Zimbabwe Sees Tobacco Volumes Rise, While Prices Fall

Zimbabwe’s tobacco deliveries to auction and contract floors have surged 83% year on year, earning farmers nearly $200 million since the marketing season opened on March 4, according to the Tobacco Industry and Marketing Board. A total of 67.2 million kg of tobacco valued at $197.7 million has been sold so far, up from 38.8 million kg worth $133 million over the same period last year.

Despite the higher volumes, prices remain subdued, with the average price at $2.79/kg compared to $3.44/kg previously. Most of the crop — about 95% — has been sold through contract floors, with only 3.8 million kilograms sold at auction by self-financed farmers. The highest prices recorded this season were $5.75/kg on contract floors and $4.92/kg at auction, both below last year’s $6.30/kg peak.

The Zimbabwe Tobacco Growers Association said farmers are receiving payments on time as required under Statutory Instrument 77 of 2022, though high production costs and multiple levies continue to squeeze earnings.

By New Zimbabwe.