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Tobacco farmers in the field

Business Reporter

FARMERS are unhappy over poor tobacco prices at auction floors despite the good quality crop and have sought to meet Tobacco Industry and Marketing Board to discuss the issue. Zimbabwe Farmers Union executive director Paul Zakaria said farmers have sought audience with TIMB and buyers, whom he said have not yet given the nod to the proposed meeting.He said that there is strong suspicion that buyers could be colluding on prices and there was need to investigate the matter, which threatens the future of gold leaf production in Zimbabwe.

This comes as it emerged that many farmers are holding on to their tobacco either in protest over grossly low prices or in anticipation that the prices will improve as the season progresses.

Mr Zakaria said it is astonishing that tobacco prices this season have averaged $2,50 to $2,60 per kilogramme despite the fact that the crop is of the highest quality seen in recent years.

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The ZFU president said that the lowest price given for the tobacco has been 10 cents per kilogramme, a price he said may not be offered even for the lowest quality tobacco grade.

Auction floors have registered the highest price of $4,99 per kilogramme since the beginning of the selling season while the highest price at contract floors is at $5,60/kg.

“The price of tobacco is one huge disappointment and farmers have scheduled meetings so that we can sort out the issue. We need to have meetings with TIMB and buyers, but we are yet to get the nod in terms of the buyers,” he said.

Allegations of potential price collusion among buyers have erupted again despite efforts put in place to curtail unscrupulous buyers from entering the auction floors.

Efforts to get comments from TIMB chief executive Dr Andrew Matibiri and chairperson Monica Chinamasa were not successful, as they did not answer their cell phones.

But TIMB spokesman Isheunesu Moyo professed ignorance about the farmers request to meet both the marketing board and buyers to register their reservations over low prices.

Mr Moyo said that deliveries and prices were in fact better than last year at this point of the tobacco marketing season.

“I am actually surprised (that farmers want a meeting to discuss low prices) because the prices are better than last year. The prices are also dependent on the quality of the tobacco. I would not know what those farmers are talking about.

“The farmers have not approached us (yet). I do not think they will do that because they are happy about the prices this season. There deliveries are not low, we actually have more deliveries this season than last year and year to date the prices are 11 percent higher and deliveries 20 percent higher on last year,” Mr Moyo said.