Tobacco deliveries surpass target

Tobacco deliveries for the 2012 auction season have surpassed the revised target of 133 million kgs two weeks before the close of the marketing period on July 27. The initial output target of 180 million kgs was revised downwards early this year following a decline in the planted hectarage caused by lack of funding. Latest statistics from the Tobacco Industry and Marketing Board (TIMB) indicate that as of Thursday last week, deliveries had reached 134 million kgs generating $496,3 million in the process.

The crop was sold at an average price of $3,70 per kg. The $496,3 million earned so far indicated a 45% increase from $343 million during the same period last year. Close to 1,7 million bales had so far been sold compared to 1,6 million sold during the same period last year. To date, 77 218 bales have been rejected compared to 111 219 bales discarded at the same time last year. TIMB chief executive officer Andrew Matibiri said given this year’s performance, the board was set to revise next year’s target upwards.

“This shows that tobacco is still coming through. We have an idea on how much we are to revise upwards as the tobacco season ends on July 27 2012,” Matibiri said. In a circular to farmers, TIMB said the flue-cured auction tobacco clean-up sale would be held on Wednesday July 22. “Depending on the volume of deliveries, the clean-up sale may be continued for more than one day until all delivered tobacco has been sold,” reads part of the circular.

“Because of the volumes that are still being received, contract sales will continue until further notice. “Nonetheless, contracted growers are advised to finalise the grading and marketing of their tobacco.”