Zimbabwe’s growers suffering effects of low prices

| June 12, 2015

Zimbabwe’s flue-cured tobacco growers are still suffering from the effects of low prices well into the sales season, according to a story in the Daily News relayed by the TMA.

Figures issued by the Tobacco Industry and Marketing Board (TIMB) indicate that, so far, growers have sold 145.5 million kg of flue-cured leaf at an average price of US$2.94 per kg and earned nearly US$430 million. The leaf marketing season started on March 4.

Compared with figures recorded during the corresponding period of the 2014 marketing season, the sales volume is down by 7.57 percent and the value of those sales is down by 14.00 percent.

Despite the fact that cigarette prices seem always to trend upwards; the amount per kg being paid to Zimbabwe’s growers is trending down.

The TIMB said growers had sold 105.4 million kg of leaf by contract and 40 million kg over auction platforms.

Of the tobacco sold at auction, about 19 million kg was sold over the Tobacco Sales Floors, about 12 million kg was sold over the Boka Tobacco Auction Floors and about eight million kg over the Premier Tobacco Floors.

Category: Breaking News

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