Zim Now Writer
Tobacco farmers selling their crop through the auction system are experiencing a significant boost in earnings this season, with average prices firming to US$3.85 per kilogramme. This represents a notable 10% increase compared to the US$3.56 average recorded during the same period last year at the auction floors.
This positive trend stands in stark contrast to contract sales, where the average price has only seen a marginal one percent increase, rising from US$3.40 to US$3.43 per kilogramme compared to last year.
Tobacco Marketing Expert, Sam Garaba, highlighted the widening gap, stating, "This is a 10% increase in price for the farmers who sell at auctions, compared to the same period last year... While at contract, this means a one percent increase... to a suppressed US$3:43."
The consistent firmness of prices at the auction floors since the start of the selling season in early March has been welcomed by farmers, who describe the current returns as significantly more profitable than in previous years.
One farmer from Banket expressed his satisfaction, saying, "We are happy that this year there is a big difference in terms of the pricing matrix – our primings are fetching good prices, and as we bring our best leaf, we expect to break the US$4.99 sealing."
Another tobacco grower emphasized the incentivizing effect of the auction prices, stating, "The prices being offered here, especially at auction floors, give us farmers with free tobacco the zeal to grow more next year." "Free tobacco" in this context refers to tobacco grown independently and not under contract.
The favorable prices at the auction floors appear to be having a positive impact on overall deliveries. So far this year, a total of 123 million kilogrammes of tobacco have been delivered to the auction and contract floors combined, slightly surpassing the 122 million kilogrammes recorded during the same period in the previous season.
Witness Runodada- Zim Now ReporterHealth officials have reported a sharp rise in malaria cases, with 3,304 new infections and eight deaths recorded this week.According to the Ministry of Health and ..
ZimbabweZim Now WriterThe Trump administration has unveiled new "reciprocal tariffs" targeting Zimbabwe, imposing an 18% duty on the country’s exports to the United States.This policy, announced yesterday, ..
ZimbabweMunyaradzi Mashiri – Court CorrespondentA 37-year-old man appeared in court facing charges of unlawful possession of copper after he was allegedly caught burning copper cables at a primary school.Ra..
Zimbabwe
Leave Comments