Tobacco season opens on high note

HARARE - The 2018 tobacco marketing season opened on a high note, with the golden leaf auctioning at $4,99 per kg, 39 cents higher than last year's opening price.

The first sales raked in $346 000 from 156 000kg that went under the hammer.

Tobacco Sales Floor (TSF) offered $4,99 per kg while Premier Tobacco Auction Floors bought at $4,90 per kg.

The lowest price of $0,30 per kg was recorded at TSF, while the lowest price of $1,05 per kg was recorded at Premier Tobacco.

The average daily price was $2,22 per kg compared to $2,20 per kg last year.

Statistics from the Tobacco Industry and marketing Board (TIMB) show that the first day of sales was smooth sailing although there was a 19 percent decline in the sales compared to last season first day sales of 192 000 kilogrammes.

TIMB licensed three auction floors for the 2018 marketing season: Tobacco Sales Floor, Boka Tobacco Floors and Premier Tobacco Auction Floors.

Tobacco sales are expected to improve the country’s foreign currency flows as the industry looks forward to bringing in over $600 million from this year’s crop.

Last year, the country earned $559 million from the sale of 189 million kg of the golden leaf at a seasonal average price of $2,89 per kg.

“Over the years, tobacco also known as the golden leaf has a earned strategic position in the Zimbabwean economy, contributing 14 percent to the Gross Domestic Product and significantly to the foreign currency earnings,” Vice President Constatino Chiwenga said during the opening of the selling season.

Contract sales, which accounts for 82 percent of the crop opened the following day on March 22.

The Board this year licenced 29 and 23 “A” Class and contract buyers respectively.

— The Financial Gazette


Comments (1)

Prices quoted - are these US dollars or mabondi dollars - two very different currencies comrades - one US dollar = 1 and a half mabondi so its only natural that prices will be higher - just like the ZSE

ace mukadota - 25 March 2018

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