Staff Reporter
Tobacco Industry Marketing Board (TIMB) says that tobacco output for this season has surpassed the targeted 195 million prediction, reaching 202.8 million kilograms, last week.
According to the tobacco board’s latest update, the golden leaf has so far generated US$565 million on the 86th day of marketing, ahead of US$448.4 million that was obtained, the same period last year, 2020.
TIMB spokesperson, Chelesani Moyo, indicated that there had been an 11 percent growth in average prices, which then boosted this season’s earnings.
“This season, the average price was 11% firmer than the average price offered last year.
“Plans for the 2021/2022 season are even more promising due to the local funding which will soon be availed by AFC Holdings, as it will go a long way in boosting tobacco production through local funds,” he said.
TIMB is likely to get capital injection from the rebranded Agricultural Finance Corporation (AFC) Holdings, which already presides over many other agriculture state-run financial services firms.
Output was also reported to have been boosted by a 6.1 percent increase in area under tobacco, which grew to 125 176 hectares this season, compared to 117 976 hectares during the 2019/2020 agricultural season.
This season’s average auction floor price was US$2.80 per kg, compared to the US$2.78 per kg, which was prevailing at the contract floors.
The TIMB data indicated that the volume of tobacco sold through the auction system continued to plunge.
It reported that 12.5 million kg of tobacco valued at US$35 million had been sold through the auction system during the period, compared to 190,3 million kg worth US$530 million that was traded through the contract system.
The tobacco marketing season kicked off in April, and most of the tobacco has since been reported to have been delivered to sales floors, although mop-up sales are reported to be still coming through.
