Zimbabwe Farmers' Union

2016 Tobacco Marketing Season Kicks Off

04 Apr 2016

The 2016 Tobacco Marketing Season commenced on 30 March for auction sales and 31st of March for the contract sales.

Licenced are three auction floors; Boka Tobacco Sales Floor, Tobacco Sales Floor and Premier Tobacco Floors; 18 Class A Buyers and 16 Contractors.

 TIMB is introducing E-marketing system which at the moment will run parallel with the conventional system which is expected to improve on transparency and ensure real time sales information to the growers.

 Also new this season is a payment system which will see farmers receiving proceeds through bank accounts and farmers are thus encouraged to open bank account with banks of their choice.

The Reserve Bank of Zimbabwe (RBZ) has engaged banks to offer tobacco farmers with favourable conditions which include waiving bank accounts maintenance charges and opening accounts with National ID and Grower’s Number only.

This new payment system among other things is aimed at improving financial inclusion paving way to access to funding from the banking system.

Although the 2016 first bale was bought at $4.50/ kg higher than $3.50/kg of 2015, the 2016 sales started on low prices.

 For sales day 2, average prices ($/Kg) were as follows; auction $1.47 vs. $1.48 in 2015 whilst for contract sales it was $2.13 vs. $4.05 in 2015. A total of685 943 Kg were delivered vs. 646 119Kg in 2015

Table1: Flue Cured Tobacco Auction Sales Day 2

DAILY AUCTION

TSF

BTF

PTF

 2016 TOTAL

2015 TOTAL

% CHANGE

Mass sold(kg)

           286,141

           110,588

          121,526

               518,255

           366,348

                41.47

Value(US$)

           459,145

           149,539

          152,345

               761,029

           542,345

                40.32

Avg.price US$/kg

                 1.60

                 1.35

                1.25

                     1.47

                 1.48

                 (0.81)

Rejected %

5.82%

9.87%

17.37%

9.64%

16.62%

               (42.00)

Bales laid

               4,333

               1,773

              2,090

                   8,196

               6,589

                24.39

Bales Sold

               4,081

               1,598

              1,727

                   7,406

               5,494

                34.80

Rejected Bales

                  252

                  175

                 363

                      790

               1,095

               (27.85)

Highest Price

                 4.86

                 4.65

                4.80

                     4.86

                 4.95

                 (1.82)

Lowest Price

                 0.10

                 0.20

                0.10

                     0.10

                 0.10

                      -  

Source: TIMB

 

 

 

 

 

Table 2: Flue Cured Tobacco Auction Sales Day 2

DAILY CONTRACT

2016 TOTAL

2015 TOTAL

% CHANGE

Mass sold(kg)

                167,688

                        279,771

                             (40.06)

Value(US$)

                356,995

                     1,131,736

                             (68.46)

Avg.price US$/kg

                      2.13

                              4.05

                             (47.37)

Rejected %

1.55%

2.41%

                             (35.82)

Bales laid

                    1,940

                            3,030

                             (35.97)

Bales Sold

                    1,910

                            2,659

                             (28.17)

Rejected Bales

                         30

                               371

                             (91.91)

Highest Price

                      5.20

                              5.70

                               (8.77)

Lowest Price

                      0.20

                              0.10

                            100.00

       

Source TIMB