By Almot Maqolo.
HARARE – Zimbabwe’s tobacco volumes are projected to range between 10% and 20% below prior year due to harsh weather conditions.
Indications are that the tobacco marketing season will start between three to six weeks later this year.
“The country largely experienced a very dry start to the summer season. Initial forecasts of a severe drought were subsequently averted as rains were received midway through January 2020,” TSL stated in its quarterly report.
According to RBZ and TIMB tobacco farmers will get 50% of their proceeds in foreign currency. The money would be paid into foreign currency accounts (FCAs) and advised the farmers to open accounts.
“Payment modalities to tobacco farmers, which have recently been announced by the regulatory authorities, as in previous years, will play a significant role in the outturn of the tobacco marketing season.”
In the outlook, the firm said the operating environment is expected to remain challenging for the remainder of the year.
“With the anticipated late start of the tobacco marketing season, volumes in the second quarter in all tobacco-related businesses, are expected to be below prior year. This is, however, a temporary shift that is expected to correct in the third quarter of the year,” it said.
However, the group will continue to implement its “moving agriculture” strategy while foreign currency generation and value preservation remain key priorities.
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