eBusiness Weekly
Martin Kadzere
Zimbabwe expects production of its largest single foreign currency earner tobacco to fall this season as erratic rains in the eastern parts of the country affected output.
The country produced a record 253 million kilogrammes of tobacco last year, but poor rains badly affected the crop in most parts of Manicaland and Masholaland East provinces, the chief executive officer of Tobacco Industry and Marketing Board Andrew Matibiri told Business Weekly in interview yesterday.
Where climatic conditions were favourable, output and quality would be “much better.”
“The situation is so dire in Manicaland and Mashonaland East Provinces where the rainfall patterns were not so good and as a result we won’t get much as last year’s record crop but we will be over 200 million kg,” Matibiri said.
A crop assessment will be finalised this week to give the estimated tobacco output for this year, he added.
Tobacco is largely grown by small scale farmers in Zimbabwe, who are largely financed by private companies as they lack collateral for borrow money from banks.
About 80 percent is grown under contract farming schemes, according to the TIMB.
Registered farmers increased by 44 percent to 170 169 farmers from 118 142 for last year.
Of the 170 842 registered growers, 41 552 are new. Farmers last year delivered a record 252 million kilogrammes of flue cured tobacco worth $737,2 million. Matibiri said the TIMB is still consulting stakeholders on when the next season would start.
This season, farmers will retain 50 percent of their earnings in hard currency, from 30 percent the Reserve Bank of Zimbabwe initially announced in the Monetary Policy Statement.
Central bank governor, John Mangudya said the move was meant to stimulate production to tobacco and earn the country more badly needed forex.
Apart from tobacco, other main sources of Zimbabwe’s foreign currency are gold and cotton.
