Story by Owen Mandovha, Business Reporter
TOBACCO farmers are optimistic that they will post good profits from this year’s season, pleading with the central bank to sustain currency stability to maintain profitability levels.
The start of the tobacco marketing season brings immense joy to farmers, with a record opening price per kilogramme of US$ 4.95 recorded this Wednesday, creating huge optimism among producers of the golden leaf.
“For us, this is our time to harvest and plan for the year. The starting price is encouraging, hence we look forward to a fruitful season,” a tobacco farmer said.
“I have full confidence that we will get good prices and also see this as a huge benefit since prices have started strong,” a farmer said.
“Farmers require consistency when it comes to pricing and the onus is in companies to maintain fairness and best practice so that we enjoy good profits,” another farmer said.
According to tobacco stakeholders, there should not be any anxiety among farmers over the new 70-30 percent retention threshold for earnings in the wake of the RBZ’s strides in maintaining stability of the ZiG currency.
“We are not at all bothered by the changes in retention because what farmers are concerned about is the fluctuations in the rates, but at the moment, the governor has been able to maintain stability which will be good for them,” the president of Zimbabwe Tobacco Growers Association Mr George Seremwe said.
“The starting price of US$4.95 per kilogramme is a huge feat and our faith in the central bank to maintain stability means that farmers will remain cushioned by the ZiG stability,” Premier Tobacco Auction Floor’s executive, Mr Owen Murumbi said.
The tobacco industry’s transformation is getting more admirers including the Zambia Tobacco Board, which was represented at the official opening ceremony.
“The transformation of the local tobacco industry continues to earn more admirers including us Zambia because the tobacco sector continues to inspire us as a country and we have a lot to learn as we strive to transform our industry,” Zambia Tobacco Board’s Chief Executive Officer, Mr Phil Daka said.
The Zimbabwean economy requires foreign currency to support its growth and also create the much-needed foreign currency reserves at the central bank, hence government has pledged to formulate policy that supports farmers, referring to them as the geese that lay golden eggs.
