Tobacco farmers sell $312m worth of golden leaf
HARARE — Tobacco farmers have so far accrued $312 million from the sale of 107,8 million kilogrammes of Virginia tobacco since the tobacco selling season began on March 30, latest Tobacco Industry and Marketing Board (TIMB) statistics show. The 107, 8 million kg of tobacco were sold both on the auction and contract floors. The TIMB statistics show that a total of 21 million kg of tobacco worth $53 million was sold at the auction floors while 86,8 million kg worth $259,1 million was sold at the contract floors.
The tobacco sold is 20,79 percent more than what was sold during the comparable period last year. A total of 89,3 million kg worth $258 million had been sold during the same period last year.
e average price of tobacco at auction floors is currently $2,52 per kg while the contracted crop is being bought at an average price of $2,98 per kg reflecting an increase of 0,12 percent from the prior comparable period.
TIMB said the top price for the contract floors is currently $6,25 per kg while at the auction floors it was $4,99 per kg. The lowest price that has been recorded so far is $0,10 per kg. A total of 6,09 bales have so far been rejected due to poor quality and poor packaging this season, compared to 9 percent rejected the same period last year.
This season tobacco volumes are expected to decline by 20 percent due to the El Nino induced drought which affected the crop.Meanwhile the 2016 tobacco marketing season is at its peak with the number of bales coming to the auction floors is expected to decline in the upcoming weeks.