Zimbabwe
Zimbabwe tobacco sales expected to dwindle next year

Misanet.com / IPS, 20 November - Zimbabwe, this year, sold a record tobacco crop of 236.8 million kg but will see a much reduced output next year as a result of work stoppages on farms invaded by veterans of the country's 1970s independence war.

According to Chris Molam, chief executive of the Zimbabwe Tobacco Association (ZTA), at the end of clean-up sales held at the Tobacco Sales Floor (TSF) Monday, 445.093 kg were sold at an average price of 67.39 US cents per kg. 

This brings the total seasonal mass sold to about 236.8 million kg with a value of 19.2 billion Zimbabwe dollars or 350 million US dollars. The record crop surpasses the 1993 and 1998 records of 218 and 215 million kg respectively.

Although this year's crop is a record high, it could have been higher were it not for disruptions on some tobacco farms by war veterans who invaded tobacco farms and burnt tobacco burns.

Since February, thousands of war veterans and landless blacks, have been invading white-owned commercial farms with the blessings of the government which says they are reclaiming their ancestors' land stolen from them by white colonial settlers.

The Commercial Farmers Union (CFU) complains that work stoppages continue country-wide. Work stoppages and free-for-all fast-track resettlement continue unabated virtually country-wide. 

On some farms, ploughing by invaders has taken place and maize is being planted in tobacco lands. In some cases, no planting has been allowed as yet. Irrigation piping has been stolen and workshop equipment has gone missing on some farms.

This, coupled with a shortage of finance on crops on farms listed for compulsory acquisition by the government to resettle millions of landless blacks, shortage of diesel, coal and foreign currency will see next year's crop reduced to 180 million kg.

However, minister of Lands, Agriculture and Rural Resettlement, Joseph Made, last week projected a tobacco crop of 220 million kg for the 2001 season.

Tobacco is the single most important export earner grossing in a third of all the earnings, and industry captains want the country to endeavor to retain that position as well as the worldwide reputation of excellence of tobacco production.

Although Zimbabwe is the second largest tobacco producer in the world after Brazil, Made fears its market share maybe lost to low cost producers as input costs continue to increase in Zimbabwe.

- Macro-economic instability, which is characterised by high inflation, high interest rates and high budget deficit, remain a major constraint, says Made. "This is reflected in the ever-increasing cost of essential inputs such as fertiliser, chemicals, labour, coal, electricity and fuel, with the new dimension of irregular supplies of fuel adding to the difficulties."

Made identifies another problem. "The world tobacco market is carrying an oversupply of both burley and flue-cured tobaccos... resulting in low auction prices which further erode viability."

- Uncertainty still prevails in the global industry as cigarette manufacturers continue to bear the brunt of legal challenges and increases on cigarette tax, adds Made.

Besides this and problems at home, the World Health Framework Convention on Tobacco Control poses another real danger to the international tobacco market through its attempts to reduce and eventually ban tobacco production health grounds.

- Zimbabwe and other tobacco producing countries must continue to fight vigorously against this initiative, says Made. Industry sources suggest that the fuel crisis will impact on next year's production substantially if the diesel shortage persists, since early land preparation have not been possible on the scale necessary.

Increased tobacco output could well turn out to be the main source of GDP growth in the Zimbabwe economy during 2001. But much will depend on how long the fuel crisis lasts. 

The refusal by commercial banks to lend farmers money this growing season, demanding guarantees that the farms will not be acquired by the government for resettlement, has further complicated the issue.

Kobus Joubert, president of the Zimbabwe Tobacco Association (ZTA), says he receives distress calls from his members on daily basis. To date, more than 1.500 farms have been gazetted for compulsory acquisition. According to Joubert, of the farms currently listed for acquisition, about a third grow tobacco. 

Tobacco growers also produce 82 percent of Zimbabwe's horticulture, one of the faster-growing export earners in Zimbabwe which has been touted as an alternative to tobacco.

By Lewis Machipisa

 

© IPS.    You can contact us at mail@afrol.com