Zimbabwe: Tobacco Rakes in U.S.$445 Million

Tobacco earnings for the current marketing season have so far earned the country US$455 million, 45% ahead of sales for the same period last year which were US$313 million. A total of 122 million kilogrammes have been sold at an average price of US$3,72 per kg, while sales for the same period last year were 115 million kg sold at an average price of US$2,72, an 37% improvement in prices. Contract sales have realised US$273 million from 75 million kg at a firm average price of US$3,80 per kg, while 48 million kg have gone under the hammer on the open auction floors, realising US$172 million. The average prices on the auction floors have been US$3,61 per kg.

Meanwhile, Tobacco farmers in Africa met in Zambia last week and objected to proposals by the Framework Convention on Tobacco Control (FCTC) to stop the cultivation of the crop as development market forces would not allow this owing to high demand for the leaf internationally. Tobacco farmers and representative bodies at the meeting, which was hosted by the International Tobacco Growers Association (ITGA), a lobby organisation for tobacco farmers internationally, said proposals by FCTC to ban cultivation of the crop was disturbing, exclusive and going beyond FCTC mandate.

 ITGA Africa region chairman François van der Merwe said FCTC's original mandate was to explore research and promote alternative crops in the event that demand for tobacco globally declines. "The suggestion that an outside organisation should think it morally right to dictate what a farmer's land can and cannot be used for in the pursuit of his or her livelihood is disturbing to say the least." "Market forces will not allow this prescriptive-style to prevail. As long as there is a demand for leaf, it will be grown," Francois said. FCTC's recommendations include limiting land under tobacco cultivation as control measure to control use of the crop.

 Governments in tobacco growing countries as part of the recommendations should not provide incentives to increase acreage of land for tobacco cultivation and with time should freeze the total acreage under the crop. Farmers said although there are alternative and staple food crops, such as maize, tobacco remains a cash crop with high returns compared to any other crop. Joseph Wanguhu, who represents the Kenya Tobacco Farmers Association (KTFA) said he was skeptical about the viability of alternative crops, which have a market internationally and poorly priced compared to tobacco.