Zimbabwe: Prioritise Quality to Get Higher Prices, Tobacco Farmers Told

As Zimbabwe gears up for the 2025 tobacco marketing season, the industry is poised for a significant increase in production, on account of favourable weather conditions, expanded hectarage and a growing number of farmers.

However, the anticipated surge in supply, coupled with other global market dynamics, is expected to exert downward pressure on prices, particularly for middle to low-end grades, analysts said.

Zimbabwe's 2024 tobacco season saw an output of 231,7 million kilogrammes of flue-cured Virginia tobacco, which fetched an average price of US$3,43 per kg, a 13,1 percent increase from the previous year.

For the 2025 season, the area under tobacco has expanded to 84 661 hectares, surpassing the 82 392 hectares planted in 2024.

With improved rainfall distribution and better agronomic practices, the national output is projected to reach 280 million kilogrammes, with some industry players optimistic about hitting the 300 million kg mark if favourable conditions persist.

Tobacco is one of Zimbabwe's biggest exports along with gold and platinum. The crop is also strategically important given it provides livelihoods to more than 100 000 households across the country.

Mr Tapiwa Masedza, a tobacco trading expert, noted that the global demand for tobacco remains robust, with many companies struggling to meet supply orders due to last year's reduced crop size.

However, the 2025 season is likely to see a significant increase in global supply, particularly from Brazil and Zimbabwe, which are the major competitors in flavour-grade tobacco.

Brazil, which produced 461,8 million kilogrammes in 2024, is expected to boost its output to at least 650 million kilogrammes in 2025.

This combined supply surge of over 220 million kilogrammes from both countries (Zimbabwe and Brazil) is projected to exert pressure on prices, especially for middle to low-end grades.

"China, the world's largest tobacco producer and consumer, continues to show strong demand for top-end grades, which may help stabilise prices for high-quality tobacco," Mr Masedza said.

However, the low to medium-end grades, which performed exceptionally well in 2024, are expected to face global price pressures.

"While the increased production is a positive development, farmers must brace for potential price declines," said Mr Masedza.

"To mitigate these challenges, we emphasise the importance of improving crop quality through better handling, curing and presentation. Mixing grades in bales, excessive moisture and moldy tobacco can lead to discounts or rejections, ultimately affecting profitability.

"In the long term, farmers are encouraged to invest in energy-efficient curing infrastructure, adopt precision farming techniques and implement improved agronomic practices.

"These measures can help reduce operating costs, enhance yield, and ensure better returns despite fluctuating prices.

Mr Masedza said the 2025 tobacco marketing season presented opportunities and challenges for Zimbabwe's tobacco farmers.

"While the anticipated increase in production is a testament to the sector's resilience and growth, the potential price pressures underscore the need for strategic planning and investment in quality improvement.

By adopting best practices and leveraging technological advancements, farmers can navigate the complexities of the global market and secure sustainable returns.

The Tobacco Industry and Marketing Board (TIMB) is already developing a new price matrix for contract tobacco sales to establish a more representative minimum price.

The new pricing system, expected to be implemented in the upcoming selling season beginning on April 5, will determine the following day's minimum price based on the average price of all tobacco sold -- both at auction and through contracts -- across all grades.

This will help insulate local farmers from potential subdued prices resulting from excess supply.

Tobacco is the country's largest single foreign currency earner after gold and is largely produced by small-scale farmers who were allocated farms under the country's land reform programme.

Read the original article on The Herald.