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Tobacco farmers have benefited $411 million from 141 million kilogrammes of tobacco sold at an average price of $2,92 per kilogramme. Of these 26,9 million kilogrammes were sold under the auction system whilst 114 million kilogrammes were sold under the contract system. Last season after 56 days, farmers had benefited $379 million from 129 million kilogrammes.The bale rejection rate has continued to decline as farmers master good agronomic practices with 122 355 bales rejected this season compared 145 006 bales rejected last season.

However, unless farmers are aware of their costs, they will always be in the dark regarding the profits they will have made in a particular season and they may be tempted to think that all their proceeds are profits. As a result farmers may be tempted to spend all the proceeds.

This misconception is brought about if farmers do not keep records of their costs of production right through to the expenses they incur at the floors when they go to market their tobacco.

As farmers prepare seedbeds, the Tobacco Industry and Marketing Board encourages farmers who were not keeping records in previous seasons to start this simple yet very important exercise.

With registration for the forthcoming season already underway, the first cost could be registration for the 2017 season which is $10 until the 31st of October 2016.

There is no reason for tobacco farmers to wait until there is a penalty.

In a small notebook, a farmer can write the price of seeds, transport, fertiliser, hessian, labour, insurance, fuel, equipment, accommodation and entertainment in Harare and so on until the end of the season. This enables a farmer to keep their eyes on the cost of production which is easier done when one refers to their records as opposed to trying to remember from their mind.

It is also good agribusiness practices for farmers to realise that they generate their income during the marketing season, sometimes in a once off sale yet they need to spread their earnings over the twelve months in a year.

This has been made easier with the opening of bank accounts for all tobacco farmers hence there is no need for farmers to keep all their proceeds in the house.

If one spreads their earnings over the year, there will be less incidences of farmers getting stranded at the selling floors on the pretext that they do not have bus fare to go back home, thereby losing precious time to grade and bale more tobacco for the market. Waiting for money to reflect in an account should be synonymous with first time tobacco farmers and not seasoned growers.

Record keeping enables farmers to control their budgets and to review planned costs against actual costs and as a result a farmer is able to pinpoint the causes of variance.

Like any other business, tobacco farmers would in turn be able to manage costs of production whilst striving to produce good quality tobacco thereby bringing about positive variance and increasing total revenue.

Record keeping will also enable farmers to do a simple trend analysis over a couple of years in order to detect a general pattern from one season to another. It is in the farmer’s interest to review indicators which show whether or not they are improving from one season to the next as this will help in making of decisions on whether to maintain current practices or to change depending on whether the farming business is progressing or the trends are negative.

Whilst TIMB releases national statistics with average yield per hectare, average national prices, and comparisons for different years and so on, record keeping will enable farmers to do an analysis of their performance at an individual level.

A farmer who looks for a loan from a financial institution or who approaches a contractor with such information at their fingertips is more likely to succeed.

As we prepare for the 2017 tobacco season, this is the best time to start keeping records.

For additional Information contact TIMB at 429 Glen Eagles Road, Southerton, Harare or write to us on PO Box 10214, Harare or on telephone numbers 0772145166 /9 or 0279-22082 /21982 or 025-3439 or 067-24268 /29246 or 0277-2700 or 064-7280 or 0271-6772 or Toll Free Number 0731999999 or E-mail: [email protected]