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Mashonaland Tobacco Company (MTC) invested $37 million in inputs given to 12,600 farmers who grew tobacco on a contract basis during the 2013/14 agricultural season, Parliament heard on Tuesday.Appearing before the Parliamentary Portfolio on Agriculture, Lands and Irrigation MTC managing director Kenneth Langley said the company’s investment in contract tobacco had sharply increased over the years.

“Our investment in contract tobacco growing has increased from $21 million to nearly $37 million. We have invested in supplying inputs and finance to our growers,” he said.

Langley said 74 percent of total tobacco produced under BTC’s out grower scheme came from small holder growers with the remainder coming from large and medium scale growers.

“Out of the 12,600 growers we financed this season, only 35 are large scale farmers,” he said.

MTC is the largest single contractor of small holder tobacco farmers in Zimbabwe.

The firm, which ventured into contract growing in 2004, has been operating as a leaf merchant in Zimbabwe since 1936 and supplies packed tobacco to global markets.

Langley said contract farming provided farmers with a guaranteed market of tobacco.

“For us it gives us a stable and sustainable tobacco base to supply our clients.

“Contract farming accords us traceability of tobacco which many blue-chip companies want, we are able to trace back to source where that leaf was produced,” said Langley.

This year, a total of 16 contractors supplied farmers with inputs.

According to the Tobacco Industry and Marketing Board, contractors handled 70 percent of the 207 million kgs of tobacco that has been sold since the opening of the 2014 marketing season.

Zimbabwe’s three auction floor operators have criticised contract growers for pushing them out of business as they are sharing the remaining 30 percent of the business.

Meanwhile, at least 216,087kg of tobacco were sold at two of the auction floors during clean-up sales conducted on Tuesday and Wednesday this week.

The mop-up sales were conducted at Boka and Tobacco Sales Floors.

Statistics released by the Tobacco Industry and Marketing Board (TIMB) show that the TSF handled 132,739 kg while the remainder was sold at Boka Tobacco Floors.

The tobacco was sold at an average price of $1.45 per kilogramme.

TIMB director technical services Meanwell Gudu confirmed that the clean-up sales were conducted over two days.

“The clean-up sales spanned over two days at TSF and BTF.”

“Auction sales have been concluded but contract sales are continuing until further notice,” he said.

Auction sales were closed on June 27 this year and the clean-up sales were conducted to mop up tobacco remaining on farms.

At least 210.5 million kg of tobacco worth $668 million have so far been sold through both auction and contract sales since the 2014 marketing season opened in February this year, bringing the country closer to reaching the peak of 236 million kg that it produced in 2000. – New Ziana