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Edgar Vhera
Agriculture Specialist Writer
THE Tobacco Industry and Marketing Board (TIMB) has warned farmers against side-marketing saying the practice could ruin the season whose earnings and tobacco volumes had by Day 18 eclipsed last year’s records by 43 and 22 percent respectively.Farmers at both auction and contract floors have so far earned US$155 million from the sale of 44 million kilogramme of the golden leaf.

In a recent X (formerly twitter) post titled: ‘Stop side marketing and make tobacco farming business sustainable in Zimbabwe,’ TIMB said it had zero tolerance to side marketing.

“Side marketing is a form of contract default where contracted farmers sell their tobacco to third parties in breach of the contractual agreement, which states that tobacco shall only be sold to or bought by contractor who provided inputs to farmer,” said the post.

Among the advantages of selling tobacco to the contractor who provided inputs are prompt payment, fair buying price as set by the TIMB price matrix, arbitration and help from TIMB in cases of complications and business continuity.

The post also said cited the following as disadvantages of side marketing – low prices, late payments or total default with no arbitration, loss of property to debt collectors, risk of arrest and imprisonment, blacklisting and barring of grower number.

Meanwhile, latest statistics on the 2024 marketing season availed by TIMB show that farmers have so far earned US$154 542 653 against last year’s US$108 230 444.

In volume terms there was a 22 percent increase from 36 062 135 to 44 154 373 kilogrammes.

Contract floors account for 94 percent of the tobacco volumes after taking delivery of 41 380 270 kilogrammes while their auction counterparts stand at six percent with 2 774 103 kilogrammes.

Farmers have earned US$10 004 273 and US$144 538 380 under the auction and contract system respectively.

The average auction price has surged 18 percent from US$3, 09 per kilogramme on Day 1 to the current US$3, 61 while contract floors recorded a 13 percent rise from US$3, 09 by Day 2 to US$3, 49 by Day 18.

This year’s average auction price is higher than that for contract sales at US$0, 12.

A comparison of the 2023 and 2024 season shows that there is a 17 percent increase in average price from US$3, 00 to US$3, 50.

This season’s meticulous grading has borne a 36 percent decline in the number of bales rejected compared to the same period last year.

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.