Farmers gear up for tobacco marketing

TOBACCO farmers are geared for a smooth marketing season and have hailed the Tobacco Industry and Marketing Board (TIMB) for introducing a transporter framework to protect growers from unscrupulous transporters during the marketing season.

The marketing season is set to open on March 13 for auction floors and the following day for contract sales, which account for the overwhelming bulk of the crop.

The transporter framework will reduce losses incurred by farmers during the ferrying of crops to the market.

Over the years tobacco farmers encountered challenges such as robbery, theft and rains while transporting the crop to the market.

The marketing season brings joy to those growers who have done a good job as they get high prices.

Last season, farmers had a good crop and most of them were happy with the prices offered by buyers.

However, some contracted growers experienced challenges as some of the companies failed to honour the obligations of paying on time.

Last season, growers were paid 75 percent directly into their foreign currency accounts and this was treated as free funds while 25 percent local currency was deposited into the growers’ local bank accounts or e-wallets.

In a statement, TIMB said the US dollar retention was standardised at 75 percent in line with the retention level for other sectors and businesses.

This means that 25 percent will be paid to tobacco growers in local currency. But most of the charges and levies are deducted from the local currency payment, this means that the percentage of the net payment that comes to the farmers will have a foreign currency component significantly higher than 75 percent.

“Given that the 25 percent to be paid to tobacco growers in local currency is applied on the net sales proceeds after settlement of all the loans, levies and other marketing costs, the net effect of this arrangement is that the tobacco grower shall effectively have a foreign currency retention which is higher than 75 percent,’’ said the board.

Tobacco Farmers Union vice president, Mr Edward Dune said farmers are geared for the marketing season adding that a meaningful harvest is expected although climate change affected the crop.

“We can achieve 70 percent of last year’s product.

“The climate was tricky because some of the crop was compromised by the climate. This is the right time to sell our crops. We want money to circulate because this is the agrobased economy,’’ he said.

Tobacco Farmers’ Union Trust president Mr Victor Mariranyika said farmers were looking forward to a smooth marketing season where they do not experience challenges selling their crops and getting their money.

He also indicated that a transporter framework that was introduced will ensure that farmers have reliable transport adding that robbery cases are likely to be reduced.

“Farmers should enjoy their hard work. Transparency is needed to ensure that farmers get their money from their work. We hope this framework will assist farmers to ensure that the movement of crops is not disturbed by various challenges.”

The selling model should be addressed to ensure that farmers get profits from their hard work. Currently, farmers are still harvesting and the rain-fed crop is still young. I do not think the dates are ideal. The market depends on volumes,’’he said.

Recently, Zimbabwe Tobacco Association (ZTA) chief executive officer Mr Rodney Ambrose said large percent of irrigated crop had been cured and were ready for the market adding that the early opening of floors is critical for farmers.

“Farmers representatives have indicated that an early start to the season would help them to clear loans and reduce risks of stocking graded tobacco,’’ he said.

Tobacco farmers in Banket have indicated that by opening early they will get their money and invest in other businesses even for the winter cropping season adding that the transporter framework will ensure that their crop is protected.

Mrs Tariro Muchemwa said early opening is critical to ensure that farmers embark on other businesses.

“Farmers require capital so the earlier we sell our crop, the earlier we get money to embark on other crucial projects. We do not rely on farming alone. We need to do other businesses.

“We are also happy that TIMB has introduced a transporter framework which will ensure that our crops are well protected on the way to the market,’’ she said.

Mr Tendai Magoronga said the late opening of the season has also been identified as one of the reasons why farmers fall prey to middlemen who approach them at the farms.

“Another advantage of opening early if farmers are ready is that post-harvest losses will be reduced as there will be less handling of the crop.

“Several farmers have incurred losses through poor handling of the crop as they wait for the opening of the selling season,’’ he said.