Zimbabwe to Gain US$500 Million from Tobacco Production in 2010/2011 Cropping Season

Zimbabwe is forecasting to gain US$500 million from export of smoking products within the 2010/11 cropping season. The country had initially deviated in US$361 direct earnings from the harvest during the selling season. At a press conference Agriculture Minister Joseph Made declared that tobacco had become the biggest foreign currency earner for our economy. “Agriculture is the main contributor to the country’s increasing GDP as in 2009 and in 2010 it brought to 14, 9% and 19% respectively.”

“Tobacco sector provides new work places and income for more than 70% of the population, provides 60% of raw materials necessary by the industrial sector and contributes to 40% of total export earnings,” he stated. Agriculture Minister Made welcomed the tobacco sector for working hard within the tobacco production and selling season. There was registered an increase in production by about 7% from 123,5 million kilograms of tobacco produced last season to 132,4 million kilograms this crop season.

The continued growth has been attributed to rose production from small scale tobacco growers. “Due to this progress, the country is continuing its way towards merging its world position as in essential international player in global tobacco manufacture and trade,” he stated. Tobacco production has been on the raise over the last years.

“The number of tobacco farmers has risen greatly from registered 8 500 of (growing about 10 hectares each) to approximately 66 000 tobacco farmers (growing about 1, 3 hectares each) of whom 80 % are fine scale in the A1 sector,” he stated. Referring to the same function, Tobacco Industry and Marketing Board spokeswoman, Monica Chinamasa, underlined that the just finished tobacco-selling season was characterized by insufficient support from the financial institutions. “This has become an everlasting problem that hinders the fast recovery of production. “The A2 sector is one of the most affected by this absence of funding. The given sector only accounted for 12% of whole production, in comparison to 28% for A1, 18% communal, 11 % fine scale and 31 % large scale producers,” she stated. Mrs. Chinamasa declared that there was necessity for a coordinated effort to instruct farmers to decrease handling losses, which were higher than 21 % during the just finished crop season. Tobacco production was also affected by persistent power cuts that raised the cost of production and drop viability. She complained of the present sales floor facilities and all marketing systems, which were overcome and overcrowded resulting in tobacco growers steady delays in sales, loss of goods and inappropriate catering. Particular challenges included payment delays, inappropriate catering, ineffective service and other important support services.