Zimbabwe farmers reject low tobacco prices

Zimbabwe's 2026 tobacco marketing season opened under a cloud of discontent, with farmers rejecting what they described as extremely low prices offered by buyers on the first day of sales.

Opening bids at auction floors in Harare ranged from about US$1 per kilogram to as low as 45 cents, sparking resistance from growers concerned that the season could bring sharply reduced earnings. Only a handful of buyers were active on the first day, although prices are expected to firm as more buyers enter the market in the coming weeks.

President of the Zimbabwe Tobacco Growers Association (ZTGA), George Seremwe, said the initial offers were unacceptable.

"It's disappointing and we can't convince our farmers to give away their crop for a song. The offer is just too little. It's depressing," Seremwe said.

However, industry analysts caution that prices are unlikely to reach last season's levels due to a global surplus of tobacco leaf weighing heavily on demand. Zimbabwe is anticipating what could be a record harvest this year, but increased supply from major producers such as Brazil, Zambia, and Tanzania has contributed to a saturated international market.

The situation has been further complicated by China's decision to reduce tobacco imports. Traditionally Zimbabwe's largest buyer, China has scaled back purchases amid economic adjustments and shifting consumer preferences, with smokers increasingly opting for super-slim cigarettes that require significantly less tobacco leaf.

Industry veteran and tobacco buyer Cyprian Foya said global conditions would largely determine this season's pricing trends.

"The pricing dynamics this year will hinge heavily on global conditions rather than local expectations," Foya said. "There is a global oversupply and it's well known how such situations affect prices. Zimbabwe tobacco remains a priority choice, but we cannot control limitations in demand. Like any commodity, prices fluctuate and will eventually return to equilibrium."

Buyers, constrained by weaker demand from major markets, are expected to adopt a cautious bidding approach, particularly for mid- and lower-grade tobacco. This could further strain farmers already grappling with rising production costs. Some growers are now calling for improved financing mechanisms and broader access to alternative export markets to cushion them against global volatility.

Despite the challenging outlook, Zimbabwean tobacco continues to enjoy a strong international reputation, especially for its high-grade flue-cured leaf. Chairperson of the Tobacco Industry Marketing Board (TIMB), Peter Davenish, revealed that exports remained robust, with Zimbabwe earning US$399.8 million from tobacco exports by mid-February 2026. Demand from the Far East, Europe, Africa and the Middle East has sustained export performance.

"This underscores global confidence in Zimbabwe's tobacco quality and reliability," Davenish said at the official opening of the auction floors in Harare.

For the 2026 season, authorities have licensed 48 contractors — including 47 flue-cured tobacco contractors and one shisha contractor — along with 47 Class A buyers. Three auction floors will operate this year: Tobacco Sales Floor, Premier Tobacco Auction Floors, and the newly licensed Ethical Sales Floor. Five decentralised selling centres will also open nationwide to reduce travel distances and marketing costs for farmers.

Smallholder farmers account for about 85 percent of Zimbabwe's tobacco production, making the crop a vital source of income for rural households. As the season unfolds, growers will be watching closely to see whether increased buyer participation can lift prices in the weeks ahead.