Record-breaking tobacco industry shifts to value addition
Elita Chikwati
THE 2025 tobacco marketing season officially ended yesterday, with stakeholders now shifting their focus from merely producing the golden leaf to extracting value through local processing.
Contract sales will, however, continue.
The record-breaking season closed with farmers having collectively grossed $1,2 billion from 352,7 million kilogrammes of the crop, according to an update from the Tobacco Marketing Board.
The average price for the season was $3,32 per kilogramme, a slight decrease from the $3,43 per kg recorded in the previous season.
The highest price achieved at the auction floors was $4,99 per kg, while contract growers saw a top price of $6,30 per kg.
This season, the industry achieved record-breaking volumes, surpassing the country’s initial target of 300 million kg for the year 2025.
The country is now targeting 400 million kilogrammes by 2030. In the 2022/23 and 2023/24 seasons, volumes of 296 million and 231,8 million kilogrammes were achieved respectively.
Lands, Agriculture, Fisheries, Water and Rural Development Permanent Secretary Professor Obert Jiri commended farmers for a job well done in producing a good quality crop. He described the season as a major success for the agriculture industry.
“The 2025 marketing season has been a major success in the agriculture sector, surpassing the 300 million kg target. This achievement is largely attributed to the Tobacco Value Chain Transformation Plan.
“This success marks a significant milestone, and with continued improvements in financing, processing and contract systems, the sector is poised for even greater achievements. Now that we have improved on volumes, we target to increase local value addition and processing of the crop to improve earnings,” he said.
Professor Jiri said in terms of value addition, the country was currently at 10,15 percent, up from 8,8 percent in 2023.
“The Government and other players are working towards achieving 30 percent in local value addition in line with the National Development Strategy 1 (NDS1),” he said.
“It is also important to unlock sustainable financing that promotes local ownership of processing assets. We appreciate smallholder farmers who now contribute over 70 percent of production.”
The Government has proposed a $50 million fund to finance agriculture, particularly tobacco.
“The bulk of our tobacco (93 percent) is produced under contract farming and there have been concerns by some farmers over the system.
“Efforts are underway to fine-tune the system to ensure that both farmers and merchants derive value from the crop,” Prof Jiri said.
Zimbabwe is losing revenue by exporting semi-processed tobacco, hence the need to invest more in value addition and processing.
According to the Tobacco Industry and Marketing Board, there are nine factories with the capacity to produce 17 billion sticks of cigarettes annually, but production currently stands at
4 billion sticks.
Tobacco Farmers union Trust president, Mr Edward Dune, said the season ended on a high note, breaking the previous records in terms of production.
“A new record was set owing to a favourable season in terms of rainfall quantities and other related good agricultural practices.
“We have had minimum complaints related to delayed farmer payments as was the case in recent years, but the major challenge is that of skyrocketing input costs, contractual obligations and the 70/30 forex retention policy,” he said.
“Going forward, it is our prayer that the recently pronounced AFC buffer funds policy comes to fruition and rescues the industry through localisation of funding and beneficiation of value chains.”
Zimbabwe Tobacco Growers Association president, George Seremwe, said the season progressed well with few complaints from farmers.
“Things were a bit smooth with the volumes, quality and prices offered commensurate with each other. We want to see more inclusion of the farmer in the value chain,” he said.
Zimbabwe Farmers union economist, Dr Prince Kuipa, said local financing of tobacco could empower farmers and give them autonomy, weaning them from contract farming arrangements.
“It benefits the economy as money will circulate within the economy and reduce reliance on scarce foreign currency. Reducing the need for foreign exchange will stabilise the economy and cushion the sector from external economic shocks. Local financing can encourage investment in value addition, leading to the creation of employment and improved livelihoods for Zimbabweans,” he said.
Zimbabwe is the fifth largest tobacco producer globally, a position it has earned through the hard work of over 140 000 active farmers and the resilience of all value chain players.
Tobacco contributes over $1 billion annually to the economy, making it the flagship of the agriculture sector and a key driver of rural livelihoods.
The post Record-breaking tobacco industry shifts to value addition appeared first on herald.