Tobacco seasonal prices dropped

HARARE - The average seasonal price of tobacco at the auction and sales floors has dropped from US$2, 98 per kg last year to US$2, 94 this season.

According to figures from the Tobacco Industry and Marketing Board, since the onset of the marketing season in February, Tobacco Sales Floor (TSF) has sold 20 944 321 kg with a value of US$65 761 614 with a daily average price US$2,66. The Zimbabwe Tobacco Auction Centre (Zitac) sold 19 036 76 from which US$51 831 114 was realised translating into a daily average price of US$2,72.

An agriculturalist, Thomas Nherera, said when the tobacco selling season started this year buyers did not have money resulting in a drop in the average seasonal price. “The average seasonal price has this season dropped from US$2,98 a kg to US$2,94 per kg because the marketing season this year started on a very high note and buyers were not prepared to buy because they did not have money. And because the season started on a high note, this also explains why crop deliveries have surpassed last year’s figures by more than 60 per cent to date,” he said.

More than 39 981 082 kg were also delivered to Zitac and TSF through the auction system, generating US$107 592 758. About 67 887 858 kg with a value of US$209 964 166 were delivered through the contract system. As of 2 August, US$317 556 975 had been realised from the sale of 107 868 940 kg. In 2009, 58 190 352 kg of tobacco were sold resulting in the country earning US$173 523 216.

Post published in: Economy

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