eBusiness Weekly
Business Writer
Zimbabwe’s tobacco exports have seen a dramatic surge in the first six weeks of 2024, reaching US$351 million compared to just US$106 million during the same period last year, according to statistics released by the Tobacco Industry and Marketing Board (TIMB).
This represents a staggering increase of over 230 percent.
The TIMB report indicates that the significant growth is driven by both increased volume and higher prices.
About 52 million kg of tobacco were exported in the first six weeks in 2024, compared to only 21.5 million kg in the same period last year.
This represents a more than two-fold increase in volume.
The average price per kilogramme has risen to US$6,74, up from US$4,92 last year.
The Far East remains the major destination for Zimbabwean tobacco, with 38,8 million kg shipped to the region in the first half of 2024, representing over 70 percent of the total exports.
Other notable markets include Europe and Africa.
Despite unfavourable weather conditions during the early start of the 2023/24 agricultural season, Zimbabwe is expected to produce a “reasonable” 265 million kg.
The 2024 tobacco marketing season opens on March 13.
A second pre-season crop assessment estimates a yield of 265 million kilogrammes, which some analysts consider “respectable” considering the prolonged dry conditions brought on by El Niño.
Last year, Zimbabwe produced a record crop of nearly 297 million kg largely due to good weather conditions as well as improved agronomy support by the contractors.
Tobacco remains the country’s second-largest foreign currency earner after gold, primarily cultivated by small-scale farmers who were allocated land under the land reform programme.
Previously seen as technically challenging to small-scale growers, tobacco production has also been embraced by many communal farmers, significantly boosting their presence in the sector.
Last year, Zimbabwe exported 236 million kg of tobacco, generating US$1,2 billion.
Under the Tobacco Value Chain Transformation Plan–approved by the Cabinet in 2021-the Government is targeting to increase the output to 300 million kg by 2025.
The plan also seeks to raise localisation of tobacco funding to 70 percent, increase the level of value addition and boost cigarette production to 30 percent from 2 percent.
