Harare (New Ziana) – Tobacco processing capacity is expected to be ramped up by 50 percent with the construction of a new cigarette manufacturing plant and cut rag factories, a Cabinet Minister has said.
Giving a post cabinet briefing on Tuesday, Information, Publicity and Broadcasting Services Minister, Jenfan Muswere said Cabinet had been briefed that the increase would become evident during the first half of next year.
Muswere said Lands, Agriculture, Fisheries, Water and Rural Development, Minister, Dr Anxious Masuka gave the update as he briefed Cabinet on the Tobacco Transformation Plan.
The plan seeks to increase tobacco production to 300 million kg by 2025 and transform the sector into a US$5 billion industry through exports of tobacco value-added products as tobacco volumes have seen a boost through post-harvest loss reduction and yield increase.
During the 2022/23 season a record 296.1 million kg of tobacco, worth US$896 million was produced with A1 and A2 farmers contributing 153 320 472 kg and US$480 548 375 of total production.
Meanwhile the Tobacco Industry Marketing Board (TIMB) introduced the compliance Administration Framework in 2022 to ensure that farmers received a minimum input package from contractors. Additionally, Statutory Instrument 77 of 2022 was introduced in 2022 to criminalise side-marketing of crops.
“There is a one percent increase in the tobacco seed sold this season and a three percent increase in area planted to irrigated tobacco compared to the previous year,” Muswere said.
“The nation is informed that to accelerate localization of tobacco funding to 70 percent of the cost of production by 2025, the Reserve Bank of Zimbabwe recently removed the requirement compelling tobacco merchants to source offshore financing to fund production and for buying green leaf from farmers.”
He said TIMB was offering GLOBAL GAP Consultancy services to enable tobacco farmers to access global exports markets for horticultural crops and help them increase production of alternative crops and their contribution to their incomes by 25 percent by 2025.
Additionally, agronomic evaluation of imported industrial hemp varieties by the TRB has now been advanced to multi-location trials.
With the country having exported 145 million kg at an average price of US$4.97 per kg this year, compared to 122 million kg at US$4.54 per kg the previous year, Muswere said Cabinet noted that there are opportunities to increase the level of value addition and beneficiation of tobacco into cut rag and cigarette production from two percent of tobacco produced to 30 percent.
The government has set the marketing price of US$520 per ton.
New Ziana
