Tobacco Exports Gross US$86 Million In Zimbabwe

Scale of Zimbabwe tobacco exports. The Southern African state is a major producer of the crop., a photo by Pan-African News Wire File Photos on Flickr.

Tobacco exports gross US$86m

Tuesday, 02 April 2013 00:00
Rumbidzayi Zinyuke
Zimbabwe Herald

ZIMBABWE has so far earned more than US$86 million from the sale of 21,4 million kilogrammes of tobacco at an average price of US$4,04 per kg.

This is almost double the total sales of tobacco at the same time last year, where just over US$46 million was realised from the sale of 11 million kg at an average price of US$4,05 per kg.

Latest statistics from the Tobacco Industry and Marketing Board show that South Africa, which has taken over as the leading importer of the crop, paid US$23,1 million for 7,6 million kg of tobacco at US$3,01 per kg.

During the same time last year, South Africa had taken up 1,5 million kg of tobacco worth US$4,8 million at US$3,10 per kg.

The second highest importer in terms of value of tobacco bought is China, which continues to buy it at very lucrative prices.

China has so far paid US$16,1 million for 1,79 million kg at US$9 per kg. During the same period last season China paid US$13, 5 million for 1,8 million kg at US$7,43 per kg.

The United Arab Emirates, the third highest importer, has so far imported over 2 million kg worth US$4,9 million, at an average price of US$2,43 per kg.

This is an increase from 146 520kg valued at US$577 289 exported at the same time last year at an average price of US$3,94 per kg.

Belgium has so far taken up 1,5 million kg worth US$4,9 million, a slight improvement from 1,6 million kg bought last year.

Hong Kong has significantly increased its uptake of Zimbabwean tobacco with more than 1,3 million kg worth US$10,9 million from 415 800kg worth US$2,7 million taken up last year.

Price stagnation irks tobacco growers
Meanwhile, tobacco sales at the auction floors grossed US$111 million during the past six weeks since the opening of the 2013 selling season in February.

This is almost treble the 31 million kg sold during the same period last year.

At least 182 952 bales were delivered to the three floors — Boka, Tobacco Sales and Premier — by farmers for auctioning, while 230 075 bales were sold under contract.

A total 27 204 bales were rejected for various reasons this season compared with 21 055 bales recorded last year.

On daily total sales, 699 621kg worth US$2,6 million of the golden leaf were sold on day 19, compared with last year’s figure of 627 304kg worth US$2,3 million.

The projected earnings amount to US$600 million from the current selling season which ends in August.

Agriculture experts contend that the firming in tobacco sales in the country is a reflection of the high prices the golden leaf is fetching on the international markets.