$19m tobacco sold

15 Apr, 2019 - 12:04 0 Views
$19m tobacco sold

eBusiness Weekly

BH24 Reporter
HARARE – At least 11, 3 million kilograms of tobacco worth about $19 million  have been sold so far at auction and  contract floors in the country since the marketing season opened last  month, statistics from the industry regulator show. 

Previously a preserve for white commercial farmers, tobacco farming is fast becoming an attractive source of livelihood for many Zimbabwean small scale and communal farmers.

In a trading update on day 17 of business, the Tobacco Industry and Marketing Board (TIMB) said sales had declined by 42,8 percent for the auction system to $2 986 473 from $5 222 630 million and 66 percent for the contract system as compared to the same period last year.

The average price for auction and contract floors stood at $1,66 per kg which is 39 percent lower than the $2,60 of the 2018 marketing season.

The highest price stood at $4, 50per kg while the lowest was at $0,20.

Tobacco output in Zimbabwe is expected to decline by as much as 15 percent this year owing to the bleak weather conditions under which the  crop was grown.

The tobacco being sold this year was grown under grim weather  conditions characterised by late rains and prolonged dry spells,  particularly when the crop was almost ready for harvesting, prompting  authorities to review projections downwards.

Last year, the country produced an all-time high of 252 million kilogrammes of tobacco, earning at least a billion dollars in revenue.

Tobacco is arguably one of the success stories of agriculture in the post-land reform era

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