The Tobacco Industry and Marketing Board (TIMB) in Zimbabwe has initiated a comprehensive transporters framework aimed at safeguarding tobacco growers from exploitation by unscrupulous transport operators during the upcoming marketing season. As the 2024 auction tobacco marketing season is poised to commence on March 13, with contract tobacco sales following on March 14, TIMB’s strategic measures underscore a commitment to ensuring fairness and transparency throughout the pivotal period.
Chelesani Tsarwe, the public affairs officer for TIMB, in a conversation with NewsDay Farming, outlined the organization’s multifaceted approach to protect both growers and contractors from predatory practices. The establishment of a transporters framework marks a significant step towards regulating transportation services within the industry, ensuring that all transporters adhere to standards that safeguard growers’ interests during the critical marketing season.
Preparatory efforts for the 2023–24 marketing season are in full swing, with TIMB conducting physical inspections of all auction floors to verify compliance with operational standards. Moreover, the board is engaged in the third round of a national tobacco forecasting exercise, aimed at assessing crop conditions to accurately estimate national yield and production levels. This rigorous assessment underscores TIMB’s dedication to maintaining a pulse on the industry’s health and preparing for a successful marketing season.
In a proactive stance against side marketing—the practice of selling tobacco outside of designated channels — TIMB has fortified its inspectorate department. With the department’s decentralization across all regions, inspectors are strategically positioned to enforce regulations, ensuring orderly conduct throughout the marketing season. These measures are part of TIMB’s broader strategy to instill discipline within the market, thereby fostering an environment of fairness and transparency.
Technological advancements have revolutionized various facets of the tobacco industry, particularly in operational efficiencies such as bale booking, floor capturing, and stop order computations. Tsarwe highlighted how technology facilitates the seamless integration of grower information, ticket scanning, and mass capturing through automated scales. Additionally, the implementation of stop order computations centralizes the management of deductions, including levies and legacy debts, enhancing debt recovery efficiency.
The digital transformation extends to the use of web services for booking and stop order computations, alongside handheld terminals for scanning and capturing, streamlining processes and improving accuracy. This digital infrastructure plays a crucial role in maintaining the integrity of transactions and ensuring that growers receive fair compensation for their produce.
Pricing dynamics on auction floors are determined through a bidding process, with the highest bid setting the price for each tobacco bale. A grade-price matrix, informed by average grade prices from the previous day’s auction sales, establishes the floor price for each grade during contract sales. This pricing mechanism ensures that market forces dictate tobacco prices, reflecting the quality and demand for the product.
Registration figures for the upcoming season indicate a slight decrease in grower participation, with 129,336 growers registered as of February 23, compared to 148,527 in the previous year. Notably, contract farmers constitute 92% of the registered growers, highlighting the predominant role of contract farming amidst economic challenges and currency instability.
Zimbabwe’s tobacco industry has witnessed significant financial returns, with exports worth US$358 million in the reviewed period, marking a substantial increase from US$112.8 million in 2023. The shift towards contract farming has emerged as a dominant model due to economic adversities, enabling farmers to sustain their operations through external support. This model, while providing necessary resources, also introduces complexities that necessitate regulatory oversight and support from institutions like TIMB.
The TIMB’s proactive measures and technological integration underscore a comprehensive strategy to support Zimbabwe’s tobacco growers and contractors. By addressing transportation challenges, combating side marketing, and leveraging technology, TIMB aims to foster a conducive environment for the tobacco industry’s growth. These efforts, coupled with strategic pricing mechanisms and the predominant role of contract farming, reflect the dynamic nature of Zimbabwe’s tobacco sector and its critical contribution to the national economy. As the 2024 marketing season approaches, TIMB’s initiatives are poised to enhance the industry’s sustainability and profitability, ensuring that Zimbabwe remains a pivotal player in the global tobacco market.
Source: Newsday
