Staff Reporter
The Tobacco Industry and Marketing Board (TIMB) is set to implement a new pricing system for contract tobacco sales in the upcoming selling season.
The system aims to establish an average minimum price

by considering auction and contract sales, a move expected to benefit Zimbabwean tobacco farmers.
In an interview with the media recently, TIMB acting chief executive, Emmanuel Matsvaire, confirmed the development stating that the new model would stabilise and potentially improve tobacco prices throughout the season.
“The TIMB’s new matrix seeks to address the imbalance that previously existed.
“Auction floors will continue to operate using a competitive bidding method. In cases where a farmer disputes a price offer, they will have the right to reject the sale and seek another buyer,” Matsvaire said.
Another significant change is the requirement for third-party buyers, known as surrogate companies, to offer competitive prices that align with those set by major tobacco merchants. Previously, these smaller buyers often paid lower prices, further disadvantaging farmers.
The new pricing system is also designed to protect farmers from potential price drops caused by increased global tobacco production, particularly from Brazil and India. While last year’s global market faced shortages that drove up prices, this year’s market is expected to be more selective, offering lower premiums for lower-quality tobacco.
To help farmers maximise their earnings, TIMB is emphasising the need for proper tobacco grading to avoid price reductions due to mixed-quality bales.
Agricultural economist, Takesure Makora, praised the new pricing model, calling it a significant step forward.
“By determining contract prices based on the industry average, this system ensures fair compensation for farmers,” he said.
To formalise the new approach, contractors will be required to sign an addendum to their memorandum of understanding or compliance framework, committing to the revised pricing structure.
The pricing overhaul is part of TIMB’s broader strategy to strengthen Zimbabwe’s tobacco sector.
Last season, the country achieved a record 297 million kilograms of tobacco production, thanks to initiatives, such as the “simplify and accelerate” concept and improved stock tracking.
TIMB has also reported a 26 percent revenue increase, driven by measures to curb corruption and fraudulent activities within the stop-order system.
Additionally, the board has successfully intervened in coal pricing, capping costs at US$200 per tonne—down from US$300—to ease farmers’ production expenses.
Side marketing, a practice that undermines contract agreements, has been reduced to less than 5 percent through increased regulatory compliance.
Meanwhile, the 2025 tobacco selling season is set to commence on March 5, with industry projections estimating a harvest between of 280 million kg and 300 million kg.
In 2023, Zimbabwe achieved a record 297 million kg, just shy of its 300 million kg target. However, last year’s El Niño-induced drought reduced output to 231 million kg.
With the introduction of a fairer pricing system, improved market access, and increased regulatory oversight, TIMB is laying the groundwork for a stronger and more sustainable future for Zimbabwe’s tobacco industry.