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The Zimbabwe Anti-Corruption Commission (ZACC) has arrested the Tobacco Industry Marketing Board (TIMB) chairperson, Patrick Devenish, and the organisation’s chief executive officer Meanwell Gudu.
Devenish and Gudu appeared in court on Saturday, charged with criminal abuse of office. They were remanded in custody until Monday, August 26, for a bail application hearing before Harare regional magistrate Sandra Mupindu.
The duo are accused of extending a $397,000 loan to a local company owned by Itayi Masuka, without the knowledge or approval of other TIMB board members.
According to the State’s case, in May 2021, Devenish and Gudu, acting in common purpose and with the intention to defraud TIMB, granted the loan to Ultimate Accolade (Private) Limited, owned by the Masuka family.
They allegedly misrepresented that the loan was being provided under the Tobacco Inputs Credit Scheme funded by the Reserve Bank of Zimbabwe (RBZ), despite being aware that the RBZ’s funding for this scheme had been discontinued.
It is further alleged that Gudu, while out of the office, instructed the special projects manager to have the loan contracts signed by the acting chief operations officer, Blessing Dhokotera, who believed the loan was part of the legitimate Tobacco Inputs Credit Scheme.
As a result of this misrepresentation, the full $397,739.51 loan was disbursed to Ultimate Accolade (Private) Limited.
However, from 2021 to 2023, no significant effort was made to recover the debt, until the current acting CEO brought the issue to the board’s attention late last year.
The board then tasked the executive management to recover the debt, but so far, only $16,000 has been recovered out of the total $539,650.50, including interest.
Gudu’s arrest comes a day after he was acquitted by the Harare Magistrate Court of all charges related to the alleged misappropriation of over $2 million.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Two bosses from TIMB are in trouble for doing bad things. They gave a big loan without permission. They said the loan was from a special fund, but it wasn't true. They didn't try to get the loan money back for a long time. Only a little bit has been recovered. One boss got arrested, but was let go before. They will go to court to see if they can get out of jail. People are not happy with them for what they did.

Two TIMB Bosses Remanded In Custody On Corruption Charges

Former Tobacco Industry and Marketing Board (TIMB) CEO, Meanwell Gudu, was acquitted of all charges related to criminal abuse of office on Friday, August 23.
Gudu had been arrested and accused of misappropriating over US$2 million. He appeared before Harare magistrate Marehwanazvo Gofa, along with co-accused Stuart Shanyika, TIMB’s former head of special services, and Andrew Matibiri, a retired former TIMB CEO.
The trio was arrested by the Zimbabwe Anti-Corruption Commission (ZACC) on September 6, 2022, and first appeared before the Harare Magistrate Court on September 8, 2022.
The state alleged that in the 2017-2018 farming seasons, the Reserve Bank of Zimbabwe had introduced a tobacco financing facility to support small-scale tobacco farmers with inputs and working capital.
A memorandum of agreement was signed on September 10, 2018, between the RBZ, AFC Commercial Bank, and TIMB.
The RBZ was the provider of the funds for the facility, AFC Commercial Bank was the agent and TIMB was the borrower.
However, the court heard that the three accused persons allegedly entered into private agreements with other tobacco contractors, handpicking them in a corruptly designed deal to support the firms with inputs from the TIMB loan.
As a result, the RBZ was allegedly prejudiced of US$2 million, and nothing was recovered.
The matter was heard at the Magistrate Court on Thursday, nearly two years after the arrests, and the charges were ultimately withdrawn before a plea was entered.
Gudu joined TIMB in 2008 as a technical services executive and was appointed CEO in April 2021, following the retirement of the then-CEO Matibiri.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Former TIMB CEO, Meanwell Gudu, was accused of taking money but has been found not guilty. The case was about $2 million for tobacco farmers that went missing. Gudu and others were accused of making deals with specific companies instead of helping all the farmers. The court said the charges were not true, and Gudu is now free. The case started in 2022, but after two years, it was dropped. Gudu has been working in TIMB for a long time and became CEO in 2021.

Former TIMB CEO, Meanwell Gudu, Acquitted Of Corruption Charges

The 2024 tobacco marketing season opened in Harare on Wednesday, 13 March, with the first bale going under the hammer for US$4.92 per kilogramme up from US$4.35 registered on day one last year.
Speaking at the official opening of this year’s tobacco marketing season, Vice President Constantino Chiwenga expressed optimism that deliveries will be high despite the current drought. He said (via <a href="https://www.herald.co.zw/tobacco-silver-lining-amid-drought/">The Herald</a>):
<blockquote>
I am happy that the estimates which I have been given, regardless of the difficult year we have all experienced, will not go down below those of 2021, the figures will be hovering above.
While we will not get the 300 million kg we wanted, I am happy that the irrigated crop has proved to be good. The 2024 season is looking good, we will recover.
Government regards the tobacco industry as a sector with great potential to grow and increase our country’s export earnings.
This realisation led to the launch of the Tobacco Value Chain Transformation Plan.
</blockquote>
Tobacco production is this year expected to be around 265 million kilogrammes, below last year’s 296 million kg due to the El Niño-induced drought.
Tobacco Industry and Marketing Board (TIMB) chairman Patrick Devenish revealed that this year 113 101 hectares were planted compared to 117 645 hectares last year and registered growers had decreased to 115 114 from 148 300 last year. He said:
<blockquote>
The Board has also approved decentralised contract sales to be conducted at five designated centres and these are Karoi, Mvurwi, Bindura, Marondera and Rusape.
This season, RBZ (Reserve Bank of Zimbabwe) advised that the foreign currency retention for tobacco is 75 per cent in line with the retention level for other market players.
Despite our efforts to restore order and sanity in the industry, we are still grappling with the challenge of growers who continue to cut down indigenous trees for curing tobacco.
The cutting down of indigenous trees is attracting a lot of negative attention from the global market, with some threatening to stop partnering with us.
To alleviate this challenge, the board has partnered with Hwange Colliery and Kutsaga to provide tobacco farmers with discounted coal for curing.
</blockquote>
This year two auction floors; Tobacco Sales Floor and Premier Tobacco Auction Floors, have been licenced by TIMB.
The floors handle deliveries of tobacco not grown under contract and help create the pricing system that then applies to the contracted crops, with adjustments up and down for quality.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Tobacco Marketing Season Kicks Off At US$4.92 Per Kg

The Tobacco Industry and Marketing Board (TIMB) says tobacco output is predicted to fall to 265 million kilogrammes this season, from 294 million kilogrammes recorded the previous season.
Speaking to the <a href="https://newsday.co.zw/theindependent/local-news/article/200024083/drought-hits-tobacco-output">Zimbabwe Independent</a>, TIMB public affairs officer Chelesani Tsarwe, also said the number of tobacco growers had dropped as a result of the prevailing drought. She said:
<blockquote>
From the crop assessment exercise undertaken, which is a national tobacco forecasting exercise which helps us determine the national yield and production, the board anticipates a yield of 265 million kilogrammes.
(This) is a consequence of the El Niño conditions witnessed in southern Africa starting late last year.
</blockquote>
Tsarwe said farmers will receive 75% of their payments in US dollars this season, with the remainder payable in Zimbabwe dollars. She said:
<blockquote>
When it comes to payment of growers, the board is guided by the Reserve Bank of Zimbabwe (RBZ).
For this season, RBZ advised that the foreign currency retention for tobacco growers for the 2023/24 tobacco marketing season was standardised at 75% in line with the retention level for other market players.
Given that the 25% to be paid to tobacco growers in local currency is applied to the net sales proceeds after the settlement of all the loans, levies and other marketing costs, the net effect of this arrangement is that the tobacco grower shall effectively have a foreign currency retention which is higher than 75%.
</blockquote>
Tobacco is one of Zimbabwe’s biggest foreign currency earners. This year’s marketing season will commence on Wednesday next week.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Drought: Tobacco Output Anticipated To Fall

Tobacco farmers have demanded that the reafforestation programme should be expedited amid indications that only 4 500 hectares of gum trees have been planted since collection of the levy started in 2015.
The current sluggish reforestation efforts may make Zimbabwe’s tobacco less appealing on global markets that now favour products produced using sustainable methods.
As reported by <a href="https://www.herald.co.zw/tobacco-farmers-demand-answers-on-us46m-afforestation-levy/">The Herald</a>, Zimbabwe Tobacco Association (ZTA) chief executive officer Rodney Ambrose said currently, 70 per cent of the tobacco produced in the country is cured using wood. He said:
<blockquote>
It’s now almost 10 years since TIMB started collecting an afforestation tax of 0.75 per cent from growers with over US$40 million collected and very few afforestation programmes taking place.
Afforestation programmes are critical to the sustainability of Zimbabwe’s tobacco production and markets, as close to 70 per cent of the crop is cured using wood.
</blockquote>
In the 2015 national budget, the Government re-introduced the tobacco levy on tobacco growers at a rate of US$0.015 per dollar of the selling price.
The funds generated from the levy are meant for financing re-forestation activities.
In the 2016 national budget, the tobacco levy was slashed by half to 0.75 per cent due to El Nino and has remained on that level until now.
Calculation of statistics from TIMB shows that over US$46 million has been collected since 2015.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Tobacco Farmers Want Afforestation Programme To Be Expedited

The Tobacco Industry and Marketing Board (TIMB) has said the 2024 tobacco marketing season opens on 13 March for the traditional auction floors, while contract floors will open the following day.
In a recent statement announcing the opening of the tobacco marketing season, the TIMB encouraged tobacco stakeholders to fully utilise the TIMB booking system. It said:
<blockquote>
All stakeholders are advised that the 2024 auction tobacco marketing season opens on Wednesday, March 13, 2024. Contract tobacco sales will begin on Thursday, March 14, 2024.
All tobacco stakeholders are encouraged to fully utilise the TIMB booking system. Book your tobacco today and sell it tomorrow.
</blockquote>
However, depressed volumes of tobacco are anticipated this season following a significant reduction in both the number of growers and planted area due to the El Nino-induced drought.
Speaking to <a href="https://www.manicapost.co.zw/tobacco-marketing-season-opens-mid-march/">The Manica Post</a>, Shupikai Mvurumutiya of Chikundu, Odzi, said the quality of tobacco for most small-holder farmers is poor. He said:
<blockquote>
It is not looking good and a bit far below the standards witnessed last season. We are not seeing the kind of tobacco leaf we are used to in Odzi.
We can only talk of a good leaf to those farmers who either planted early, have irrigation facilities or planted their crop near vleis.
</blockquote>
The Tobacco Industry and Marketing Board said 115 114 growers were registered this season across the country, compared to 148 300 growers last year.
This season farmers across the country planted 113 101 hectares, compared to 117 645ha last season, giving a negative variance of four percent.
TIMB also announced that growers will be paid 75 per cent of their earnings in foreign currency while the remainder will be in Zim dollars.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

2024 Tobacco Marketing Season Opens Mid-March

The tobacco auction floors will be closed on 31 July, officially marking the end of the 2023 tobacco selling season, the Tobacco Industry and Marketing Board (TIMB) has said.
In a statement issued on Monday, 24 July, TIMB said final mop-up sales for the auction system would take place on 30 August. It said:
<blockquote>
After consultations with all stakeholders, the Board wishes to advise that the official date of closure for the 2023 auction floors is 31 JULY.
However, growers will still be able to sell their auction tobacco through a mop-up sale.
The final auction clean-up sales will be held on Wednesday 30 August 2023.
</blockquote>
TIMB said contract sales will continue to operate until such a time when individual contractors have fully received all their tobacco.
According to statistics released by TIMB on day 92 of sale, a total of 291.1 million kg of tobacco worth US$882.2 million had been sold at an average price of $3.03 per kilogramme.
Of the total volume of tobacco sold to date, 271.2 million kg were sold via the contract system while the remainder went under the hammer.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Tobacco Selling Season Ends On 31 July

The Tobacco Industry and Marketing Board (TIMB) has blocked at least 448 farmers from selling tobacco at auction floors on allegations of side marketing their crop, reported <a href="https://www.zimlive.com/timb-blocks-448-tobacco-growers-for-side-marketing/">ZimLive</a>.
Side marketing is when growers sell their produce to third parties in breach of contractual agreements that bind producers to sell their yield to the contractor who would have provided inputs to the grower.
Side marketing also occurs when an individual sells tobacco on behalf of another.
There are varied reasons why side marketing of crops is now rife in the market but it mainly stems from lower producer prices set by the government and the contractors.
The government outlawed side marketing through Statutory Instrument 77 of 2022 in a bid to protect contracting companies from dealers.
In a statement, TIMB said the growers were blocked from selling their produce after noting unusual activity on the tobacco selling system. Reads the statement:
<blockquote>
We have blocked 448 grower numbers on strong suspicion of tobacco-side marketing.
We interrogated the tobacco selling system, according to sales points, looking for irregular activity that strongly indicates the illegal practice and these growers are the alleged offenders.
The blocked grower numbers had sold tobacco five times or more in only 13 days of the 2023 tobacco marketing season.
It is illogical and cost-ineffective to bring 20 bales to market on a Monday; then bring 10 on Wednesday and 15 on Friday the same week only to bring similar amounts of tobacco in the following week.
… We have blocked these growers from making more sales to make sure we only have legitimate tobacco farmers selling.
</blockquote>
The TIMB advised the individuals with blocked grower numbers to approach their offices with their sale sheets to establish whether they are bona fide tobacco growers selling their own produce or not. It added:
<blockquote>
We will also send our technical team for farm visits to verify by physically inspecting the respective farms and if they are legitimate growers, we will unblock their grower numbers.
</blockquote>
At least 49.4 million kilogrammes of tobacco valued at US$148.5 million have so far been sold through the auction and contract systems at an average price of US$3 per kg.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

448 Farmers Blocked From Selling Their Tobacco

The 2023 tobacco marketing season officially opens today, 08 March 2023, with the contract floors set to open tomorrow.
The official opening ceremony will be held on Wednesday morning at the Tobacco Sales Floor (TSF) where Vice President Constantino Chiwenga is expected to officiate.
Two auction floors, that is, Tobacco Sales Floor (TSF) and Premier Tobacco Auction Floors (PTAF), have been licenced by the Tobacco Industry and Marketing Board (TIMB).
This season, tobacco farmers will be paid 85 percent of their sales proceeds in foreign currency and the remaining quarter in Zimbabwe dollars.
The 85 percent will be paid directly into the growers’ foreign currency accounts and this is treated as free funds.
The 15 percent local currency will be deposited into the growers’ local bank accounts or e-wallets.
Tobacco Farmers Union Trust president, Victor Mariranyika told <a href="https://www.herald.co.zw/tobacco-marketing-season-starts-today-4/">The Herald</a> that this season’s yield is expected to be better than last season. He said:
<blockquote>
This year’s yield will be better than the previous season’s due to the implementation of best agronomic practises.
In terms of agronomic practices, the farmers have been and are looking after the crop very well, from seedbed to the auction, and we don’t expect any damage to the tobacco as a result of the rains.
The area under tobacco has increased this year because of the incentives the farmers have received from Government.
</blockquote>
Farmers were expected to be fully vaccinated to gain access to the floors, that is, should have received at least two doses.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Tobacco Marketing Season Set To Start Today

The Tobacco Industry and Marketing Board (TIMB) has refuted a report claiming that it had banned Voedsel from contracting farmers this year allegedly over the company’s failure to pay farmers for the past two years.
According to a report by <a href="https://www.herald.co.zw/timb-bans-voedsel-from-contracting-tobacco-farmers/">The Herald</a>, Voedsel, which has buying facilities in various tobacco-growing regions including Rusape, Marondera and Karoi, was declared an “unsuitable player” by the TIMB.
The publication quoted a source as saying, “Voedsel won’t be participating this year because they owe huge amounts of money to tobacco growers.”
However, in a statement issued on Tuesday, 08 November 2022, TIMB acting CEO Emmanuel Matsvaire said Voedsel remains operational. He said: 
<blockquote>
TIMB wishes to advise that Voedsel Tobacco is a tobacco merchant company involved in contract farming, buying and exporting of processed tobacco and is not a surrogate of any other local merchant.
They have a valid contract and Class A licenses which permit them to participate in both contract and auction floor buying platforms for the 2022/2023 season.
Currently, Voedsel Tobacco is compliant with all TIMB regulations and has no pending issues before the Board.
</blockquote>
Voedsel itself had released a statement earlier in the day advising stakeholders that it remained operational, contrary to reports. | <a href="https://www.herald.co.zw/voedsel-remains-operational/">The Herald</a>

TIMB Says Voedsel Remains Operational

The Tobacco Industry and Marketing Board (TIMB) has reportedly banned Voedsel from contracting farmers this year after it failed to pay farmers for the past two years.
According to a report by <a href="https://www.herald.co.zw/timb-bans-voedsel-from-contracting-tobacco-farmers/">The Herald</a>, Voedsel, which has buying facilities in various tobacco-growing regions including Rusape, Marondera and Karoi, was declared an “unsuitable player” by the TIMB.
Voedsel was among the major financiers of tobacco under contract schemes.
A TIMB official who declined to be named as a result of not being authorised to talk to the press told The Herald:
<blockquote>
Voedsel won’t be participating this year because they owe huge amounts of money to tobacco growers.
In fact, the deadline for contracting farmers was October 31, (2022) and November 31, is the deadline for disbursing the inputs.
</blockquote>
Meanwhile, Tennyson Hwandi, a director at Vodsale blamed “white-owned companies” for working against indigenous tobacco merchants. He said:
<blockquote>
Big tobacco companies are being threatened by black-owned tobacco companies, and Voedsel being one of the major players, has been a target.
They are determined to see us closing down. We are already giving our farmers inputs.
</blockquote>
Another TIMB official was quoted as saying, “if it is true that they are issuing the inputs, it is very illegal because we have not licensed them.”

TIMB Bans Voedsel From Contracting Tobacco Farmers | Report

Zimbabwe has so far exported tobacco valued at US$557.11 million, which is a 21% rise from US$462.29 million reported in the same period last year.
According to the latest Tobacco Industry Marketing Board (TIMB) report, as of 8 October 2022, Zimbabwe had exported 122.92m kilogrammes (kg) of tobacco compared to 115.70m kgs in the same period in 2021.
Most of Zimbabwe’s semi-processed tobacco is exported to the Far East, the European Union, Africa, the Middle East, Europe and the Americas.
The TIMB also revealed that the prices of the golden leaf on the international market firmed to US$4.53 per kg in 2022 from US$4.00 per kg in 2021. Part of the TIMB report reads:
<blockquote>
As of Friday, October 8, 2022, the country’s tobacco export receipts stood at US$557.1m from US$462.2m realised same period last year.
The mass also improved to 122.92m kg from 115.70m kg in the same period last year with average prices also going up to US$4.53/kg from the US$4/ kg comparable period last year.
… Sales to the Far East earned US$485.2m followed by the European Union whose sales raked in US$118.4 and Africa’s US$102.3m.
</blockquote>
In 2021, Zimbabwe earned US$819.7 million after exporting 183.6 million kg of tobacco.
However, according to TIMB, for every US$1 earned, US$0.85 is going to merchants with farmers earning US$0.15.
Approximately more than 90% of the tobacco farmers in Zimbabwe are under tobacco merchants’ contracts.
Tobacco used to be the leading foreign currency earner for Zimbabwe but over the years, it has been overtaken by gold, platinum and diaspora remittances. | <a href="https://businesstimes.co.zw/zim-rakes-in-us557-11m-from-tobacco-exports/">Business Times</a>

Zimbabwe Earns US$557.11 Million From Tobacco Exports

More than 121 000 tobacco growers have so far registered for the 2021/22 season, the Tobacco Industry and Marketing Board (TIMB) has revealed.
Of those who have registered, 66 868 are communal farmers, 41 487 are A1 farmers, with A2 farmers being 6 911 and 6 544 farmers are from the small-scale sector.
Meanwhile, 144 529 farmers had registered during the same period last year. This shows that the number of registered growers has fallen by 19 per cent this year when compared to last year.
Statistics availed by TIMB show that the number of farmers registering for the first time has declined by 196 per cent from 1 716 last year, to 580 so far this year.
TIMB’s stricter grower vetting process and challenges being faced by the industry have been cited as the factors behind the sharp decline.
<h4>More: <a href="https://www.herald.co.zw/120k-register-to-grow-tobacco/">The Herald</a></h4>

Number Of Registered Tobacco Growers Falls

The “collapse” of the local tobacco auction system has created a pricing problem with some arguing that minimum auction prices should not continue to determine the pricing of contract tobacco.
Zimbabwe has a dual marketing system where tobacco is sold through both auction and contract and has over the years been using the minimum price paid on the auction market for pricing the crop.
The pricing model was based on the fact that about half of the total output was being sold through the auction but of late, about 95 percent of farmers were funded by contractors, therefore, tobacco likely to be <a href="https://news.pindula.co.zw/2019/05/21/tobacco-sales-remain-stressed-at-this-years-auction/">sold via the auction floors will be very little.</a>
The collapse of the auction system prompted some stakeholders to argue that it would be absurd to continue applying the policy as the tobacco farming landscape has completely changed. 
Zimbabwe Tobacco Association (ZTA) chief executive officer Mr. Rodney Ambrose said:
<blockquote>
Pricing of contract tobacco (95 percent of national production) cannot continue to be based on the minimum of tobacco prices paid on the auction floors (5 percent of national production).
This is outdated legislation that needs to be speedily changed by the authorities.
</blockquote>
Ambrose’s sentiments were echoed by Dr. Andrew Matibiri, the Chief Executive Officer (CEO) of the Tobacco Industry and Marketing Board (TIMB) who believes it is “unfair” for a small crop size of “lower quality (to) determine” the minimum grade price of tobacco.
Dr. Matibiri added that the TIMB board had agreed that something needs to be done.
Meanwhile, Zimbabwe Farmers’ Union executive director Mr. Paul Zakariya told The Sunday Mail Business in an interview that abandoning the current dual marketing system would leave farmers exposed to potential price manipulation by contractors. Mr. Zakariya said:
<blockquote>
We can’t just throw away this important tool of price discovery. The competition at the auction is quite important . . .
</blockquote>
Zakariya’s sentiments were supported by Mr. Carlos Tadya, an analyst with a local research firm, said the Government should “seriously consider” funding tobacco to avoid a total collapse of the auction system.
More: <a href="https://www.sundaymail.co.zw/tobacco-pricing-headache">The Sunday Mail</a>

"Collapse” Of Tobacco Auction System Triggers Pricing Headache

The 2021 tobacco marketing season will open on 7 April, an official has revealed.
In a letter addressed to stakeholders, Tobacco Industry Marketing Board (TIMB) chief executive, Andrew Matibiri said:
<blockquote>All stakeholders are advised that the 2021 auction tobacco marketing season opens Wednesday, April 7, 2021. Contract Tobacco Sales will open on Thursday, April 8, 2021.</blockquote>
Normally, the tobacco marketing season opens in February, but the coronavirus crisis could have affected the dates for this year.
Meanwhile, tobacco farmers will be paid 60 per cent of their proceeds in foreign currency, with 40 per cent being in local currency.
Last year farmers were paid 50 per cent of their proceeds in US dollars with the other 50 per cent being in Zimbabwe dollars.
Responding to questions in Parliament recently, Lands, Agriculture, Fisheries, Water and Rural Resettlement Minister, Anxious Masuka, said:
<blockquote>The Reserve Bank has put in measures to the effect that there is going to be the same treatment to everyone who is exporting produce so that tobacco farmers are happy because they are going to get 60 per cent of the US dollar component.</blockquote>
In 2020, tobacco farmers were not happy after the RBZ insisted on paying for their crop using the official exchange rate of US$1: ZWL$25, which was prevailing at the time.
Currently, the official exchange rate is at US$1:Z$84 but far below the alternative exchange rate of US$1:Z$120.
<h4>More: <a href="https://www.herald.co.zw/just-in-tobacco-marketing-season-starts-april/" rel="noopener" target="_blank">The Herald</a></h4>

Tobacco Marketing Season Starts On 7 April

Tobacco deliveries by the time the season was officially closed on 28 August had reached 181 million kgs, The Herald reports.
This was reportedly revealed in a TIMB statistical report that stated that 181 million kilograms of tobacco grossed US$454,2 million during the Tobacco Marketing season. More statistics released by TIMB about the 2020 Tobacco season states that:
<blockquote>The crop received so far is 24 percent less than the 243,6 million kg worth US$486,7 million that had been sold by farmers during the same period last season.
On day 93, farmers had sold 172,3 million kg of tobacco worth US$428,5 million through the contract floors, while auction floors sold a cumulative 9,1 million kilogrammes of tobacco worth US$25,7 million.
The highest price offered by buyers at the auction floors remained at US$4,99 per kg, while that of the contract floors was US$6,60 per kg.</blockquote>
TIMB also said the auction floors this year due to COVIV-19 containment measures did not sell huge volumes of the crop.
More: <a href="https://www.herald.co.zw/tobacco-deliveries-top-181-million-kg/">The Herald </a>

Tobacco Deliveries Pass The 180 Million KGs Mark

TIMB has announced that the 2020 Tobacco Marketing season will commence on Wednesday 29 April. The short notice notifying stakeholders about the onset of the season reads:
<blockquote>START OF THE 2020 FLUE-CURED TOBACCO MARKETING SEASON
• All stakeholders are advised that the 2020 AUCTION TOBACCO MARKETING SEASON starts on WEDNESDAY 29T” APRIL 2020.
• CONTRACT TOBACCO SALES will start on THURSDAY 30Th APRIL 2020.
• Sales bookings and deliveries will open on MONDAY 27TH APRIL 2020.</blockquote>
Meanwhile, <a href="https://zero.pindula.co.zw/tobacco-auction-flows-to-be-decentralized-this-year/">the government has decentralised auction floors</a> following the outbreak of COVID-19 which has claimed the lives of 4 people in Zimbabwe so far and killed close to 200 000 people globally.
The marketing season had been delayed to give farmers more time to prepare due to the erratic rains experienced in the 2019/2020 farming season and the 2019 drought.
Source: <a href="https://twitter.com/ZBCNewsonline/status/1253745079694524418?s=20">Twitter </a>

2020 Tobacco Marketing Season To Start On 29 April - TIMB

Some farmers have abandoned tobacco farming and opted for other cash crops such as cotton and maize due to a myriad of challenges especially around the marketing of the “golden leaf”.
The major drawback has been falling tobacco prices at the auctions floors, with a significant number of farmers briefly suspending deliveries and sales just a few days before the opening of the 2019 marketing season in protest.
Farmers were protesting the payment method that had been introduced by the <a href="https://www.pindula.co.zw/Reserve_Bank_of_Zimbabwe" rel="noopener noreferrer" target="_blank">Reserve Bank of Zimbabwe (RBZ)</a> where they were paid their dues half forex and half <a href="https://www.pindula.co.zw/RTGS_Dollars" rel="noopener noreferrer" target="_blank">RTGS dollars</a>.
According to the <a href="https://www.pindula.co.zw/Tobacco_Industry_Marketing_Board" rel="noopener noreferrer" target="_blank">Tobacco Industry and Marketing Board (TIMB)</a>, by November 29, 2019, a total of 140 257 farmers had registered to grow tobacco for the 2019-20 season. This translates to a 15 per cent decline from last season’s 165 130 farmers.
Furthermore, the number of farmers registering for the first time to grow tobacco had fallen by 80 per cent from 36 117 farmers in 2018 to the current 7 355.
Dryland tobacco farming has also been negatively impacted, with a total of 23 365 hectares having been planted as of now, while last year a total of 25 665 hectares had been planted during the same period last year.
<h4>More: <a href="https://www.herald.co.zw/woes-stalk-tobacco-industry/" rel="noopener noreferrer" target="_blank">The Herald</a></h4>

Golden Leaf Hectarage Shrinks

Tobacco sales in the first 10 days of trading at the auction floors have declined sharply by 85%. The Tobacco Industry and Marketing Board (TIMB) statistics show that $2.8 million worth of tobacco had been sold in the first days. Last year $30.2 million worth of tobacco had been sold in the same period.
Other stats:
<ul>
<li>Only 1.6 million Kgs were delivered, compared to 10.9 million Kgs in the same period last year.</li>
<li>Average price of $1,73 per kg compared to last year’s average of $2,77 per kg</li>
</ul>
A tobacco company official spoke to the <a href="https://www.newsday.co.zw/2019/04/tobacco-sales-plunge-85/">NewsDay</a>:
<blockquote>Farmers are not in a hurry to sell. There is also inconsistent policy regarding access to and determination of 50% USD entitlement. Most contractors are yet to start receiving their tobacco. Many were waiting for the circular.</blockquote>
Last week, government-controlled media claimed that sales were now up after an intervention by the finance minister Mthuli Ncube.
<h3>Related:</h3>
<ul>
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<h4><a href="https://news.pindula.co.zw/2019/04/02/removal-of-2-tax-from-tobacco-transactions-pays-off/" rel="bookmark">Tobacco Sales Increase Slightly After Removal Of 2% Tax</a></h4>
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<h4><a href="https://news.pindula.co.zw/2019/04/05/warning-shots-fired-on-errant-tobacco-merchants-and-middlemen/" rel="bookmark">Warning Shots Fired On Errant Tobacco Merchants And Middlemen</a></h4>
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<h4><a href="https://news.pindula.co.zw/2019/03/25/mthuli-shiri-called-by-parliament-to-explain-furore-over-tobacco-payments/" rel="bookmark">Mthuli, Shiri Called By Parliament To Explain Furore Over Tobacco Payments</a></h4>
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More: <a href="https://www.newsday.co.zw/2019/04/tobacco-sales-plunge-85/">NewsDay</a>

Tobacco Sales Down 85%

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