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Andrew Muvishi

Mash East Correspondent

Mashonaland East leading tobacco contracting company Voedsel is targeting to rake in US$75 million from tobacco sales. 

Good rains received in various parts of the country have brightened prospects of improved tobacco yields for many farmers. 

The Marondera-based tobacco auction floor is anticipating brisk business during this year’s tobacco selling season. 

Voedsel operations director Mr Tennyson Hwandi told The Herald recently that the company is expecting 25 million kilograms to go under the hammer at their auction floors this year from their 24 000 contracted farmers scattered across the country. 

“With average auction sales of between US$2,70 to US$3 per kg, we are very much confident of reaching our projected targets this year, given the good rains received in the country so far,” said Mr Hwandi. 

He further revealed that the stability of the local currency will enhance the value of farmers’ earnings. 

“The prices of major inputs such as fertilizer were stable this year which made it easier for our farmers to access the commodity without hassles,” he said. 

Hwandi said preparations for the forthcoming tobacco season were now at an advanced stage. 

“We are ready for the opening of the tobacco marketing season,” he said. “Even if it starts next week, we prepared.” 

With some farmers already reaping their crop, the company said it was already disbursing funds to their contracted farmers to enable them to meet their labour costs. 

Small-scale farmers are getting between US$150 to US$600, while commercial farmers are getting as much as they require from the company, which they will repay after selling their crop. 

“We are keen to improve earnings for our tobacco farmers,” Mr Hwandi said. “We want our farmers to earn better returns to help them improve their livelihoods. We do not want our farmers to incur huge debts that will reduce them to perpetual beggars. We want to empower them to transform their lives.” 

Voedsel is a local company which has been involved in the tobacco value chain through contracting small-scale farmers in various provinces such as Mashonaland East, Manicaland and Mashonaland West.

Tobacco is a major cash-cow for Zimbabwe and it generates an average of US$1 billion annually, helping the country to import fuel, pharmaceuticals and other key industrial raw materials.