Zimbabwe farmers push for localisation of tobacco beneficiation

The Tobacco Farmers Union Trust (TFUT) is calling for the localisation of tobacco beneficiation to help mitigate losses caused by adverse weather conditions and soaring production costs in Zimbabwe's lucrative tobacco sector. The appeal follows a significant 20% drop in production, with farmers yielding 231 million kilograms of tobacco during the 2023/24 farming season, largely attributed to a drought induced by the El Niño weather phenomenon.

Tobacco beneficiation refers to the process of adding value to raw tobacco, enhancing its quality, usability, and application beyond its conventional uses. This initiative aims to elevate the economic value of tobacco, ultimately benefiting both farmers and the broader economy by creating higher-value products and generating jobs within the supply chain.

Edward Dune, the deputy president of TFUT, highlighted the pressing need for localising tobacco processing to enable the local value chain to generate more revenue, which could assist farmers in coping with the challenges posed by climate change and escalating production costs.

"Tobacco margins continue to dwindle due to low yields associated with low rainfall patterns and skyrocketing input costs. High earnings often reported in the public domain are mainly benefiting some merchants, contractors, and related value chain actors," Dune stated in an interview with NewsDay Business. He underscored that the localisation of tobacco product beneficiation is a key objective of a forthcoming tobacco transformation plan, which is still in development.

Farmers are currently grappling with multiple challenges, including soaring input prices and exploitative practices by contractors, which have resulted in significant financial strain on smallholder farmers. Despite these hurdles, there is resilience in the sector, as evidenced by the successful cultivation of irrigated crops. Farmers engaged in dry land farming are busy with labor-intensive land preparation and seedling maintenance in anticipation of favorable weather conditions for the 2024/25 season, aided by expected good rains from La Niña.

However, Dune expressed concerns about the ongoing mistrust between tobacco farmers and local contractors over unpaid debts from the previous season.

Addressing the high production costs within the tobacco industry, Chelesani Moyo, spokesperson for the Tobacco Industry and Marketing Board (TIMB), mentioned several initiatives aimed at improving the viability of tobacco growers and achieving an annual yield of 300 million kilograms by 2025.

To this end, TIMB has partnered with the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) to ensure reliable power supply and lower production costs for farmers. Electricity is vital for various farming operations, including irrigation, which significantly contributes to crop quality and yield.

Moyo further explained that TIMB has collaborated with coal suppliers to provide discounted coal for tobacco curing, reducing costs from over US$65 per tonne to approximately US$45 per tonne. This initiative has already yielded substantial savings, with 5,319 tonnes of coal procured during the current season, resulting in around US$100,000 in savings.

The board has observed an increased uptake of the coal initiative, with some contractors integrating small-scale farmers into the program to ensure their viability and assist them in settling their debts.

In a TIMB weekly report for the period ending October 18, 2024, it was noted that registration of tobacco growers for the 2024/25 season had surged by 11%, rising to 110,027 growers from 99,145 in the previous season. Additionally, the area planted with tobacco increased by 3%, from 11,504 hectares to 11,849 hectares, signalling a cautious optimism within the sector as farmers prepare for the upcoming season.