- Significant Revenue Growth: Reached $1 billion year-to-date, surpassing last year's $960 million
- Increased Cultivation Commitment: Farmers have purchased 30% more seed than the previous season
- Rising Participation: A total of 117,885 growers have registered for tobacco production this season, an 11% increase
Harare- Zimbabwe's year-to-date tobacco exports have raked in US$1 billion exceeding the US$960 million recorded in 2023 according to Tobacco Industries Marketing Board.
The country shipped approximately 187.6 million kilograms of the commodity, marginally surpassing the 185.5 million kilograms exported during the same period last year with average prices increasing to $5.41 per kilogram, representing a 4.4% uptick from $5.18 per kilogram in 2023.
This upward trajectory is poised to continue, as farmers have demonstrated increased interest in tobacco cultivation.
Farmers have demonstrated a proactive approach to this season's planting, purchasing 30% more seed than in the previous season.
To date, 22,333 hectares of tobacco seedlings have been transplanted, nearly matching the area planted during the same timeframe last year. This expansion in cultivation area indicates a strong commitment by growers to capitalize on the favourable market conditions.
Currently, a total of 117,885 growers have registered for tobacco production this season, marking an 11% increase compared to the previous year.
This notable rise in the number of registered farmers highlights the growing interest in tobacco cultivation, particularly among communal and small-scale commercial farmers, who form the backbone of Zimbabwe's tobacco industry.
However, the financing landscape remains challenging for many farmers.
With limited access to bank credit, a significant portion of the farming community relies on financing from contractors.
Approximately 90% of all tobacco production in Zimbabwe is conducted on credit provided by foreign contractors, with auction sales accounting for the small remaining fraction.
This dynamic means that a substantial proportion of the earnings derived from tobacco sales is allocated to repaying contractors, which can significantly reduce the financial benefits accruing to the growers themselves.
The reliance on contractor financing highlights the need for improved access to credit and support for local growers to ensure that they can fully benefit from the revenue generated by their hard work in cultivating this vital cash crop.
Zimbabwe's tobacco industry remains a vital contributor to the national economy, trailing behind gold and PGMs.
