Business / Local
Tobacco farmers earn more than US$200m
22 May 2016 at 10:43hrs | Views
Tobacco farmers have grossed more than US$200 million from 70,6 million kg that have been delivered 33 days into the 2016 marketing season, a gain of more than US$60 million on revenues realised over the same period a year ago.
By the same point in 2015, farmers had delivered 49,8 million kilogrammes worth US$140 million. So far, the country has earned US$446 million compared to US$434 million in 2015, while exports have risen to US$246 million from US$234 million.
A total of 42,5 million kg of tobacco has been exported to 38 countries in 2016. This marketing season, average tobacco auction prices have firmed by 1,1 percent to US$2,83 per kg from US$2,80 2015. Statistics from the Tobacco Industry Marketing Board's bulletin show that China accounted for over 20,2 million kg valued at US$163,8 million, while South Africa bought 8,1 million kg for US$24,8 million. China has been spending over $200 million per annum on Zimbabwean tobacco.
The bulletin reads: "As of (Thursday), 42,5 million kg were exported to more than 30 countries so far, generating US$246,3 million into the local economy. The golden leaf is presently being exported to these countries at an average price of US$5,79 a kg compared to US$6,01 (in) the same period last year."
Indonesia has spent US$11,6 million on 2,1 million kg and Belgium has bought 1,9 million kg valued at US$10 million. Russia has purchased two million kg worth US$6,7 million.
Other buyers include the United Arab Emirates, Bulgaria, Vietnam, Hong Kong, France, The Netherlands, Germany, Sudan and Tanzania.
But the number of tobacco farmers for the 2015/2016 farming season has declined to 71 728 from 92 430 recorded in the previous season.
The Zimbabwe Farmers' Union adds that the total area planted has declined four percent.
"Lack of confidence in market prices and poor rains are some of the reasons the planted area has gone down. This is witnessed by the drop in the number of registered growers for the 2015/16 season," the union said.
Experts forecast a harvest of around 160 million kg this season.
By the same point in 2015, farmers had delivered 49,8 million kilogrammes worth US$140 million. So far, the country has earned US$446 million compared to US$434 million in 2015, while exports have risen to US$246 million from US$234 million.
A total of 42,5 million kg of tobacco has been exported to 38 countries in 2016. This marketing season, average tobacco auction prices have firmed by 1,1 percent to US$2,83 per kg from US$2,80 2015. Statistics from the Tobacco Industry Marketing Board's bulletin show that China accounted for over 20,2 million kg valued at US$163,8 million, while South Africa bought 8,1 million kg for US$24,8 million. China has been spending over $200 million per annum on Zimbabwean tobacco.
The bulletin reads: "As of (Thursday), 42,5 million kg were exported to more than 30 countries so far, generating US$246,3 million into the local economy. The golden leaf is presently being exported to these countries at an average price of US$5,79 a kg compared to US$6,01 (in) the same period last year."
Indonesia has spent US$11,6 million on 2,1 million kg and Belgium has bought 1,9 million kg valued at US$10 million. Russia has purchased two million kg worth US$6,7 million.
Other buyers include the United Arab Emirates, Bulgaria, Vietnam, Hong Kong, France, The Netherlands, Germany, Sudan and Tanzania.
But the number of tobacco farmers for the 2015/2016 farming season has declined to 71 728 from 92 430 recorded in the previous season.
The Zimbabwe Farmers' Union adds that the total area planted has declined four percent.
"Lack of confidence in market prices and poor rains are some of the reasons the planted area has gone down. This is witnessed by the drop in the number of registered growers for the 2015/16 season," the union said.
Experts forecast a harvest of around 160 million kg this season.
Source - Sunday Mail
