2025 Tobacco Sales Surpass US$100 Million in First...

2025 Tobacco Sales Surpass US$100 Million in First 17 Days

Zim Now Reporter

Zimbabwe's tobacco sales have surpassed the milestone of US$100 million in just 17 days since the auction and contract floors opened mid-March.

The national crop sold so far has reached 30 million kilograms, with deliveries increasing steadily as the marketing season progresses.

This marks an increase in both the volume and price compared to 2024, when just over 64 million kilograms of tobacco had been sold as of 17 April at an average price of $3.55 per kg.

This year’s target production was set at 300 million kgs, and it is expected that 280 million kgs will be sold.

Top-quality tobacco at auction floors is fetching between US$4.50 and US$4.99 per kilogramme, while contract floors are offering a high of US$6.30 per kilogramme.

This price increase, particularly at contract floors, has instilled optimism among farmers, who anticipate the price of the golden leaf to break the US$4.99 ceiling at auction floors.

The biometric system implemented by the Tobacco Industry Marketing Board is expected to curb side marketing and reduce instances of farmers being scammed by cartels who include staff and illegal middlemen.

Tobacco is one of Zimbabwe’s major foreign currency earners and has helped the country stabilize its trade balance with China, its biggest tobacco buyer.

Major Chinese buyers like Tian Ze have invested heavily in the supply chain, creating employment and social development, especially in education, in the areas where they have established producer relations with smallholder farmers.

Zimbabwe has announced plans to increase its tobacco industry value to US$5 billion through value addition initiatives.