This year’s tobacco deliveries in Zimbabwe are almost 50 per cent ahead of last year’s at the same stage of the marketing season, according to statistics from the Tobacco Industry and Marketing Board (TIMB), reports The Herald.
A combination of better prices and decentralisation of contract floors is one of the major reasons for the massive jump in deliveries this year, industry officials said.
By 17 May, deliveries had reached about 196 million kg, 48.4 per cent more than in 2022 at this point of the marketing season. The value of tobacco delivered was USD 588,9 million, up from USD 396 million in the same period last year, including USD 46.4 million via auction and USD 545 through contract. The average price, according to the statistics, was USD 3 per kg, slightly up by 0.26 per cent from the previous year.
Tobacco sales through the auction system have increased significantly, accounting for about 8 per cent of total deliveries to date. Last selling season, tobacco sold through auctions accounted for 3 per cent of total sales.
This year, tobacco production is expected to increase to 230 million kg compared to about 200 million kg last year.