Zimbabwe Tobacco Production Debunks Myth of Land Reform Failure
November 11, 2015
Zimbabwe Herald
Zimbabwe’s economy may not be yet out of the woods, but reports that this country has emerged as the biggest producer of tobacco in Africa and is rated fifth in the world is no mean feat, but rather an achievement that sends a clear message that this economy is on the right track and is not a write off as brandished in some quarters.
Not only is the country a major producer in terms of quantity, but it is renowned for the high quality of the golden leaf that is sought after globally.
The recent findings by BDO Zimbabwe Chartered Accountants reflected the notion that over the past few years tobacco has proved to be Zimbabwe’s forte, consolidated by the entrance of thousands of small scale farmers via the land reform programme that saw thousands of farmers enter into mainstream agriculture.
The latest achievement also vindicates the land reform exercise, with the tobacco sector illustrating clearly that indigenous farmers can do it, even against all odds. Tobacco has been attractive to small growers due to generally high prices fetched and the advent of contract farming that has improved output.
The sector has been growing steadily over the past five years, with production rising to a peak of 216 million kilogrammes in 2014 before a slight dip to 198 million this year, because of drought and other effects of climate change. It exudes immense potential to perform better.
Production was a measly 58,5 million kg in 2010. The significant jump in production illustrates the growing interest in the sector which has driven its recovery, to emerge as the best on the continent. The golden leaf contributes 12 percent of Zimbabwe’s Gross Domestic Product.
Previously, a preserve of a few commercial farmers, the sector has witnessed the small scale growers defy odds such as poor rains, inadequate inputs, poor skills and the shortage of curing facilities to produce a great product that has broken records on the international market.
In fact, in the 2013-2014 season small scale producers accounted for 62 percent of production and indications are that this season may witness about 18 000 new entrants. The country needs to ride on these positives and strategically offer support to such viable spots or low-hanging fruits as tobacco to leverage the economy. So much more needs to be done for the crop to realise its full potential. The growers, particularly the small and relatively new ones, have had to overcome immense challenges which need to be attended to.
Curing and grading have proved a real hassle that needs Government and tobacco associations to move in and assist. The marketing itself has been fraught with scenes of violence and disharmony as growers reject low prices while some middlemen have cheated the inexperienced growers of their hard-earned money by offering poor prices.
On the other hand, contract farming has proved more lucrative and well-organised. Zimbabwe could benefit from an expanded programme in this sphere. Furthermore, poor rains show that rain-fed production may not yield much, but that dams and irrigation infrastructure need to be put in place urgently to bolster production.
This should cease to be a mere talking point, but we should actually see action being taken in this regard. Government is obviously unable to fund all the projects, but we need partners and financiers to help. The farmers themselves can also invest some of their profits into purchasing irrigation equipment to ensure they produce sustainably going forward.
On their part, small growers need to behave more responsibly and show great initiative, particularly in terms of growing woodlots to facilitate curing. Already forests have been left bare due to haphazard cutting down of trees.
Small scale tobacco growers run the show in Brazil, the second largest grower and Zimbabwe can glean from that country’s production systems to empower the local grower. Zimbabwe can achieve much on the tobacco front once all outstanding issues such as the input costs, labour costs, curing and support from associations are attended to.
Furthermore the country has immense potential to achieve much, riding on its global standing in terms of production output in agriculture, mining and other sectors of the economy.
Indeed the tobacco sector seems to be getting its mathematics right, given its achievements and we expect other sectors to follow suit so the economy can realise its full potential.
Zimbabwe Herald
Zimbabwe’s economy may not be yet out of the woods, but reports that this country has emerged as the biggest producer of tobacco in Africa and is rated fifth in the world is no mean feat, but rather an achievement that sends a clear message that this economy is on the right track and is not a write off as brandished in some quarters.
Not only is the country a major producer in terms of quantity, but it is renowned for the high quality of the golden leaf that is sought after globally.
The recent findings by BDO Zimbabwe Chartered Accountants reflected the notion that over the past few years tobacco has proved to be Zimbabwe’s forte, consolidated by the entrance of thousands of small scale farmers via the land reform programme that saw thousands of farmers enter into mainstream agriculture.
The latest achievement also vindicates the land reform exercise, with the tobacco sector illustrating clearly that indigenous farmers can do it, even against all odds. Tobacco has been attractive to small growers due to generally high prices fetched and the advent of contract farming that has improved output.
The sector has been growing steadily over the past five years, with production rising to a peak of 216 million kilogrammes in 2014 before a slight dip to 198 million this year, because of drought and other effects of climate change. It exudes immense potential to perform better.
Production was a measly 58,5 million kg in 2010. The significant jump in production illustrates the growing interest in the sector which has driven its recovery, to emerge as the best on the continent. The golden leaf contributes 12 percent of Zimbabwe’s Gross Domestic Product.
Previously, a preserve of a few commercial farmers, the sector has witnessed the small scale growers defy odds such as poor rains, inadequate inputs, poor skills and the shortage of curing facilities to produce a great product that has broken records on the international market.
In fact, in the 2013-2014 season small scale producers accounted for 62 percent of production and indications are that this season may witness about 18 000 new entrants. The country needs to ride on these positives and strategically offer support to such viable spots or low-hanging fruits as tobacco to leverage the economy. So much more needs to be done for the crop to realise its full potential. The growers, particularly the small and relatively new ones, have had to overcome immense challenges which need to be attended to.
Curing and grading have proved a real hassle that needs Government and tobacco associations to move in and assist. The marketing itself has been fraught with scenes of violence and disharmony as growers reject low prices while some middlemen have cheated the inexperienced growers of their hard-earned money by offering poor prices.
On the other hand, contract farming has proved more lucrative and well-organised. Zimbabwe could benefit from an expanded programme in this sphere. Furthermore, poor rains show that rain-fed production may not yield much, but that dams and irrigation infrastructure need to be put in place urgently to bolster production.
This should cease to be a mere talking point, but we should actually see action being taken in this regard. Government is obviously unable to fund all the projects, but we need partners and financiers to help. The farmers themselves can also invest some of their profits into purchasing irrigation equipment to ensure they produce sustainably going forward.
On their part, small growers need to behave more responsibly and show great initiative, particularly in terms of growing woodlots to facilitate curing. Already forests have been left bare due to haphazard cutting down of trees.
Small scale tobacco growers run the show in Brazil, the second largest grower and Zimbabwe can glean from that country’s production systems to empower the local grower. Zimbabwe can achieve much on the tobacco front once all outstanding issues such as the input costs, labour costs, curing and support from associations are attended to.
Furthermore the country has immense potential to achieve much, riding on its global standing in terms of production output in agriculture, mining and other sectors of the economy.
Indeed the tobacco sector seems to be getting its mathematics right, given its achievements and we expect other sectors to follow suit so the economy can realise its full potential.
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