Dual sales system set to stay

| August 15, 2016

Zimbabwe’s flue-cured tobacco marketing system, which employs both auction and contract sales, is to be retained even though contract sales now account for about 80 percent of the crop’s volume.

The contract system was introduced 11 years ago to boost output, which had tumbled in the wake of the fast-track land reforms that decimated agriculture production at the turn of the Millennium. Before that, all flue-cured was sold by auction.

According to a story in The Standard, the CEO of the Tobacco Industry and Marketing Board (TIMB), Andrew Matibiri, has said that there is no reason to do away with the dual marketing system.

“More tobacco is being grown under contract schemes because of the funding,” Matibiri was quoted as saying.

“Financial inclusion is meant to benefit non-contracted farmers who have a good track record.

“When non-contracted tobacco farmers start receiving funding from financial institutions, volumes will increase at the auction floors,” he added.

Figures from the TIMB showed that 159.5 million kg had been sold under the contract system during the 2016 marketing season, while 35.7 million kg had been sold at the three auction floors.

Category: Breaking News

Comments are closed.