Published: 14 May 2014

Tobacco auction floors say price differences and the high number of contract floors in the country are threatening their existence as 70 percent of the crop is now produced under contract.

Auction floors said since almost three quarters of the crop is now contracted the three auction floors are left to share 30 percent of the crop being produced through self-financing farmers.

Appearing before a Parliamentary Portfolio Committee on Agriculture, Boka Auction Floor chief executive Rudo Boka said there are now 14 contract floors.

She said the price disparities have seen the buyers setting the highest price under contract at $5,80/kg and the same buyers have set a price limit of $4,99/kg for auctioned tobacco.
- The Herald

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