FARMERS' earnings from tobacco sales continue on an upward trajectory recording a 75 percent increase from US$59 million earned by Day 13 in the 2023 marketing season to US$103 million during the same period this year.
Auction floors have seen the price ceiling of US$4, 99 per kilogramme crumbling after a highest of US$5, 05 was recorded this year.
Statistics from the Tobacco Industry and Marketing Board (TIMB) show that farmers have pocketed US$102 825 051 this year against last year's US$58 734 890.
In volume terms there was a 51 percent increase from 19 531 242 to 29 577 870 kilogrammes.
The average auction price's upward trajectory continued when it hit US$3,51 per kilogramme from US$3, 47 as at Day 11.
The same trend was noticed under contract with the average price rising from US$3, 43 per kilogramme by Day 11 to US$3, 47 currently.
The average auction price was higher than that under contract.
A 16 percent increase in average price from US$3, 01 in 2023 to US$3, 48 this year was noticed.
Sales from contract floors account for 93 percent of the volume of all tobacco traded with current deliveries at 27 620 169 kilogrammes while that auction stands at seven percent with 1 957 701 kilogrammes.
Farmers under the auction and contract system had by Day 13 pocketed US$6 877 704 and US$95 947 348 separately.
Farmer training by TIMB and various stakeholders in the tobacco value chain on grading, presentation and bale handling among others, has contributed to a 48 percent drop in bale rejections this year as compared to the same period last year.
This year's highest contract price if 26 percent larger than last year's US$5, 55.
Meanwhile, farmers have expressed satisfaction that the perceived price ceiling of US$4, 99 at the auction floors had finally been broken and want the price to continue rising to match this season's high cost of production.
"We are happy that the cap has been broken. That is a good sign that the buyers have listened to farmers' outcry, nevertheless that does not mean much to profitability of the crop. We appreciate the good start and hope the auction price will catch up with the contract price," Zimbabwe Tobacco Growers Association (ZTGA) chairman Mr George Seremwe said.
If the contract crop can be bought at US$6, 99 per kilogramme why can't the best auction crop be bought at the same price, he asked.
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Mr Seremwe said growers would be happy if a lot of their bales got high prices above US$5 per kilogramme instead of the few that are making it with the rest scoring low prices.
"We don't want a sugar coat price but a real price change across the board," he said.
Tobacco Farmers Union Trust (TFUT) president Mr Victor Mariranyika said they were satisfied with the breakthrough on the price cap, as it was a step towards achievement of vision 2030 objectives.
"This is a positive response to our advocacy and lobbying and we hope forces of demand and supply will determine prices to increase profitability for farmers.
"Our prayer is that the Government reviews upwards the foreign currency retention from the current 75 percent to more than 85 percent, as was the case last season. We eagerly await the announcement of the monetary policy statement," he said.
