STAFF REPORTER

Zimbabwe has reported record-high tobacco sales as the southern African nation reclaims its position as one of the top producers worldwide.

Farmers have delivered more than 260 million kgs of tobacco so far, this selling season, surpassing the previous record of 253 million kgs achieved in 2020, according to official data obtained from the Tobacco Industry Marketing Board (TIMB).

As a result, Zimbabwe’s tobacco export revenues increased to over US$600 million in the year to date from over US$400 million realized in the previous comparative period.

“Farmers delivered  more than 260 million kgs  so far in the selling season,  from the previous all time high of 253 million kgs achieved in 2020,” TIMB said.

A sizable portion of Zimbabwe’s tobacco exports is exported  to Asian nations, especially China, followed by the European Union.

However, according to farmers unions, Zimbabwean farmers are “heavily indebted” and receive “minimal” benefits.

They claimed that the farmers are not reaping the full benefits of Zimbabwe’s tobacco boom, in largely because of a contract system that forces them to take out unfavorable loans from merchants and contractors.

The contractors lend seeds, fertilizer, food, and cash to the Zimbabwean farmers as part of the contract system. Although a regulatory body in Zimbabwe does offer a price guide, the farmers are required to sell their tobacco crop to those companies or their agents, who typically set the price.

The contract system provides funding for about 95% of Zimbabwe’s tobacco crop.

While production is rising, farmers complain that their financial situation isn’t getting better and that the contract system is a debt trap because sometimes prices fall, or they receive fewer inputs while still having to make the same loan payments. Due to their failure to make payments, farmers are now losing prized possessions like livestock.

TIMB anticipates tobacco prices to increase due to the high demand.

“For Zimbabwe, all the above dynamics point to much firmer prices this season. While there may be minimal upward movement in top leaf prices, especially China grades, there will be strong demand for the middle and bottom plant positions,” TIMB chairman Patrick Devenish said.

According to TIMB statistics, 148,527 farmers grew tobacco this year, up from 122,841 farmers the previous year.

Hectarage also increased to 117, 928 hectares from 110,155.