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The opening bale of tobacco has been sold at US$4.30/kg which is higher than the US$4 in 2020 and is lower than US$4.50 of 2019.
The tobacco selling season commenced this Wednesday and the farmers expect higher prices this season due to improved quality.
Contract sales open tomorrow.
In a recent statement, the Reserve Bank of Zimbabwe (RBZ) recently <a href="https://news.pindula.co.zw/2021/03/08/tobacco-farmers-to-retain-60-per-cent-forex-earnings/" target="_blank" rel="noopener">announced that tobacco growers will be paid 60 per cent of their earnings in foreign currency</a> while the remaining 40 per cent will be paid in local currency using the auction rate.
Farmers were pushing for up to 80 per cent foreign currency retention from last year’s 50-50.
Some farmers are, however, welcomed the 60% retention describing it as &#8220;a positive development, on the ground farmers will continue increasing their tobacco production.&#8221;
Before the review, some farmers were reportedly contemplating ditching the golden leaf over the pricing model which they said was not commensurate with the effort they would have put.
Tobacco Industry Marketing Board (TIMB), chief executive officer Dr Andrew Matibiri recently <a href="https://news.pindula.co.zw/2021/01/03/demise-of-the-tobacco-auction-system-trigger-fears/">said many farmers will be de-contracted and will be free to sell through the auction system this season.</a>
He expressed hope that would provide reasonable volumes to prop up the auction.
There were fears that with the demise of the auction system, farmers would be vulnerable hence the need to restore the viability of the auction system to cushion farmers from all kinds of abuse by the merchants.
Dr Matibiri also said if there were no enough volumes to prop up the auction, they were going to have &#8220;a mechanism to determine minimum prices to ensure that farmers are protected from any kind of price manipulation.&#8221;
More: <a href="https://news.pindula.co.zw/">Pindula News;</a> <a href="https://twitter.com/happ_zenge/status/1379681447485837312">Happi Zenge-Manyere</a>

Pindula News

Opening Tobacco Bale Sold At US$4.30/kg

The new tobacco selling season starts this Wednesday and the opening ceremony will be held this morning at the Tobacco Sales Floor in Harare. Contract sales open tomorrow.
The Tobacco Industry and Marketing Board (TIMB) has licensed the three traditional auction floors in Harare, namely Boka Tobacco Floors, Tobacco Sales Floor and Premier Tobacco Floors.
The Zimbabwe Tobacco Association (ZTA) said that though some buyers may reject disease-affected and thinner crops, demand for tobacco remains high.
The Reserve Bank of Zimbabwe (RBZ) recently <a href="https://news.pindula.co.zw/2021/03/08/tobacco-farmers-to-retain-60-per-cent-forex-earnings/" target="_blank" rel="noopener">announced that tobacco growers will be paid 60 per cent of their earnings in foreign currency.</a>
The remaining 40 per cent will be paid in local currency using the auction rate.
This season farmers were pushing for up to 80 per cent foreign currency retention from last year’s 50-50.
Meanwhile, TIMB has put in regulations that merchants must abide by before they are registered.
About 200 million kilogrammes of tobacco are expected to be delivered to the auction floors this season, up from 184 million kilogrammes sold by farmers last season.
<h4>More: <a href="https://www.herald.co.zw/tobacco-selling-season-kicks-off-today/" target="_blank" rel="noopener">The Herald</a></h4>

Tobacco Selling Season Commences Today

Some tobacco farmers have welcomed the review of payment terms which would see them receive sixty percent (60%) of the <a href="https://news.pindula.co.zw/2019/07/24/forex-retention-thresholds-to-be-maintained-rbz/">total earnings from the sale of their product</a> in forex.
Farmers at Glamorgan in Bindura who spoke to ZBC News said the move was a positive one. Said some of the farmers:
<blockquote>We are expecting contractors to buy our crop fairly and we praise government for the 60% forex and 40 percent RTGS which will allow us to purchase important utilities and be able to go back into the field.
The 60% retention is a positive development, on the ground farmers will continue increasing their tobacco production.</blockquote>
Before the review, some farmers were reportedly contemplating ditching the golden leaf over the pricing model which they said was not commensurate with the effort they would have put.
Previously, delays in payment and the payment models created a standoff between the government and farmers or at least delayed the selling of the crop at the auction floors.
More: <a href="https://www.zbcnews.co.zw/tobacco-farmers-upbeat-following-forex-retention-review/">ZBC News</a>

Tobacco Farmers Speak On 60% Forex Retention

Tobacco farmers will be paid 60 per cent of their proceeds in foreign currency, with 40 per cent being in local currency.
Last year farmers were paid 50 per cent of their proceeds in US dollars with the other 50 per cent being in Zimbabwe dollars.
Lands, Agriculture, Fisheries, Water and Rural Resettlement Minister, Anxious Masuka, said last week said the 2021 tobacco selling season will start soon.
Masuka also said the Ministry was engaging the Reserve Bank of Zimbabwe (RBZ) and farmers representatives to ensure that everything runs smoothly.
Responding to questions in Parliament last week, Masuka said:
<blockquote>The opening of tobacco auctions is coming very soon and we are busy engaging with the buyers together with the Reserve Bank and farmers representatives who have submitted areas they would want to be improved from last year.
The Reserve Bank has put in measures to the effect that there is going to be the same treatment to everyone who is exporting produce so that tobacco farmers are happy because they are going to get 60 per cent of the US dollar component.
We are busy ensuring that the two come to an agreement before the opening of the tobacco auction floors.</blockquote>
In 2020, tobacco farmers were not happy after the RBZ insisted on paying for their crop using the official exchange rate of US$1: ZWL$25, which was prevailing at the time.
Currently, the official exchange rate is at US$1:Z$83 but far below the alternative exchange rate of US$1:Z$120.
However, farmers want to be paid all their proceeds in foreign currency because the majority of their inputs are now being sold in US dollars
<h4>More: <a href="https://www.chronicle.co.zw/tobacco-farmers-to-retain-forex-earnings/" target="_blank" rel="noopener">Chronicle</a></h4>

Tobacco Farmers To Retain 60 Per Cent Forex Earnings

The opening of the 2020 tobacco marketing season which was scheduled for 20 April, has been postponed to a date yet to be finalised, a government official has said.
Lands, Agriculture, Water, Climate and Rural Resettlement Deputy Minister Douglas Karoro revealed that the postponement was done to allow stakeholders to devise mechanisms to sell the crop in a way that reduces the spread of the coronavirus.
Addressing stakeholders in the tobacco sector at an online mock sale of the crop held at Northern Tobacco Auction Floors on Monday, Karoro said:
<blockquote>I know the people out there want to know the exact date of the start of the marketing season.
This is part of the assessments that we have done and we are going to inform our colleagues and the minister so that he also prepares a statement for onward transmission to the President and I am sure if we are happy here with these preparations, then the minister and the President will also be happy and they will guide us accordingly on the final date.</blockquote>
The online mock sale of tobacco was done to show stakeholders how farmers can sell the crop without being physically present on the floors.
Co-Deputy Minister in the Ministry of Lands, Agriculture, Water, Climate and Rural Resettlement, Vangelis Haritatos urged farmers to consider selling their tobacco online.
Speaking about the decentralisation of tobacco auction floors, Northern Tobacco chief executive Glen Youngs said the idea is a noble one. However, it will be difficult to implement this season due to limited space in other areas outside of Harare.
<h4>More: <a href="https://www.herald.co.zw/opening-of-tobacco-sales-floors-put-on-hold/" target="_blank" rel="noopener noreferrer">The Herald</a></h4>

Opening Of The 2020 Tobacco Marketing Season Suspended

Farmers’ union representatives have called upon the government to be prioritised in the provision of fuel as they were spending production hours in queues like any other motorist.
Zimbabwe Farmers Union (ZFU) president Wonder Chabikwa told The Herald that ignoring farmers when it comes to fuel allocation is akin to killing the hen that lays the golden egg. He said:
<blockquote>Sixty per cent of the raw materials that power the manufacturing sector come from agriculture. In the past, farmers would get special fuel-supplying facilities and would buy it at wholesale price, but now we are being made to queue for long hours just like any other motorist and this is adversely affecting production.
We should not reinvent the wheel and we should not kill the hen that lays the golden egg. Tobacco farmers are the most affected by the prevailing fuel shortages. Those with an irrigated crop are now busy harvesting. There is a lot of trailer work involved at this crucial stage and this requires a lot of fuel as tobacco has to be transported from the fields to curing barns and then to the auction floors.</blockquote>
Meanwhile, Zimbabwe Commercial Farmers Union president Shadreck Makombe said farmers should be allowed to access fuel directly from the National Oil Infrastructure Company (NOIC).
<h4>More: <a href="https://www.herald.co.zw/rbz-tobacco-farmers-iron-out-differences/" target="_blank" rel="noopener noreferrer">The Herald</a></h4>

Farmers Accuse Govt Of 'Killing The Hen That Lays The Golden Egg'

The Zimbabwe Republic Police (ZRP) has advised tobacco farmers to avoid travelling at night as they become vulnerable to robbers.
There has been a rise in reported cases of robberies targeting the farmers, with gun-toting robbers getting away with bales of tobacco.
National police spokesperson Assistant Commissioner Paul Nyathi, on Wednesday, said that in one such incident, farmers were robbed of their tobacco around 3 AM. He said:
<blockquote>On June 6, three other complainants were travelling in a Mazda Bongo with 14 tobacco bales from Karoi at around 3 am.
At the intersection of Rotten Row and Coventry Road, they discovered that the tent covering the bales had been tampered with.</blockquote>
When the farmers stopped to check, they were confronted by a group of seven men, armed with iron bars.
The men offloaded seven bales and loaded them into their getaway vehicle and drove away.
Reports indicate that over the past few years, farmers have lost tobacco worth thousands of dollars after being robbed on their way to auction floors.
<h4>More: <a href="https://www.herald.co.zw/police-warn-tobacco-farmers/" target="_blank" rel="noopener noreferrer">The Herald</a></h4>

Tobacco Farmers Advised To Shun Night Travel

https://youtu.be/GjA4Rxra5vM
The price of tobacco on the auction floors in April 2019 has frustrated many new farmers in Zimbabwe, who have vowed to take their tobacco to their farms.
Said the woman in the video:
<blockquote>We clearly now live in slavery, farming tobacco. A bag of fertiliser is $120 but you buy our tobacco for R5 (generally equated to US 50 cents in Zimbabwe). We will not bring any more tobacco here [to the auction floors]. We&#8217;ll take our crop home. Even the tobacco we had brough here, we want to take it back. The buyers can keep their money.</blockquote>
<h3>Related:</h3>
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<h4><a href="https://news.pindula.co.zw/2019/04/25/watch-disgruntled-tobacco-farmers-explain-their-plights/" rel="bookmark">WATCH: Disgruntled Tobacco Farmers Explain Their Plights</a></h4>
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<h4><a href="https://news.pindula.co.zw/2019/04/24/pictures-us-ambassador-brian-nichols-tours-tobacco-auction-floors/" rel="bookmark">PICTURES: US Ambassador Brian Nichols Tours Tobacco Auction Floors</a></h4>
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<h4><a href="https://news.pindula.co.zw/2019/04/23/tobacco-farmers-find-opening-nostro-accounts-too-complicated/" rel="bookmark">Tobacco Farmers Find Opening Nostro Accounts Too Complicated</a></h4>
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Desperate Woman Decries Tobacco Prices, Vows To Withdraw Crop

Zimbabwe Congress of Trade Unions (ZCTU) president, Peter Mutasa, has bemoaned the payment methods adopted by the Reserve Bank of Zimbabwe (RBZ) for tobacco farmers.
The RBZ announced on Tuesday that farmers will receive payment for their tobacco in RTGS currency, rather than the 50% US dollars it had promised them initially.
Mutasa said that there will be no development in the country as long as it did not reward the producers;
<blockquote>There will be no development or economic progress in a country which does not reward those who produce (workers). 
Farmers must be paid in USD coz tobacco is exported. Farmers paid for the inputs in USD and will lose if they are paid in RTGS.</blockquote>
Framers have been angered by the decision and have vowed to withhold their produce until they are paid in US dollars.
<h3>Related:</h3>
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<h3><a href="https://news.pindula.co.zw/2019/03/21/rbz-dupes-tobacco-farmers-as-it-suddenly-changes-payment-method/" target="_blank" rel="noopener">RBZ Dupes Tobacco Farmers As It Suddenly Changes Payment Method</a></h3>
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<h3><a href="https://news.pindula.co.zw/2019/03/20/zimbabwes-tobacco-output-set-to-decrease-by-5/" target="_blank" rel="noopener">Zimbabwe’s Tobacco Output Set To Decrease By 5%</a></h3>
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Pay Tobacco Farmers In US Dollars - ZCTU

Business and economic analyst, Victor Bhoroma said Zimbabwe is losing billions annually on account of exporting raw tobacco.
Bhoroma said Zimbabwe can make more money exporting cigarettes than unprocessed tobacco. Said Bhoroma:
<blockquote>The average export price for raw tobacco from Zimbabwe was $4.85/kg in 2018 while the average price for cigarettes was $32/kg. By exporting the same amount of kgs (after factoring in weight losses inmanufacturing), Zimbabwe could have realized $5.8 billion in one year. Zimbabwe exports raw tobacco to China, South Africa, UK, UAE, Belgium, New Zealand and Turkey which proceed to manufacture billions of cigarette sticks and export them at higher values under renowned brand names such as Marlboro, Camel, Davidoff, Newport and Dunhill.</blockquote>
More: <a href="https://www.263chat.com/raw-tobacco-exports-costs-zim-billions/">263Chat</a>

Zimbabwe Losing Billions As It Exports Unprocessed Tobacco

Reserve Bank of Zimbabwe (RBZ) governor John Mangudya said Zimbabwe&#8217;s 2019 tobacco marketing season will open on March 20 with growers retaining 50 percent of their net export proceeds.
Mangudya said this when he appeared before the parliamentary committee on public accounts on Monday. He said the RBZ and farmers will hold further discussions on the period that farmers should keep their retained forex earnings after the central bank last month gave the exporters only 30 days after which the unused money will be put on the market. He said the tobacco farmers had asked for the retention period to be extended to between 90 and 180 days.
More: <a href="http://www.xinhuanet.com/english/2019-03/11/c_137886680.htm">Xinhua</a>
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2019 Tobacco Marketing Season Opens Next Week

Farmers in Hurungwe have implicated the Tobacco Industry and Marketing Board of working hand in glove with contracting companies to fleece them.
Reports indicate that farmers have been contracted by certain companies on the understanding they will get inputs from the contractors. However, the farmers never get the inputs but are instead forced to sell their tobacco to the contracting companies since they would have been given growers&#8217; numbers.
The affected farmers are convinced that this can never happen without the involvement of TIMB officials.
A Mail and Telegraph source had this to say
<blockquote>Some TIMB employees are involved in corrupt activities at the head office where they give grower numbers to tobacco contractors without the farmer&#8217;s knowledge. Farmers will only know in some instances when they want to sell their tobacco on the floors that he is registered with a certain company.
Some of these companies have a habit of registering farmers promising them to give them inputs and money for labour but renege on these promises.</blockquote>
On its part, the TIMB strenuously denied the allegations. In an interview with the Mail and Telegraph, communications manager Ishemunyoro Moyo said
<blockquote>Different individuals have different rights in the system. For instance, they are able to check if a farmer is contracted by another company as a farmer should not be contracted by more than one company. These allegations are unfortunate as it is based on speculation.
Of late some companies have been fined and licenses have been cancelled. TIMB is concerned with integrity and does not tolerate any form of corruption. There are no sacred cows and farmers should report any form of ill-treatment.
&#8230; We de-contract any farmer who decides to part ways with a contractor as long as they do not owe the company anything. During contracting, we require a form signed by the farmer and likewise, during de-contracting, we require a form signed by the contractor.
This is in an effort to protect both the farmer and the contractor. In the past, a contractor could simply give us a list of their farmers and we would contact them. 
But because farmers would complain that they were contracted without their knowledge, we now insist on contractors giving us forms signed by the farmers. This now means for a farmer to be contracted without consent is criminal and involves forgery.</blockquote>
<h2>Related:</h2>
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<h3><a href="https://news.pindula.co.zw/2018/05/18/contractors-accused-of-cheating-tobacco-farmers-of-at-least-3-million/">Contractors Accused Of Cheating Tobacco Farmers Of At Least $3 Million</a></h3>
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<h3>More: <a href="https://mailandtelegraph.com/2018/12/15/rot-in-tobacco-industry-exposed/">Mail and Telegraph</a></h3>

TIMB, Contractors Accused Of Defrauding Hurungwe Tobacco Farmers

The Tobacco Industry and Marketing Board (TIMB) has distributed inputs to over 2000 tobacco farmers. The inputs are part of the Reserve Bank of Zimbabwe input scheme which was increased to $70 million from $28 million last year.
TIMB spokesperson, Isheunesu Moyo told NewsDay,
<blockquote>We have started rolling out the process and distribution is taking place in the four major tobacco farming provinces which are Mashonaland East, Central and West and Manicaland.
At least an area covering 2 000 hectares and 800 farmers have received inputs and we are using the funds from the RBZ (Reserve Bank of Zimbabwe), which was increased from $28 million last season to provide inputs to farmers, who are not contracted.</blockquote>
More: <a href="https://www.newsday.co.zw/2018/06/timb-dishes-inputs-to-farmers/" target="_blank" rel="noopener">NewsDay</a>

TIMB Distributes Inputs To Tobacco Farmers

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Contractor buyers are reported to have prejudiced tobacco farmers of between $3 million to $4 million by underpaying them for the tobacco. Some of the companies which have been accused of underpaying farmers include Ethical Leaf Tobacco, Boost Africa and Agritrade Leaf Tobacco. The Zimbabwe Farmers Union has since taken the case to its lawyers. The executive director of ZFU Paul Zakariya said,
<blockquote>I can confirm a prejudice was established but I cannot go into details because the lawyers are deciding on how we should proceed with the matter.</blockquote>
Another official who spoke to Business Weekly said,
<blockquote>As we speak there are serious negotiations going on as to how much money could be compensated to the affected farmers but preliminary calculations are suggesting that an amount of between $3 million and $4 million&#8230;But they have been given two weeks to pay of the lawyers will pursue the matter at courts.</blockquote>
More: <a href="http://ebusinessweekly.co.zw/legal-battle-looms-as-tobacco-farmers-fleeced/" target="_blank" rel="noopener">Business Weekly</a>
&nbsp;

Contractors Accused Of Cheating Tobacco Farmers Of At Least $3 Million

The Tobacco Industry and Marketing Board (TIMB) has revealed that Zimbabwe&#8217;s tobacco sales went down by 7.3 percent to 185.6 million kilograms after heavy rains affected the output. Zimbabwe was targeting 215 million kilograms. The country earned $551 million from tobacco sales, down from $589.3 million last year.
More: <a href="http://www.newzimbabwe.com/business-38718-Farmers+paid+$551m+but+tobacco+sales+down/business.aspx">New Zimbabwe</a>
&nbsp;

Tobacco sales go down after heavy rains

Farmers waiting for Tobacco Auction Floors to Open
&nbsp;
The tobacco selling season for Zimbabwe has started today, something the government and the Reserve Bank of Zimbabwe will be happy about as the sale of tobacco is expected to generate much needed foreign currency. Last year, tobacco earned $1 billion dollars in export revenue receipts ahead of platinum and gold. The floors will be opened today for general sellers while contract farmers will start selling tomorrow.
Th highest selling price as of 11am was $4.65/kg with $3.60 being the lowest. 
Picture credit: <a href="https://twitter.com/harumutasa">Haru Mutasa</a>

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