marufu

HARARE – Tobacco has grossed $679,5 million after farmers delivered over 232 million kilogrammes on day 78 of the 2018 tobacco marketing season. This is a gain of more than $166 million on revenues realised during the same period a year ago.

During the same period in 2017, farmers earned $513,8 million after delivering 174 million kg.

The remarkable growth in deliveries beat last marketing season’s 190 million kgs and this has been achieved despite a serious mid-season drought that at one point threatened to wipe out the crop.

The current tobacco is set to surpass the highest tobacco output by Zimbabwe in the new millennium of 237 million kg achieved in 2000. However, the output is still way below the 325 million kg that was recorded in 1965.

The increase in output largely comes on the back of growth in tobacco growers which were recorded at 144 905 this year from 98 705 in the past year. The average price however decreased by 1,1 percent to $2,92/kg from $2,95 last year.

As far as tobacco export earnings are concerned, Zimbabwe has so far earned $184, 3 million from 45,2 million kg of tobacco exported mainly to Indonesia and China since the beginning of 2018.

Tobacco has been exported to 49 countries so far. China accounted for over 7,8 million kg valued at $51,2 million while Indonesia bought 5,8 million kg valued at $26,8 million,” reads part of the TIMB’s latest weekly bulletin.

With an estimated 350 million smokers, China has been spending over $200 million yearly on Zimbabwean tobacco, regarded among the best in the world.

South Africa has so far bought 7,5 million kg worth $22,2 million (average price of $2,93/kg).

Belgium has this year bought 4,7 million kg valued at $15 million at an average price of $3,17 per kg.

Russia , which has spent $7,9 million on 2,2 million kgs, while Sudan stands at 1,4 million worth $6,2 million.

Other buyers are from Bulgaria, Vietnam, Hong Kong, France, Netherlands, Germany, Nigeria, Taiwan, Spain and Tanzania. However, the tobacco export proceeds are $71 million behind last year’s exports for the same period.

During the same period last year tobacco exports generated $231,7 million from a total of 49,7 million kg.

Tobacco is presently being exported to these countries at an average price of $4,08/kg compared to $4,60 (during) the same period last year.

Tobacco is Zimbabwe’s biggest foreign currency earners followed by gold.

Last year tobacco exports topped $900 million, which was a marginal decrease from the $933 million the previous season.

Across the country, the area put under tobacco has slightly decreased from 110 518 hectares last year to 104 397ha.