ZIMBABWE'S tobacco sector is gearing up for a promising 2024/25 season, with farmers expressing optimism and regulators forecasting a robust harvest of 300 million kilogrammes.
The Tobacco Industry and Marketing Board (TIMB) said the target aligns with the government's value chain transformation plan of the golden leaf, which also aims to enhance beneficiation and raise local funding.
“We have high hopes of attaining the set target following the pleasant weather forecast. We acknowledge the government’s support, especially our parent ministry led by Anxious J Masuka (Agriculture minister). With his hands-on approach the country is on course to accomplish a US$60 billion tobacco industry by 2028,” noted TIMB acting CEO Emmanuel Matsvaire in a statement.
Despite the El Nino induced drought that destroyed various crops last year, tobacco performed relatively well, declining by 20% to approximately 231 million kgs from a record 297 million kgs during the previous season.
“Government’s support has seen a remarkable increase in the number of tobacco growers, backed by rising production records and foreign currency earnings. The area planted has risen by 53% to 116 454 last year from 76 017 in 2001. The earnings that farmers pocketed also increased by 152% from US$356 million in 2010 to US$897 million last year,” he added.
As of October 4, 2024, a total of 159 433 679 kgs of tobacco valued at US$833 992 692 as compared to 143 233 697 kgs recorded during the same period last year has been exported. The average export price this year stands at US$5,23, an increase from US$4,99 during the same period last year.
Last year the country earned US$1,3 billion from tobacco exports, which is 6% of the global market. This was a 30% surge from US$1 billion in 2022.
The government is currently working to increase processing and value addition of tobacco from two percent to more than 30% to boost earnings.
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