Tobacco farmers earn $75m

Published: 21 June 2015

Tobacco farmers have so far earned $75 million from the sale of 28,4 million kilogrammes (kg) of the golden leaf since the opening of the 2015 selling season last month.

Figures released by the Tobacco Industry Marketing Board (TIMB), however, show the income has declined by nine percent from $96, 8 million earned in the corresponding period last year after the auctioning of 31,4 million kg.

The tobacco industry regulator said 8,1 million kg of tobacco was sold at the country's three auction floors while 20,2 million kg was sold under contract farming.

Of this total, about 2,3 million kg were sold at Boka Tobacco Auction Floors, 3,9 million kg at Tobacco Sales Floor and the remaining 1,9 million kg being bought at Premier Tobacco Floor.

Figures indicate that the average price of tobacco at the auction floors currently stands at $2, 15 per kg while the contract has recorded $2, 84 per kg. This consequentially gives a 14,2 percent discrepancy compared to last season's prices.

TIMB also noted that about 11, 26 percent of the bales delivered so far were rejected, a 7,13 percent increase compared to the bales rejected prior period comparative.

Meanwhile, figures released for Week 12 indicated that during the week which ended March 27, 2015, the country earned $218 million from the export of 33,1 million of flue-cured tobacco.

The figures also indicated that 32 countries had imported the golden leaf, with the current export earnings and volumes significantly above 2014 prior comparable period figures.

For the same period last year, 15,3 million kg had been exported at $56 million at an average price of $4 per kg.

This season, the leaf quality was affected by low rainfall. China continued to dominate the country's tobacco exports.
- dailynews

Tags: Tobacco,