Tobacco fetches US$4.50/Kg on opening day

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HARARE – The 2021 tobacco selling season has opened, with the first bale selling at US$4.30 per kilogramme which is higher than the US$4 that was offered last year where 184 kilogrammes were delivered.

In 2019 and 2018, the first bales were sold at a higher price of US$4.50 and US$4.90 respectively. The graph below shows opening prices from 2014 to date;

The Tobacco Industry and Marketing Board (TIMB) has licensed the three traditional auction floors in Harare: Boka Tobacco Floors, Tobacco Sales Floor, and Premier Tobacco Floors.

The larger chunk of crop is now sold through contract system, as was effectively done last year. Contract sales open tomorrow.

Meanwhile, a high quality crop is expected this year, albeit with lower yields. Farmers are also looking forward to viable prices compared to last year.

“While disease-affected, thinner crops may not be acceptable by all buyers, there remains a strong demand. Much firmer US dollar prices are expected that should push the national average price significantly up on last season,” said the Zimbabwe Tobacco Association (ZTA).

The graph below shows peak prices during the 2016 to 2020 marketing seasons.

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