Tobacco.org

RUZVIDZO: The leaf couldn’t be more golden! 

Reports that Zimbabwe's tobacco could be in higher demand internationally bring good news to consolidate the growth that the sector has begun to enjoy in the last few years. That production in Brazil and USA is subdued due to floods this year means that many buyers will look up to Zimbabwe to fill the gap. This naturally translates into higher prices as the forces of supply and demand come into play. We certainly hope that output is as high as anticipated.

Last year's average of US$3,36 for flue-cured tobacco is certainly set to be surpassed.

What a windfall! The golden leaf couldn't be more golden. The many growers that have decided to join this sector are certainly not regretting. The farmers should be smiling that their hard work will certainly be worth the while.

Brazil's production is believed to be down by 150 million while USA has had to revise its figures downwards by 50 million. Zimbabwe is expected to sell at least 150 million kg this year. The tobacco sector, fraught with many challenges that adversely affected production figures, should use this season as an opportunity to consolidate the growth experienced in the last two seasons. . . .

China, one of this country's biggest clients, will be seeking to buy more than the 40 million kg it imported last year. Given all the positives around tobacco new growers will need assistance in terms of financial discipline if they intend to stay in the sector for a long time.

Reports of impulse buying and farmers being cheated of their hard-earned cash would be a sad way of seeing their sweat going down the drain.

We applaud the Zimbabwe Farmers' Union for taking the initiative to encourage farmers to use plastic money which would come in handy at a time when cash sources are constricted. For now we will stand on TIMB

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All licensed tobacco auction floors in Harare 

TOBACCO growers will sell their crop at auction floors in Harare only this year because all firms that applied for licences to operate in other provinces failed to meet stipulated standards. Tobacco Industry and Marketing Board chairperson, Mrs Monica Chinamasa, yesterday said companies out of Harare could not meet the requirements although some had already put up structures.

She said the decentralisation of tobacco auction floors had now entered the second phase.

She said the first phase of decentralisation was done by TIMB, which decentralised its offices to provinces to enable farmers to book and register nearer to their farms.

"It is a long process, which cannot be completed in a single season.

"This season some companies in Karoi and Mvurwi applied for licences but could not meet the standards required to operate auction floors," she said.

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Govt happy with tobacco auction floors’ preps 

Government is satisfied with the state of preparedness of auction floors ahead of the start of the 2012 tobacco-selling season on Wednesday next week. Deputy Minister of Agriculture, Mechanisation and Irrigation Development, Mr Seiso Moyo yesterday said he was impressed after touring four auction floors that were licensed to operate this season.

Four auction floors namely Tobacco Sales Floor Limited, Boka Tobacco Auction Floor, Millennium Tobacco Floors and Premier Tobacco Auction Floor will operate during the 2012 tobacco-selling season.

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‘Tobacco exports to hit 140m kg’ 

Zimbabwean tobacco this year is likely to be sold at first grade rate worldwide, Tobacco Industry Marketing Board CEO Andrew Matibiri told Parliament yesterday.

Matibiri appeared before the Parliamentary Portfolio Committee on Agriculture, Lands, Water and Resettlement chaired by Chikomba Central MP, Moses Jiri, to give oral evidence on the tobacco marketing season opening next week.

“In as far as the worldwide situation is concerned, Zimbabwean tobacco is likely to be sold at a premium,” said Matibiri, adding that around 140 million kg of the “golden leaf” were likely to be exported this year.

“This is due to the fact that countries like Brazil were affected severely by floods four weeks ago and tobacco production will be down by 150 million kg,” he said.

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Zimbabwe expects 15% rise in tobacco output 

Zimbabwe's tobacco output is expected to increase by nearly 15 percent this year to reach 150,000 tonnes, an official said on Tuesday, predicting good returns for farmers.

"The target for this year is 150 million kilogrammes," Monica Chinamasa, chairwoman of the Tobacco Industry and Marketing Board told lawmakers ahead of the start of the tobacco selling season next week.

The board's chief executive Andrew Matibiri said farmers would benefit from the slump in output in Brazil and the United States due to floods, with the market about 5-10 percent short of tobacco.

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EDITORIAL: Avoid last season’s chaos at tobacco auction floors 

The 2012 tobacco selling season starts on February 15 with indications that a bigger crop volume will be auctioned at the sales floors this season. The Tobacco Industry and Marketing Board, which is the regulatory authority, forecasts that over 150 million kg of flue-cured tobacco will be sold against 131 million kg sold last season. Indeed, an increase by over 20 million kg calls for celebration given that production had tumbled to less than 100 million kg a few years ago, largely because farmers were still settling at their new farms following the land reform. While we are excited about the growth in production, we remain cautious about the ability of the auction floors to handle the volume. The chaos that marked last season's selling period is still fresh in the memories of many people. . . .

Farmer organisations should also play a role in educating farmers on preparing for the auction floors, in terms of grading, baling, quality and pricing so that farmers do not always believe buyers are only there to rip them off.

Let us do everything possible that encourages tobacco production. Farmers and contractors do their part to grow the crop and likewise we would expect the buyers, TIMB and the auction floors to do everything possible to encourage the continued production of tobacco.

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Low tobacco drags down TSL profits 

Lower than expected tobacco output and increased operating costs pushed TSL Limited profits down by 26% for the full year ended October 31 2011.

The group recorded profits of $1,7 million compared to $2,3 million in 2010.

Although the group recorded a decline in profits, its revenue rose to $47,9 million indicating a 29% increase from $37,2 million during the comparative period.

Company chairman Charles Nyereyegona said: This decline was attributable to lower than expected tobacco output, increased operating costs and downward pressures on selling prices.

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Floors jostle for tobacco farmers 

Competition is likely to be stiff among the four tobacco auction floors as evidenced by the level of preparedness and investment being put in ahead of the 2012 marketing season, an official said on Friday.

Officials from the Tobacco Marketing Board (TIMB) toured the floors last week to check on their preparedness.

The floors are scheduled to open on February 15. TIMB chairperson Monica Chinamasa said: Some are going to the extent of sending trucks to farmers while others are giving fertilizers and chemicals to farmers to create a platform were growers can bring more tobacco.

Boka Tobacco auction floors chief executive officer Rudo Boka said the company had invested $2 million towards a refurbishment exercise to prepare for the marketing season.

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Tobacco reaping at an advanced stage 

TOBACCO reaping is now at an advanced stage in Manicaland, amid reports that most farmers are harvesting proper leaves of the largely ripe irrigated crop. Agritex head for Manicaland, Mr Godfrey Mamhare, on Wednesday confirmed that tobacco harvesting in the province, which started mid-December was at an advanced stage. The crop was planted in October.

He said harvesting for the dryland was expected to start mid-February. Mr Mamhare added that farmers with the dry-planted tobacco crop must concentrate their efforts on weed and pests control, suckers and toppings removal to ensure maximum crop health. Mr Mamhare revealed that Manicaland planted 10 254ha of tobacco compared to 9 000ha last season.

"The condition of the crop is very impressive.

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• Special Assignment investigates the world of tobacco mules  

In the latest episode of Special Assignment, which will air on 26 January on SABC3, the team shows viewers the fascinating but scary world of tobacco mules. This is a small but organised and significant side of the illegal tobacco smuggling business which thrives on transporting small consignments of illegal tobacco from Zimbabwe to South Africa using various routes and modes of transport.

“Gold Leaf”: a Special Assignment investigation

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Golden crop ... TIMB expects output increase in 2012  

ZIMBABWE’S Tobacco Industry and Marketing Board (TIMB) are optimistic production will continue to recover this year despite the many challenges that farmers have been facing. Last year tobacco sales closed with about 131 million kg having gone under the hammer.

There are fears output could decline this year due to challenges that farmers faced, mainly high cost of agricultural inputs, particularly fertilizer and chemicals. But TIMB chief executive, Dr Andrew Matibiri said the country should still see an increase in production this year.

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• Zimbabwe's Tobacco Industry On Recovery Path After Decade Of Decline  

The tobacco industry in Zimbabwe is on the recovery path following a decade of decline which has seen production dipping to a low of 48.8 million kilogramme in 2008 from a peak of well over 200 million kilogramme (kg) in 2000.

The adoption of multiple currencies in 2009 ignited the recovery with about 60 million kg being produced that year, and doubling to 123 million kg the following year.

In 2011, tobacco sales closed with about 131 million kg having gone under the hammer at auction and tobacco production has been the main driver behind the 34 per cent growth in Zimbabwe's agricultural sector.

The Tobacco Industry Marketing Board (TIMB) has set the season's target of tobacco output at 150 million kg from 77,000 hectares of the crop.

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Farmers start harvesting irrigated tobacco 

Some farmers with irrigated tobacco have started harvesting and curing their crop at a time when those on rain fed farms are still planting.

About 22 000 hectares have been put under tobacco this year out of a target of 70 000 with planting still underway.

At least 11 000 hectares of the planted area is under irrigation compared to 13 000 hectares last year. More than 65 000 farmers registered to grow the crop in the 2011/12 cropping season compared to 52 000 the previous year.

Traditionally, tobacco planting officially ends on December 31.

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• Tobacco Farming Negatively Impacts Zimbabwe's Indigenous Forests 

Zimbabwe’s indigenous forests are disappearing at an unprecedented rate. Thousands of new tobacco farmers say they have to use wood to cure their crop because they cannot afford coal mined in western Zimbabwe.

The forests were in relatively good shape, compared to some other countries in the region like Zambia, for example, where many forests were lost to charcoal production. But, in the last three years, Zimbabwe’s natural resource experts and the government estimate that more than 300,000 hectares of indigenous forests are now destroyed annually by new, mostly small-scale tobacco farmers, who use wood to cure the leaves.

Zimbabwe is the world’s third largest producer of tobacco - an export industry that is attracting many. Four years ago there were about 3,500 small-scale tobacco farmers. This season there are at least 47,000 of them.

Thomas Chitate, 35, began growing tobacco 200 km north of Harare five years ago on land seized since 2000 from white commercial farmers.

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China, Europe dominate tobacco exports 

China and European countries dominated seasonal exports this year, figures by the Tobacco Industry and Marketing Board have shown.

According to the figures, total seasonal exports totalLed 137 462 406kg earning the country $681 million at an average price of $4,96 per kg.

A total of 51,9 million kg of tobacco was sold at $376 million at an average price of $7,24 per kg to China.

Exports to Belgium, United Kingdom, Germany, France, Poland, Netherlands, Australia, Yemen and Italy amounted to at least $100 million.

While seasonal import mass was at 19 510 tonnes kg with a value of $65,5 million at an average price of $3,36 per kg.

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