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Mukudzei Chingwere and Precious Manomano

The 2024 Tobacco marketing season opened in Harare yesterday, with Vice President Constantino Chiwenga optimistic that deliveries will be high despite the ravaging effects of the El Nino-induced drought.

The official opening saw the first bale going under the hammer for US$4,92 per kilogramme up from US$4,35 registered on day one last year.

VP Chiwenga said in 2020, President Mnangagwa launched the Agriculture and Food Systems Transformation Strategy which has now been refined to the Agriculture, Food Systems and Rural Transformation Strategy, aimed at enhancing agriculture production, productivity and profitability in line with the National Development Strategy 1.

“I am happy that the estimates which I have been given, regardless of the difficult year we have all experienced, will not go down below those of 2021, the figures will be hovering above,” said VP Chiwenga.

“While we will not get the 300 million kgs we wanted, I am happy that the irrigated crop has proved to be good. The 2024 season is looking good, we will recover.

“Government regards the tobacco industry as a sector with great potential to grow and increase our country’s export earnings. This realisation led to the launch of the Tobacco Value Chain Transformation Plan.”

Tobacco production is this year expected to be around 265 million kilogrammes, below last year’s 296 million kg and the initially envisaged 300 million kg after some targets were not met due to the El Nino-induced drought.

VP Chiwenga expressed concern that the country continues to export 98 percent of tobacco in its raw form, consequently exporting jobs and value.

“In tandem with our value addition and beneficiation thrust, the Second Republic has laid down a comprehensive plan in the tobacco value chain.

“As Government, we are creating an enabling environment for entities interested in value addition and beneficiation of Zimbabwean tobacco in the broader framework of a private sector led economy,” he said.

In May, World Tobacco Africa will host the all-new Africa Leaf Tobacco Conference in Harare, alongside an exhibition of suppliers to the industry and VP Chiwenga urged local stakeholders to fully participate.

The VP also implored the Tobacco Industry and Marketing Board (TIMB) to ensure fairness and transparency in tobacco marketing and urged farmers to continue growing tobacco in a manner that is sustainable and environmentally eco-friendly.

The golden leaf, as tobacco is colloquially referred to, is the country’s single second largest foreign currency earning product after gold and Government is keen to see its continued production growth, and targets to grow the tobacco value chain into a US$5 billion industry by 2025 through the Tobacco Value Chain Transformation Plan.

TIMB chairman Mr Patrick Devenish said the country’s tobacco sector will be fine-tuned to meet global benchmarking when it hosts the World Tobacco Africa Conference in May.

He said the tobacco industry relies on maintaining the highest standards and implored players to be disciplined.

He said production this year was hampered by drought as 113 101 hectares were planted compared to 117 645 hectares last year and registered growers had decreased to 115 114 from 148 300 last year.

“The Board has also approved decentralised contract sales to be conducted at five designated centres and these are Karoi, Mvurwi, Bindura, Marondera and Rusape,” said Mr Devenish.

“This season, RBZ (Reserve Bank of Zimbabwe) advised that the foreign currency retention for tobacco is 75 percent in line with the retention level for other market players.

“Despite our efforts of restoring order and sanity in the industry, we are still grappling with the challenge of growers who continue to cut down indigenous trees for curing tobacco.

“The cutting down of indigenous trees is attracting a lot of negative attention from the global market, with some threatening to stop partnering with us.

“To alleviate this challenge, the board has partnered with Hwange Colliery and Kutsaga to provide tobacco farmers with discounted coal for curing,” said Mr Devenish.

Government wants to ramp up tobacco production to a national yearly target of 300 million kilogrammes by 2025 which is a key anchor of the broader national vision of an upper middle-income economy as enunciated by President Mnangagwa. 

Growers yesterday expressed satisfaction with the selling price at the auction floors and most are optimistic that this might turn out to be a better marketing season.

This year two auction floors; Tobacco Sales Floor and Premier Tobacco Auction Floors, have been licenced by TIMB.

 The floors handle deliveries of tobacco not grown under contract and help create the pricing system that then applies to the contracted crops, with adjustments up and down for quality.

Tobacco farmer, Mr Edmore Mukari of Bindura said he is happy that prices were firmer than last year because of low volumes.

“If the prices continue like this, we will manage to go back to the field again. This year the crop was affected in both quality and quantity. We are optimistic that the marketing season will progress well,’ he said.

Another farmer, Mr Fredrick Mapuranga of Hurungwe under Chief Mujinga said prices were fair.

Contract tobacco sales will be conducted in Harare and approved decentralised selling centres.

Prices on auction floors will be determined by a bidding process where the highest bid will be the final price on every tobacco bale.

About 132 375 growers have been registered and 119 320 were contracted this season.