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Home » Tobacco farmers reap savings from coal facility

Tobacco farmers reap savings from coal facility

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TOBACCO farmers are currently saving at least US$20 per tonne in production costs, thanks to a coal facility jointly developed by the Tobacco Industry & Marketing Board (TIMB) and Hwange Colliery.
TIMB’s head of business development, Tapiwa Chimedza, revealed at a media interface that the partnership with Hwange Colliery has resulted in a 25 percent discount on coal, with over 6 000 tonnes moved so far.
“Farmers previously sourced coal from contractors without transparency on the original purchase price. With this facility, farmers apply for coal directly, and TIMB facilitates the application with Hwange Colliery, which then invoices the farmer,” Chimedza explained.
This process not only enhances transparency but also results in significant savings for farmers, with production costs reduced by US$15 to US$20 per tonne.
The partnership, established in October last year, benefits TIMB-registered growers with active grower numbers. To ensure efficient coal transportation, TIMB has engaged the National Railways of Zimbabwe (NRZ) and other transporters.
However, in light of the coal ban, TIMB is actively researching cleaner alternative curing methods.
“We are exploring gas curing, given Zimbabwe’s vast gas deposits, and solar has also been under consideration. Affordability and access are key considerations in our search for alternative curing sources,” Chimedza added.
The 2024 tobacco marketing season in Zimbabwe is set to commence on March 13 with auction sales, followed by contract sales the next day.
This comes amid a 4 percent decline in the planted area compared to last year, raising potential concerns for the industry’s future.
Agriculture minister Anxious Masuka recently disclosed that this year’s tobacco crop size is expected to yield significantly less due to the El Nino-induced drought.
Compared to last year’s record haul of 296 million kilogrammes (kgs), preliminary assessments indicate a crop north of 260 million kg, from about 120,000 hectares.
However, assessments are still being carried out.
newsdesk@fingaz.co.zw

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