Published: 16 June 2014

Zimbabwe's tobacco sales are inching towards the 200 million kilogramme mark although low prices have seen earnings not going significantly higher than last season.

The targeted crop this season was 180 million kgs which was surpassed last week.

Latest figures from the Tobacco Industry and Marketing Board show that more than 191 million kgs worth $610 million have been sold, a 32 percent increase from the same period last year. But the value sold to date is only 14 percent higher than last year's $537,5 million due to prevailing lower prices for auction sale.

Contract floors have so far received 144 million kg worth $479 million while auction floors have purchased 48,1 million kg worth $132 million. The average price for contract tobacco was $3,33 per kg and $2,74 for auction tobacco.

While auction floors have been the lifeblood of many farmers, the low prices have pushed most of them to turn to contract farming for them to get more from their crop. Auction floors are also reportedly considering diversifying into contract farming.
- bh24

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