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Buyers examine tobacco at the sales floor in Harare in this file photo

Oliver Kazunga Senior Business Reporter
ZIMBABWE has earned $212, 7 million from 46,2 million kilogrammmes of tobacco exported to different parts of the world since the beginning of the year.The Tobacco Industry and Marketing Board (TIMB) said as at July 18, 2014, tobacco exports were averaging $4,60 per kg with Belgium the major consumer of the golden leaf from Zimbabwe having spent $70,2 million on 14 million kgs of flue-cured tobacco.

The United Arab Emirates were on second position having consumed 5,7 million kgs valued at $16,1 million while neighbouring South Africa and China were on third and fourth positions respectively consuming 5,3 million kgs and 3,7 million kgs.

South Africa has so far spent $23,7 million on the golden leaf from Zimbabwe with $23,2 million spent on flue-cured tobacco imports.

Market watchers maintain that China and Zimbabwe’s trade in tobacco started in the 1980s after the Chinese developed an interest in the pale-to-lemon coloured tobacco produced mostly under irrigation in the Highveld areas of Marondera, Wedza, Beatrice and Harare South.

The last 10 years saw a major shift in China’s import patterns as the Asian giant broadened its scope to include all quality tobacco that is produced in Zimbabwe.

Russia was among the top five consumers of Zimbabwean tobacco importing 2,6 million kgs worth $8,8 million so far.

A total of 45 countries including Indonesia, Vietnam, Germany, the United States of America, Botswana, Zambia, Korea, Egypt and Malawi were at the moment importing tobacco from Zimbabwe.

The crop, which was the major foreign currency earner for Zimbabwe before the adoption of a multicurrency system in February 2009, has continued to play a critical role in sustaining the country’s economy in light of the prevailing liquidity crunch.

Last year, Zimbabwe earned more than $1,3 billion from tobacco receipts compared to $800 million in 2012.

In the past five years, the number of growers that have shown interest in venturing into tobacco farming has been on the increase.

“To date, about 106,456 growers have registered for 2014 season compared to about 91,278 who had registered by the same period last year,” said TIMB.

Meanwhile, the tobacco marketing board said despite the closure of the marketing season recently, the number of active contractors who were still buying tobacco has dropped to four.

Purchases made by contractors this season have risen to 162,5 million kgs at an average price of $3,32 a kg.

Total seasonal purchases were 213,2 million kgs as at July 25, 2014. During the same period in 2013, about 162,2 million           kgs were sold at an average price of $3,76 a kg.

The current seasonal price has remained stagnant at $3,17 a kg compared to $3,69 a kg achieved last year in a parallel period.