The Sunday News
THE number of Chinese companies into tobacco contract farming in the country is set to go up following an increase in inquiries into the sector by business concerns from the Asian continent.
Contract farming in Zimbabwe’s tobacco sector has attracted many foreigners especially from China who enter into farming deals with local growers who cannot afford inputs and others costs.
Some of the top contractors include Chinese company, Tian Ze, Northern Tobacco, Zimbabwe Leaf Tobacco Company and the Zimbabwe Progressive Tobacco Farmers Union.
Agriculture, Mechanisation and Irrigation Development Deputy Minister responsible for cropping, Davis Marapira said more than 70 percent of tobacco grown in the country is through contract farming.
He said the Government was exploring ways of ensuring that the country benefits even more from the golden leaf through encouraging contract farming and advocating for the setting up of cigarette manufacturing plants.
“We have witnessed an increase in the number of tobacco contract farming to the extent that 70 percent of the growers are conducting their activities through this arrangement. There has largely been growing enthusiasm by Chinese companies,” Deputy Minister Marapira said.
Zimbabwe is the largest producer of tobacco leaf in Africa and the world’s fourth-largest producer of flue-cured tobacco, after China, Brazil and the United States of America.
Cde Marapira said although the country was realising meaningful export earnings from tobacco exports, it stood an opportunity to increase its revenue through value adding the product.
“It is estimated that about 500 000 million people in China are smokers hence as a country we stand to benefit immensely from this market especially if we add value to the product.
“Government is aware of the increased export earnings it stands to accrue and we are making efforts to ensure that investors set up cigarette manufacturing plants instead of us exporting semi-processed tobacco,” Deputy Minister Marapira said.
Since cigarette production in Zimbabwe is on a small scale, the major activities in the tobacco industry are growing, curing and subsequent handling and distribution of tobacco leaf. The country does not have a large tobacco manufacturing industry and produces only enough cigarettes to supply domestic demand and provide a relatively small volume for export. Therefore 98 percent of all tobacco production is exported.
The crop normally accounts for more than 50 percent of agricultural exports, 30 percent of total exports and nearly 10 percent of GDP.
Tobacco Industry and Marketing Board regional co-ordinator Mr Lovemore Chikweya said the increase in tobacco contract farming was a welcome development in light of the financial constraints being faced by most growers in the country.
“Contract farming is of paramount importance especially with the economic situation we are faced with. This arrangement will help farmers without enough financial resources and it will come handy in ensuring a ready market for the produce,” Mr Chikweya said.
Asked on the importance of adding value to the tobacco produced in the country, Mr Chikweya said such a move would ensure growth of the country’s economy while it would enable farmers to be part and parcel of such manufacturing plants thus ensuring improved production.
