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Zimbabwe has achieved a significant milestone in its tobacco exports, surpassing 100 million kilograms and generating $529.2 million in revenue. This increase in demand for the country’s tobacco, also known as the golden leaf, was reported by the Tobacco Industry and Marketing Board (TIMB). Comparatively, during the same period last year, tobacco exports reached 93 million kilograms at an average price of $4.62 per kilogram.
According to Emmanuel Matsvaire, the acting CEO of TIMB, the Far East continues to be the primary destination for Zimbabwe’s tobacco. Currently, 105 million kilograms of tobacco have already been exported, with the Far East accounting for approximately 41% of the total exports. Matsvaire said:
<blockquote>
Currently, 105 million kilogrammes of tobacco have been exported to date at an average price of US$5,04 per kg. The Far East remains the top destination for Zimbabwe tobacco with about 41% of current total exports being destined for the Far East.
</blockquote>
Statistics reveal that in 2016, the Far East absorbed 52% of total exports, which decreased to 43% in 2022. China and Indonesia serve as the main markets for Zimbabwe’s tobacco, while the European Union and Africa also play significant roles, together accounting for 37% of total exports in 2022.
Zimbabwe is optimistic that this year’s tobacco exports will exceed the 199 million kilograms exported last year, buoyed by favourable rainfall across the country. The 2023 tobacco auction marketing season officially closed on July 31, 2023, but the contract floors and delivery sites, responsible for approximately 95% of the crop, will remain operational until all deliveries are completed.
However, TIMB’s official statistics indicate that more farmers are turning to contract farming due to a lack of funding, leading to concerns about increasing debt burdens. This cycle of borrowing from tobacco companies and being tied to exclusive contracts has placed farmers in a precarious situation, with the threat of losing their properties or facing legal action. The challenges faced by farmers in servicing their loans could have adverse effects on the Zimbabwe tobacco industry’s production levels in the upcoming season, compounded by rising production costs.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Pindula News

Zimbabwe Exceeds 100m Kg In Tobacco Exports, Earning $529.2m In Revenue

The <a href="https://www.pindula.co.zw/Tobacco_Industry_Marketing_Board">Tobacco Industry and Marketing Board (TIMB)</a> has suspended a tobacco contractor from operating on allegations of them defrauding farmers.
TIMB said Vision Leaf Tobacco management was suspended after an assessment which discovered some anomalies in the contractor’s operations. 
In a communication to the contractor, TIMB said: 
<blockquote>
Consequently, the TIMB has suspended your contract sales with immediate effect and you are directed to stop conducting sales and resumption will be determined by your remedying of the above issues.
</blockquote>
TIMB public affairs officer Chelesani Tsarwe said the contractor was suspended for violating the Contractors’ Compliance Administration Framework. Tsarwe said in an interview with ZimLive:
<blockquote>
This includes altering Goods Received Vouchers (GRVs), non-disclosure and or absence of prices of inputs issued to farmers and underfunding only to charge abnormally high a mark-up rate for inputs is a way through which contractors defraud the tobacco grower.
The welfare of the grower is at the epicentre of TIMB’s operations and this season we will not allow the grower to be victimised.
We have a tough stance against non-compliance to industry regulations, short-changing tobacco growers and other actions that destabilise the tobacco industry.
</blockquote>
Over the years, tobacco farmers have cried foul over deductions made by contractors for inputs supplied, accusing them of inflating prices.
Officially opening the 2023 tobacco selling season recently, Vice President Constantino Chiwenga implored the TIMB to ensure transparency and fair tobacco sales at the contract and auction floors.
Zimbabwe expects to produce 230 million kilograms of tobacco this year, up from 212 million kilograms last year, following good rains and after more farmers planted the crop.
<h2><a href="https://zero.pindula.co.zw/">More Pindula News</a></h2>

TIMB Has Suspended A Tobacco Contractor For Defrauding Farmers

At least 27 third-party tobacco contractors are said to have been ditched by their respective principal contractors for fueling side marketing and failing to pay farmers in time.
This means they will not be able to register for the 2023 cropping season, according to <a href="https://www.sundaymail.co.zw/end-of-the-road-for-tobacco-side-marketers">Sunday Mail.</a>
Third-party or surrogate contractors are small tobacco companies, accommodated by big players to access the Tobacco Industry and Marketing Board (TIMB) market without raising the minimum capital required.
The Sunday Mail reports that six major companies – Zimbabwe Leaf Tobacco (ZLT), Mashonaland Tobacco Company, Inter-Continental Leaf Tobacco (ILT), Curverid Tobacco, Premium Leaf Tobacco and Boost Hail and Cotton – have cut ties with some of their surrogates, in a bid to preserve their good standing in the market.
Some of the surrogates have already appeared before courts on various charges of prejudicing farmers. These include:
<blockquote>
i). Ethical Leaf Tobacco (ELT), 
ii). Central Leaf Tobacco (CTF), 
iii). Grandincore Tobacco Company and 
iv). Bigway Leaf Tobacco (BLT) 
</blockquote>
There were indications from the authorities that the liability incurred by surrogate contractors is now set to extend to principal contractors.
This development has led to a bloodbath, as principal contractors are seeking to self-preserve.
Mashonaland Tobacco Company (MTC) managing director says they had five surrogates but they have dropped four, remaining with Norton Leaf Tobacco (NLT) only. 
Zimbabwe Leaf Tobacco Manager, Mr Campbell Mason, said the company has parted ways with all its surrogates. He, however, could not share the reasons behind the termination.
TIMB public relations officer Ms Chelesani Moyo said the vetting is ongoing and those who meet requirements will be given the green light to continue with their work.
<h2><a href="https://zero.pindula.co.zw/">Pindula News</a></h2>

About 27 Third-party Tobacco Contractors Ditched For Fueling Side Marketing, Late Payments

Farmers have earned US$494.9 million from the sale of 163.7 million kilogrammes of tobacco since the opening of the marketing season in March.
The latest statistics from the <a href="https://www.pindula.co.zw/Tobacco_Industry_Marketing_Board">Tobacco Industry and Marketing Board (TIMB)</a> show that production during the 2021/22 season, production dropped by 10 per cent while farmers’ income fell by 0.5 per cent as prices firmed. 
The 180.5 million kilogrammes sold last season were valued at US$497.2 million.
TIMB chief executive Mr Meanwell Gudu said a poor rainfall season as a result of climate change had contributed to reduced yields this year. He said:
<blockquote>
The decline in volumes is attributed to the poor quality of the rainfall season which was characterised by lateness, incessant rains followed by mid-season drought so it compromises the yield of the crop.
Overall, the quality is quite good as shown in the average price which is 10 percent firmer as compared to the same time last year.
</blockquote>
<h2>Prices</h2>
Prices at auction floors are moderately firmer compared to contract floor prices, although the highest prices have been obtained on the contract floors. The average price on day 61 (Tuesday):
<blockquote>
a). On the auction floor, it was US$3.13/kg,
b). On the contract floors, it was US$3.01/kg.
</blockquote>
The highest price:
<blockquote>
i). On the auction floor it is US$4.99/kg 
ii). On the contract floors it is US$6.80/kg.
</blockquote>
<h2>Sales </h2>
So far farmers have sold 10.6 million kg for US$34.4million through the auction floors while the contracted growers have sold 153 million kg for US$460.5 million.
Zimbabwe Integration Commercial Farmers Union president Mrs Maivepi Jiti said the tobacco season was now coming to an end with almost 75 percent of tobacco growers having sold their tobacco.
Tobacco is one of the major sources of foreign currency from the agricultural sector contributing almost US$800 million every year.
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Tobacco Farmers Earn Combined US$494.9 Million

Stakeholders in the tobacco industry have expressed their fears over the possibility of price manipulation due to the demise of the auction system.
The fears are triggered by the fact that a paltry four (4) percent of farmers self-funded this year while the majority were financed by contractors which means that very little volume will be sold through the auction system.
Zimbabwe has a dual marketing system where the tobacco is sold through both auction and contract but the obtaining situation suggests that little tobacco will go through the auction.
Therefore, the auction system might not be able to determine the minimum grade price of tobacco since the volumes that go through the auction are insufficient.
Speaking to The Sunday Mail Business, Tobacco Industry Marketing Board (TIMB), chief executive officer Dr Andrew Matibiri allayed the fears of price manipulation. He said:
<blockquote>Many farmers will be de-contracted and will be free to sell through the auction system.
We hope this will provide reasonable volumes to prop up the auction.
If this does not happen, we are going to have a mechanism to determine minimum prices to ensure that farmers are protected from any kind of price manipulation.</blockquote>
Zimbabwe Tobacco Association chief executive officer, Mr Rodney Ambrose, said there was a need to restore the viability of the auction system to cushion farmers from all kinds of abuse by the merchants.
More: <a href="https://www.sundaymail.co.zw/timb-allays-fears-of-price-manipulation" rel="noopener noreferrer" target="_blank">The Sunday Mail</a>

Demise Of The Tobacco Auction System Trigger Fears

Zimbabwe has raked in US$64.4 million from the sale of 28.2 million kilograms of tobacco in 16 days compared with US$18.6m from the sale of 10.5 million kilograms in the same period last year.
The Herald, citing statistics released by the Tobacco Industry and Marketing Board (TIMB), said the bulk of the tobacco delivered came from the contract farmers.
Buyers offered the highest price of US$6.60/kg at the contract floors, while the highest price at the auction floors remained at US$4.99/kg.
Tobacco (10.5kg) that was sold in the same period last year constitute about 37% of the deliveries so far this year as 382 149 bales have since been laid and 369,862 sold as compared with 162,298 laid with 150,562 bales sold during the corresponding period last year.
Most farmers are now producing tobacco under contract farming. Under this arrangement, farmers are guaranteed a timely supply of inputs and, in some cases, funds to pay workers.
Last year’s tobacco sales season was delayed due to a standoff between the government and farmers over the pricing of the golden leaf.
Farmers were demanding to be paid in foreign currency saying their commodity was being sold in foreign currency adding that they need foreign currency for inputs.
More: <a href="https://www.iol.co.za/news/africa/zimbabwe-rakes-in-644-million-in-tobacco-sales-48529263">IOL</a>

Zimbabwe Gets US$64M From Tobacco Sales In 16 Days

Despite tobacco sales currently at 46 million kgs, the Tobacco Industry and Marketing Board (TIMB) remains convinced that tobacco deliveries could still surpass this year’s target of 240-260 million kilogrammes.
This year’s edition of the tobacco marketing season was mainly delayed by a stand-off between the government and the farmers over the pricing of the golden leaf. Farmers were demanding an increase in the price and they also wanted to be paid part of their proceeds in US$ arguing that the crop is sold in foreign currency. They also argued that they use foreign currency to buy their inputs.
The Herald reports that the highest price at the auction floors this season is US$4,65 per kilogramme while the lowest price has remained at US$0,20 per kilogrammes.
Last year during this period, 72 million kgs had already been sold. This year’s sales are still at least 46 million kilogrammes.
Speaking to the Herald, TIMB chief executive Emmanuel Matibiri said:
<blockquote>Obviously, the season was late in terms of the time of planting of the crop; that is reason number one and then reason number two is that the prevailing prices are discouraging farmers from bring more tobacco for sale.</blockquote>
Farmers were fuming in the past few weeks over the pricing. Some even threatened to withdraw their crop from the market and to shun growing the crop for good. Sales are reported to have slightly improved following the scrapping of the 2% tax on tobacco-related transactions.
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More: <a href="https://www.herald.co.zw/timb-still-hopeful-of-beating-tobacco-target/" rel="noopener noreferrer" target="_blank">The Herald</a>
<h3></h3>

TIMB Adamant Tobacco Sales Will Surpass This Year's Target

Zimbabwean farmers are expected to sell up to 240 million kg of tobacco this year, a 5 percent decrease from 2018 due to drought.
This was revealed by a Tobacco Industry and Marketing Board (TIMB) official who spoke to Reuters on condition of anonymity. TIMB data seen by Reuters shows tobacco exports have already earned $178 million since January, with South Africa and China the top two importers.
In an official circular on Wednesday, the RBZ said farmers would now be paid in the local transitional RTGS dollar currency, reversing a decision to pay them half their money in U.S. dollars. The biggest farmers’ group said it was studying the notice.
More: <a href="https://af.reuters.com/article/zimbabweNews/idAFL8N2175SB">Reuters</a>

Zimbabwe's Tobacco Output Set To Decrease By 5%

Tobacco is under threat after international buyers, Global Tobacco Cigarette Companies, resolved not to accept tobacco cured using coal citing environmental concerns. The Sustainable Tobacco Programme states that from 2020, Global Cigarette Companies will not buy tobacco cured using coal.
Tobacco Industry and Marketing Board public relations manager Isheunesu Moyo said that the regulatory board has since engaged in a reforestation programme to meet the requirements of the Global Tobacco Cigarette Companies. Said Moyo:
<blockquote>Confronted with this situation, it is imperative for the tobacco industry in Zimbabwe to adopt aggressive afforestation programmes in order to remain competitive and relevant to the Global Cigarette Industry. TIMB has mobilised $2 million from its own resources for planting of trees for curing tobacco. From this resource envelope the industry is targeting about 2 000 hectares.</blockquote>
TIMB said it has not utilised funds from the afforestation levy despite collecting more than  $3 million because it has not obtained Parliament approval.
More: <a href="http://www.herald.co.zw/zimbabwe-tobacco-under-threat/">Herald</a>

Zim Tobacco Under Threat After Buyers Resolve Not To Buy Tobacco Cured Using Coal

The Tobacco Industry and Markrting Board has revealed that tobacco sales have earned more than US$159 million so far. This is a 31 percent increase compared to the amount earned in the same period last year. More than 58.5 million tonnes of the golden leaf have been delivered so far. This is a 34 percent increase compared to the same period last year.
However, farmers have resorted to sleeping outside the auction floors as it is takiing days for their crop to be sold. The farmers are also having a difficult time in accessing their money. Statistics from the Tobacco Industry and Marketing Board show that new growers have increased from 9 674 in 2016 to 18 188 in 2017.
More: <a href="http://www.zbc.co.zw/2017/04/24/tobacco-rakes-in-over-us159-mln/">ZBC News</a>

Tobacco earns over US$159 million as new growers almost double

Yesterday, tobacco farmers at the Tobacco Sales Floors (TSF) staged a demonstration over failure by banks to allow them to withdraw $1 000 as had been agreed. Police had to be called in to restore order after some farmers shut the entrance into the auction floor in protest over the decision by banks to restrict them to $300 withdrawals.
Business at TSF was disrupted for an hour with farmers waving placards. The Herald reports that some of the placards were written “TIMB yaita huwori, hatikweretese fodya” and “We need our money”. Initially police came with baton sticks but had to return in anti-riot gear after realising the situation. Business resumed after banks started allowing farmers to withdraw $1000.
More: <a href="http://www.herald.co.zw/tobacco-farmers-stage-cash-demo-%e2%80%a2-banks-fail-to-meet-1-000-withdrawals-%e2%80%a2-police-called-in-to-restore-order/">Herald</a>

Police called in as Tobacco farmers stage demo at TSF after banks fail to allow them to withdraw $1 000

The Tobacco Industry and Marketing Board (TIMB) has expressed its readiness to open the 2017 tobacco marketing season early with all the three main auction floors and 19 contract buyers having been licenced to buy the golden leaf. <a href="http://www.pindula.co.zw/Reserve_Bank_of_Zimbabwe">The Reserve Bank</a> had already indicated that auction floors might open early this season with unconfirmed reports indicating that the 2017 tobacco marketing season might open in February unlike the usual month of April.
TIMB Chief Executive Officer Dr Andrew Matibiri expressed confidence that auction floors and contract buyers will be ready to open doors as soon as farmers are ready to sell their golden leaf. Although farmers have increased production this season, the hailstorm which hit some parts of the country is the major challenge threatening to adversely affect the expected bumper harvest.
More: <a href="http://www.zbc.co.zw/index.php/news-categories/agriculture/71950-2017-tobacco-selling-season-to-open-early">ZBC</a>

2017 tobacco season to expected to open early

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