• Fri. Apr 19th, 2024

Zimbabwe sells first tobacco bale for $4.92 per Kilo

ByETimes

Mar 13, 2024 #TIMB

By Stephen Chandisareva

HARARE – Zimbabwe’s tobacco industry has started off the 2024 marketing season on a positive note, with the first bale fetching an impressive US$4.92 per kilogram. This marks a 13.10% increase from the US$4.35 per kilogram that was recorded during the opening of the 2023 season.
Despite facing challenges such as an El Nino induced drought, which affected crop yields in some regions, Zimbabwe’s tobacco farmers have managed to produce high-quality tobacco that is in demand on the international market.
Indications suggest that 265 million kilograms will be sold this season and the country will earn about US$750 million from the golden leaf.

Demand is very strong, and we expect prices to be higher. Brazil, one of the biggest buyers of Zimbabwe tobacco, has poor quality as it has been severely affected by adverse weather. Tobacco farmers have had to cope with excessive rains this season, causing plant roots to drown and leaves to develop spots. So we expect to have strong demand for the crop. Early estimates show that the country is going to earn about US$750 million from the crop. Devenish
The increase in prices is a testament to the hard work and dedication of these farmers, who have persevered through difficult conditions to produce a valuable crop.
The higher prices being paid for Zimbabwean tobacco are good news for the country’s economy, as tobacco remains one of its most important agricultural exports. The increased revenue generated from higher prices will benefit not only the farmers themselves but also the wider economy, contributing to economic growth and development.
The success of Zimbabwe’s tobacco industry in the face of challenges such as drought is a testament to the resilience and adaptability of its farmers. By continuing to invest in sustainable farming practices and innovative technologies, Zimbabwe’s tobacco industry can continue to thrive and contribute positively to the country’s economy.
As we look ahead to the rest of the 2024 marketing season, there is optimism that prices will remain strong and that Zimbabwe’s tobacco industry will continue to perform well. With continued support from government and stakeholders, there is no doubt that Zimbabwe can build on this early success and further strengthen its position as a leading player in the global tobacco market.
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.

By ETimes

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