Tianze: Helping hand for tobacco growers
The Chinese must be a happy lot. Guided by one of their proverbs, it can be concluded that with their assistance cutting across the whole world they are indeed a happy nation.
THE proverb goes; “If you want happiness for an hour - take a nap. If you want happiness for a day - go fishing. If you want happiness for a month get married. If you want happiness for a year - inherit a fortune. If you want happiness for a lifetime - help someone else.”
This happiness is, today, being shared with Zimbabwean tobacco farmers benefiting from the Tianze Tobacco Company contract farming programmes.
Since “Look East” became a policy, the assistance continues to flow for Zimbabweans.
Fledging tobacco farmer Mr Ephraim Pasipanodya of Combe Farm in Banket, Mashonaland West Province can attest to benefiting from the growing relations between Zimbabwe and China.
A beneficiary of Government’s land reform programme, Mr Pasipanodya has grown from a struggling “new” farmer to a successful tobacco grower.
“I benefited from the land reform in 2004 and we started with just 10 hectares under tobacco but we have since gone to 60 hectares with a projected output of 200 tonnes of the crop,” he said in an interview recently.
Mr Pasipanodya who has already prepared 100 beds of tobacco seedbed to cover 35 hectares of irrigated crop will transplant the crop on September 1.
The dry land crop to cover 25 hectares will be planted on October 24.
“It hasn’t been an easy road but I am glad we have reached so far. In a nutshell, 2006 was shack while 2008 was the worstever season for farmers.
“In 2012, I decided to build a tunnel and some grading sheds. However, the following season, I got a break through when Tianze gave me a centre pivot and a second one the following year.
“I also got assistance to finish the twoheat source tunnel system that can cure tobacco from 42 hectares.”
The tunnel system at the farm is worth at least US$500 000. The assistance saw Mr Pasipanodya continue increasing his hectarage and yield which increased from 140 tonnes in 2015 to a high of 180 tonnes in 2016.
“We had set a projected 200 tonnes last season but harvested 155 tonnes as the seasons changed from very dry to very wet affecting the quality of the tobacco.
“The quality was good but the weight was affected by the heavy rains,” he said.
The Banket farmer attributed his success story to a number of reasons including knowledge, financial support, equipment, labour and supportive Government institutions.
“I have gained a lot of knowledge from Tianze officers based here in Mashonaland West as they have always been with us throughout the season.
“Although I have attended a number of courses, we have also formed discussions groups with farmers in the area where we share ideas,” he said.
Agricultural production is capital intensive, Mr Pasipanodya said.
“A farmer needs financial support and I have made it a point to build excellent working relationship with Tianze and my bankers. We spend between US$4 000 and US$5 000 per hectare so it’s not easy without assistance from contractors and financial institutions.”
Other costs include labour, electricity, coal, diesel, inputs such as fertilisers and seed and salaries and wages.
“A satisfied labour force is also quite important while working with officers from Government institutions also helps for one to be a successful farmer,” he said.
Mr Pasipanodya employs about 20 permanent workers but the labour forces grows beyond 150 people during peak season.
“Firstly, agriculture is a business but I think it is also important to build a strong relationship with the contractor and banker.
“Tianze pays for all my needs including wages for the workers and inputs.
“All that we need to do is to adhere to the quality of tobacco that they require and they provide everything including the market,” he said.
Mr Pasipanodya’s relationship with Tianze has yielded for his activities two centre pivots, two tractors and a truck.
He is also expecting a third tractor this season.
According to the Tianze Production and Technology Manager Dr Li Xiangyang, farmers receive loans each season.
“The loan will be for inputs (such as fertilisers, chemicals, coal, electricity, wages, repairs and maintenance among others).
“Then as we grow with the farmers, we see the needs of the farmer and recommend that these farmers purchase certain equipment for their farming activities to be better. For example, if we see a need in curing, we can advise the farmer that he build a tunnel for better curing of his tobacco.”
He said most of the farmers do not have enough financial resources to acquire the necessary equipment.
“So for relations’ sake, we help our farmers outside the loan amount. We call it capital expenditure (Capex). We purchase the equipment on the farmer’s behalf and the farmer will pay for that equipment during the selling season.
“The equipment which can be bought under Capex are centre pivots, tractors, tobacco trolleys, funds for building a tunnel, heat source for a tunnel and other equipment,” he said.
Established in 2005, Tianze Tobacco Company (PVT) Ltd is Zimbabwe-registered international tobacco merchant with greater involvement in the entire tobacco supply chain. That is, from contract growing, auction floor purchasing, processing and exporting of tobacco to China and has grown to be the largest export destination for Zimbabwean tobacco.
The Company is owned by China Tobacco Company which is owned by the Government of China.
Tianze Tobacco Company not only purchases its tobacco directly from local tobacco auction floors and contracted tobacco farmers but also buys from other local tobacco companies including renowned merchants such as the British American Tobacco and Alliance One.
In the SADC region, Tianze Tobacco is supervising the sourcing of tobacco leaf from Zambia and Malawi on behalf of China Tobacco Company and is currently assessing other Southern Africa tobacco growing sources such as Tanzania, Uganda and South Africa.
In addition to offering the best and most viable pricing model to local tobacco farmers, Tianze Tobacco Company has demonstrated strong corporate citizenship based on respecting, developing and fostering relationships in the communities it operates.
According to figures from the Tobacco Industry Marketing Board, contracted farmers had sold 1 642 983 bales of tobacco under contract as June 19, 2017.
The tobacco weighing 131 639 409 kilogrammes earned US$385 million at an average price of US$6 per kg.
Trade volumes between Zimbabwe and China are set to go beyond the $1 billion mark by year-end. China imports tobacco, cotton and various minerals from Zimbabwe while local businesses have turned to the East Asian economic giant for electronic, clothing and other finished products. Zimbabwe exports at least 55 percent of its tobacco to China.