HARARE – Zimbabwe’s tobacco production is estimated to take a dip because of the low rainfall experienced throughout the country. However government estimates are below industry projections that national tobacco volumes will be 10-15% below the 2020/2021 season.
Tobacco production is a key economic activity for small scale farmers. The crop is mainly produced through the contract system where buyers provide the farmers with the inputs for tobacco farming.
Apart from the fact that tobacco was grown under difficult weather characterised by delayed rains, fertilizer shortages had an adverse impact on the farming season.
On the other hand, late onset of the rainy season negatively impacted the uptake of agricultural inputs. Whilst a good rainy season had been forecast, the outturn was erratic, with some parts of the country being negatively impacted by the passage of the Tropical Storm Ana weather system.
“Tobacco production is estimated to decrease by 8% to 183 725 metric tonnes from 200 245 metric tonnes in the 2020/2021 season,” according to the latest 2021/22 Second Round Crop and Livestock Assessment Report.
Literally it means that most farmers did not get the expected yields there for it is likely that those in credit will not be able to settle their loans leaving them in credit. On the other hand, this publication suggests a need for farmer driven organizations such as cooperatives, which can level the playing field for the small-scale tobacco producers.
These organizations can coordinate producers and negotiate better terms with contractors. They can also reduce the high risks and costs associated with directly lending to fragmented small scale producers.
This would provide small scale producers more capacity to operate independently and position them to capture more value in the tobacco value chain. It would also provide a better foundation for the small-scale producers to viably and sustainably exploit derivatives.
The first round crop and livestock survey for the 2021-2022 season had revealed that the southern African nation’s tobacco hectarage for the current season declined by 11%.tobacco is Zimbabwe's second foreign currency earner after gold, with China and South Africa being the major buyers of the golden leaf. Other top buyers of flue-cured tobacco from Zimbabwe are the United Arab Emirates, Indonesia and Belgium.
Tobacco marketing season commenced on 30 March 2022, a week earlier than in the previous year. The first bale (tobacco) was sold at US$4.20 a kilogram, which is marginally lower than US$4.30 a kilogram in 2021.
At least 52.49 million kilograms of tobacco worth US$154.56 million have been sold so far at auction and contract floors in the country since the start of the selling season, according to the Tobacco Industry and Marketing Board. Last year, the country sold 186.6 million kg of tobacco leaf valued at 515.9 million U.S. dollars during the 2021
marketing season, up 16.8 percent in volume and 31 percent in value over the 2020 sales.
While the country is the largest producer of tobacco in Africa, targets to improve value addition from the current 2% to at least 30% by 2023. Also it will localise the financing of tobacco production, with the government committed to put in some seed money of at least US$60 million.
Through the tobacco transformation plan, the country wants to create a US$5 billion tobacco industry by 2025. Under this plan, tobacco production will be improved to 300 million kilograms of good quality styles desired by international markets.
