Zimbabwe’s tobacco farmers are anticipating that leaf prices in the course of the 2016 selling season will be much better as compared to the last season, based on a story in The Herald.
Manufacturing process is considered to be lower simply because of lesser plantings and a drought, whilst the top quality of the tobacco that has been cultivated is stated to be higher.
Zimbabwe Commercial Farmers Union president, Wonder Chabikwa, stated farmers were wanting for stronger prices this season depending on the economics of supply and demand.
“We are anticipating a decreased tobacco crop this time of year caused by poor rains and lower prices supplied at auction floors a year ago,” he was quoted as stating. Drought has led to the decrease of the crop.
“We also hope the use of the e-auction method will bring in order, which may weed out class B buyers who led to bad auction prices,” he added.
However, Tobacco Industry Development Support Institute executive director, Jeffrey Takawira, explained that while there was a substantial likelihood that this year’s tobacco volumes would be reduced in comparison to those of last season, it did not always follow that there would be a boost in the price of tobacco at the auction floors.