Virginia tobacco sales top 185m kgs

Published: 14 June 2014

Virginia tobacco deliveries have surpassed the 185 million kilogrammes target set for this year with indications that the figure could reach 200 million kg before the marketing season ends.

Tobacco Industry and Marketing Board chief executive Dr Andrew Matibiri said that there is about 18 to 20 million kg that are still to be delivered to the floors before the season ends soon.

"According to our projection there is 7 to 10 percent of the crop that is still to be delivered," he said.

This is the second time that a set target has been surpassed since tobacco production rebounded from a low of 55,6 million kg in 2006.

TIMB had to revise its target of 90 million kg upwards about three years ago as deliveries shot up to 123 million kg.

If deliveries reach the 200 million mark they will be just 36 million kg shy of the country's peak production figure of 236 million that was achieved in 2000.

Dr Matibiri said the peak production figure of 236 million kg was attainable if farmers keep the current momentum and get support.

"What is critical, however, is for banks to provide more funding to growers. We however want to pay tribute to our farmers who have been pivotal in us to meeting the 185 million kg target," he said.

Meanwhile, the 185 million kg which raised $588,6 million was 31,74 percent more than the 140,4 million kg that was sold during the same period last year.

However, average prices for the year at $3,18 per kg are 14,11 percent lower than the $3,70 per kg for the same period last year.

Of the 185 million kg more than 60 percent was sold under contract and the balance under the auction system.

A total of 137,8 million kg worth $458,7 million was sold under the contract system at an average price of $3,33 per kg while 47,1 million kg valued at $129,8 million was sold under the auction system at an average price of $2,75 per kg.

Contract sales are expected to continue beyond the official closure of this year's marketing season.

There has been a lot of interest in tobacco production by farmers in recent years as the crop is offering better returns than other crops.

To date, about 106 127 growers have registered for 2014 season compared to about 90 879 who had registered by the same period last year.
- The Herald

Tags: Tobacco,