Tian Ze helps rejuvenate tobacco industry

Michael Mashiri

Tian Ze Tobacco Company says its entry on the scene has helped rejuvenate Zimbabwe's tobacco industry.

Mr Wenjie Li addressing journalists at Tian Ze Tobacco Company media open day

“Before Tien Ze came into Zimbabwe, a few players dominated the local tobacco market and the highest price was US$2.99 per kg. However, the coming in of Tian Ze increased the competition and offered a competitive price thus increasing the benefit to the farmers," said Tian Ze managing director Wenjie Li.

Li was speaking during a media tour hosted by Tian Ze. He said in the 17 years that Tian Ze has been in Zimbabwe, the national tobacco crop size increased from 48.8 million kilograms in 2008 to an average of 200 million kilograms in recent years.

He said Tian Ze has focused on empowering farmers who are the key players in the production chain and the company now has around 200 farmers producing on an excess of 11 000 ha annually.

"We have been providing interest-free loans, zero mark up on inputs, free technical support, training and service to our contract farmers to help them improve on tobacco production.

"The company purchases almost 30 million kgs of flue-cured tobacco produced from its contract scheme," he said.

Li said with Tian Ze’s US$80 million annual investment into contract farming, most farmers have increased their tobacco production from 10 ha to more than 100 ha.

The increased production and increased revenue has seen some farmers upgrade their rural homes, buy urban houses and afford to send their children to universities abroad.

Tian Ze has also been a responsible corporate citizen, investing back into the communities through various programmes. One of these is Dunolly Primary School where the tobacco company has upgraded infrastructure and given support in other ways.

Li highlighted how pivotal tobacco has been in the promotion of Zimbabwe and China trade which has been growing steadily with Zimbabwe gaining a trade surplus in 2022.

"Over the past few years, China Tobacco has been purchasing about 65 million packed tobacco from Zimbabwe worth over 600 million US dollars annually. Tian Ze alone supplies 18 million kgs, taking up to 25% of China's total purchase and playing a critical role in the Zim-China trade," said Li.

He said China is set to purchase 70 million kilograms packed tobacco from Zimbabwe this season.

Tian Ze is a subsidiary of China National Tobacco Company and is involved in tobacco contract growing, auction floor purchasing, processing warehousing and exporting of tobacco to China.

Tian Ze also sources tobacco leaf from Zambia, Malawi and Tanzania on behalf of China National Tobacco Company.