Zimbabwe prices down

| May 12, 2017

Flue-cured tobacco prices in Zimbabwe are so far running at two percent below those of 2016, according to a story by Michael Tome for the Zimbabwe Daily.

The Tobacco Industry Marketing Board (TIMB) reported that after 36 days of sales, ‘at least’ 104 million kg of tobacco had been sold through both the contract and auction systems for US$293 million.

The average price of US$2.81 was down from US$2.87 in 2016.

Meanwhile, the TIMB said that daily deliveries of tobacco had increased to four million kg from three million kg earlier in the sales season.

In February, the Zimbabwe Farmers’ Union said it expected flue-cured tobacco prices to be ‘favorable’ this year.

The quality of the crop was said to be excellent and so grower prices, which were said by buyers to be based on quality, should be excellent also.

At that time, growers believed that prices ranging between $4.00 and $5.00 per kg would be favorable.

Such prices, they said, would allow them to break even and to continue producing flue-cured tobacco next season.

In 2015 and 2016, the average price paid to Zimbabwe’s flue-cured tobacco growers was about $2.93 per kg.

So far this year, Zimbabwe has earned US$214.7 million exporting 45.6 million kg of flue-cured tobacco at an average price of about US4.70.

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Category: Breaking News, Leaf

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