Tobacco farmers have pocketed US$143 million from the sale of 41 million kilogramme of flue-cured tobacco at both the auction and contract floors, as trading entered Day 17 with the average price rising by 13 percent.
Statistics from Tobacco Industry and Marketing Board (TIMB) show that farmers have so far pocketed US$143 247 209 against last year's US$96 364 470 marking a giant leap of 49 percent.
In volume terms there was a 27 percent increase from 32 284 394 to 41 015 947 kilogrammes.
Contract floors account for 94 percent of the tobacco volumes after taking delivery of 38 432 613 kilogrammes while their auction counterparts stand at six percent with 2 583 334 kilogrammes.
Farmers have earned US$9 251 270 and US$133 995 940 under the auction and contract system respectively.
The average auction price has surged 16 percent from US$3, 09 per kilogramme on Day 1 to the current US$3, 58 while contract floors recorded a 13 percent rise from US$3, 09 by Day 2 to US$3, 49 by Day 17.
This year's average auction price is higher than that for contract sales at US$0, 09.
A comparison of the 2023 and 2024 season shows that there is a 17 percent increase in average price from US$2, 98 to US$3, 49.
Training of farmers on grading, presentation and bale handling among other requirements by TIMB and other stakeholders in the tobacco value chain have seen a 38 percent drop in the number of bales rejected this year compared to the same period last year.
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The highest price at the auction floors so far sits at US$5, 05 per kilogramme, up from last season's US$4, 99 while that for contract floors has remained at US$6, 99 to mark a 25 percent surge from last year's US$5, 60.
Meanwhile, farmers have expressed dissatisfaction with the current average price, which ordinarily should be higher, as supply is curtailed due to the El Nino drought. This contrasts sharply with what is happening in the Brazilian markets where prices are high as a result of low supply.
Zimbabwe Tobacco Growers Association (ZTGA) chairman Mr George Seremwe said Brazil's tobacco prices are high this year, as a result of low production.
He said: "Brazil is almost US$1 million up from last year's figure with a lower quality crop than ours this year."
The Brazilian tobacco report released by the growers' organisation Afubra dated April 03, 2024 shows that out of an estimated flue-cured virginia tobacco production of 475 tonnes, 77 percent had been sold at an average price of US$4, 46 per kilogramme, grossing US$1, 6 billion. The average price has risen 24 percent. Production of flue cured tobacco in Brazil is 14 percent lower than that of last year.
