Farai Mabeza, Senior Staff Writer 
THE tobacco selling season is set to offer foreign currency relief to the government, amid record production by small-scale farmers, who contributed 63 percent of the total produce last year.
Despite facing challenges with sustainable financing models and energy provision, the small-scale farmers have helped tobacco farming to return to pre-land reform production levels, making the sector one of the country’s major foreign currency earners, after contributing US$782 million through exports in 2020.
Agriculture minister Anxious Masuka told The Financial Gazette that the government was pinning its hopes on the tobacco crop to boost the country’s economic prospects following the opening of the marketing season.
Agriculture minister Anxious Masuka
“The government has its eyes on the role of tobacco in uplifting livelihoods in line with Vision 2030, and of course, for the much-needed foreign currency that this crop brings to our country. As the minister responsible for this subsector, my gaze, and mind, are fixed on the entire value chain — on fairness, on ethics and probity, on transparency, on accountability, on discipline, on equity and on sustainability. The viability of the farmer is at the epicentre of the future of the industry,” Masuka said.
Zimbabwe is in dire need of foreign currency as it imports most of its products, requiring at least US$500 million every month.
Small-scale farmers anchor tobacco production, contributing 133 million kilogrammes of the 211 million kilogrammes sold in the 2021 marketing season, according to the Tobacco Industry Marketing Board (TIMB).
While the tobacco selling season is set to ease the country’s foreign currency pressures, Masuka said there was need to alleviate challenges in the sector, urging TIMB to find long-lasting solutions to the problems.
“TIMB should aspire to achieve better livelihoods for farmers and sustainability for the tobacco industry, and we all need to rally behind and support these great endeavours. Farmers look forward to getting a decent return for their effort. Contractors look forward to recovering their loan in full, and making a decent profit. Banks, too, are holding their breath, looking forward to the full repayment of loans advanced in good faith to many value chain financiers. Our merchants, local and abroad, wait to see the quality of the crop and to consummate deals to ensure that the entire run of the crop has a market,” he said.
TIMB deputy chairperson Nomusa Dube told The Financial Gazette on the sidelines of the official opening of the 2022 marketing season that small-scale farmers were the major contributors of volume and quality tobacco in Zimbabwe.
“They (small-scale farmers) are our economic heroes and we applaud their dedication. Some of us take it for granted, but farming is a business. It is a means to an end. If contractors adopt a perpetual culture of early distribution of farming inputs and we receive good rains, we should be able to develop proper business models for our tobacco farming.
“Concerns have been raised with regards to growers facing viability challenges because of increased cost of production. Prices of inputs have really gone up,” Dube said. This comes as authorities say they are working on better alternative sources of funding for the farmers to alleviate some of these challenges and improve the viability of tobacco growers.
“The industry, together with the Reserve Bank of Zimbabwe, have jointly put in place improved payment measures to ensure that tobacco growers get full value for their crop and are simultaneously paid within the shortest possible time.
“Through the Tobacco Value Chain Transformation Plan, spearheaded by our parent ministry and approved by Cabinet, we are focusing on addressing issues of local funding, sustainable tobacco production, the regulatory framework as well as value addition and beneficiation.
“This new tobacco strategy aims to transform the tobacco value chain to a US$5 billion industry by December 2025,” Dube added.
Commercial Farmers Union chief economist Antonette Chingwe also said small-scale farmers still need to be assisted to fully commercialise operations so they get more returns from their enterprises.
“Tobacco is a commercial crop. However, the returns are still low for small-scale farmers in comparison with commercial producers. It’s a high maintenance crop which makes costs of production much higher. Business management skills are still lacking for most small-scale growers, not much is done in terms of record keeping to account for real costs incurred.
“For instance, usually the family provides labour and this is not accounted for. The processing of tobacco is highly mechanised. Most farmers lack the proper structures and equipment required for tobacco processing, which compromises quality. Farmers need to be educated on farm business management and good agro-management skills,” Chingwe said.
Meanwhile, TIMB has embarked on a rebranding drive meant to boost the sector through a new strategic focus to stakeholders following the adoption of a new vision, mission statement, and values.
“… we are morphing into an organisation that plays a significant role in sustainable land utilisation, research and in the empowerment of growers through innovation and exploration of new markets. We will continue to serve tobacco growers, merchants, financiers and processors while looking into other areas of expansion and positive influence. In short, TIMB is broadening its horizons,” Dube said.
Zimbabwe is one of the largest producers of the golden leaf in Africa, and the world’s fourth largest producer after China, Brazil and the United States of America, thanks to contract farming, which has been instrumental in sustaining production levels as farmers grapple with high production costs.
This year’s crop is expected to be of generally fair to good quality though it was grown in a late season, with very wet weather conditions, which resulted in nutrient leaching and incidences of some bacterial diseases, particularly angular leaf spot.
The country had 110 155 hectares of tobacco planted by 122 841 growers, with around 600 growers registered for the first time, a huge increase from just over 7 000 growers registered in 1999.
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