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Freight & Trading Weekly

More farmers planting tobacco

25 Jan 2019 - by Ed Richardson
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Small-scale farmers in Zimbabwe are switching to tobacco after a record year in 2017 when the country produced 252.2 million kilograms of the crop. According to the Zimbabwean Tobacco Industry and Marketing Board (TIMB), the country earned close to US$892 million through the export of 184.1 million kg of tobacco in 2018. The remainder of the crop is used for the manufacture of cigarettes in Zimbabwe. FTW found during its recent annual visit to Mozambique that there had been a big increase in volumes of Zimbabwean tobacco through both Beira and Maputo. Producer prices may, however, come under pressure as the registration of tobacco growers for the 2018-19 season increased by 65% from the 98 233 farmers in the previous season to 162 028, according to TIMB statistics. The board reports that the average price for the 2018 crop was US$4.85 a kg, compared to US$4.96 a kg in 2017, when 182.4 million kg was exported. According to an article in the Herald newspaper, the increase in registration has largely been influenced by the need for farmers to obtain individual growers’ numbers so that they benefit from the introduction of foreign currency incentives. The use of plastic money has also made it difficult for the farmers to share their money after selling their crop as they are no longer paid in cash. According to TIMB, China is the main importer of Zimbabwean flue-cured tobacco. In 2018 it imported 59.1 million kg, which is a little less than the 60.8 million kg in 2017. South African producers spent US$100.8 million importing 32.2 million kg of tobacco at an average price of $3.13 a kg, which is up from the 2017 figures of $78.1 million on 24.2 million kg. The next-biggest importer is Belgium, which in 2018 bought 17.6 million kg of tobacco worth $58.1 million at an average price of $3.30 a kg

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