TIMB introduces new pricing model to protect farmers

The Tobacco Industry and Marketing Board (TIMB) has introduced a new pricing model to protect tobacco growers and enhance price stability.

According to the Board, this model will result in reduced price fluctuations, increased and consistent earnings throughout the year.

It is believed that farmers will benefit from a more sustainable and profitable season.

TIMB adds that with this system in place, they are optimistic that prices will continue to rise in 2025, ensuring better returns for the hardworking tobacco growers.

The average tobacco price for 13 March 2025 was $3.51 and 14 March 2025 was $3.54.

Tobacco is one of the country’s major source of foreign currency.

By August last year, Zimbabwe had exported 180 298 957 kg of tobacco valued at US$963,3 million compared to 179 644 136 kg worth US$929,3 million during the same period last year as the country continues to increase international market share.

That season, farmers had produced 231 678 225 kg of tobacco worth US$793,6 million, below a target of 265 million kg, and this was attributed to El Nino-induced drought.

The previous season, Zimbabwe exported a record crop of worth US$1,2 billion, slightly short of its target of over US$1,6 billion.

It also produced a record crop of 297 million kg last year.

Statistics from TIMB show that the average export price this year stands at US$5,23/kg, an increase from US$4,99/kg during the same period last year.

The majority of Zimbabwe’s exported tobacco is shipped to countries in the Far East such as China and South Korea.

The recent half year trade statistics released by the Zimbabwe National Statistics Agency (ZIMSTAT) for 2024 reveal that Zimbabwe has exported tobacco products worth US$553,1 million, up from US$450,1 million in 2023.