Tobacco sales conducted so far have raked in a total US$793,2 million , a figure which is 54% up compared to the total sum realized in the same period last year, the Tobacco Industry Marketing Board (TIMB) revealed this week.
According to the latest update, 262,6 million kgs of tobacco has been sold to date compared to 170,1 million kgs sold last year signifying a 54,3% change
“A total US$793,2 million has been realised compared to US$515,9 million during the same period last year at an average price of US$3,03 per kg,” TIMB said.
The update also shows that 3,4 million bales have been laid from 2,2 million recorded last year
A total 3,3 million bales were sold compared 2,2 million last year
However, indications on the ground show that the highest rate paid during the current selling season at US$6,10per kg is quite lower compared to US$6,80 paid during the same period last year.
The current market figures confirm earlier predictions indicating that Zimbabwe’s tobacco production is expected to rise 8.5% year-on-year to 230 million thios year following good rains and an increase in the number of farmers pursuing the crop.
Tobacco is one of the biggest export earners in Zimbabwe, which aims to increase production to 300 million kg by 2025. Its output peaked at 261 million kg in 2019.
After the collapse of commercial agriculture following the government’s seizure of land from many white farmers in 2000, tobacco has emerged as the most successful sub-sector.
The sector contributes nearly $1 billion to export earnings every year with government statistics showing it accounted for more than 12% of exports in January.
TIMB has since revealed that tobacco land use grew to 117,000 hectares this year from 110,000 hectares in 2022.
The industry also saw an increase in the number of tobacco farmers to 148,527 this year from 123,000 in 2022.
