On March 22, according to a report in The Pioneer, statistics from the Tobacco Industry and Marketing Board (TIMB) in Zimbabwe show that the rejection rate for tobacco auctions in the country is 60.78% higher than the same period last year.
Edward Dune, Vice Chairman of the Tobacco Farmers Trust, stated that "typically, this season is very difficult to air dry high-quality tobacco leaves, so a small portion of farmers will mix different grades of tobacco leaves, sometimes including moldy leaves. This accounts for approximately 97% of the rejected tobacco.
The remainder consists of a small percentage due to price concerns, but even tobacco packs with defects are accepted at the contracted tobacco auction.
The high rejection rate has raised concerns for George Seremwe, the chairman of the Zimbabwe Tobacco Association. Seremwe suggests that middlemen may be colluding to reject certain tobacco batches in order to reap the benefits of reprocessing. He calls for a thorough investigation into the matter.
According to a research report by the Chinese Ministry of Commerce, Zimbabwe is the largest tobacco exporting country in Africa and the second largest in the world after Brazil. 99% of their annual production is exported, with the tobacco industry being a major source of foreign exchange for Zimbabwe, generating an average of $400-600 million in exports per year. China National Tobacco Corporation has established Tianze Tobacco Limited with an investment of $5 million for contract farming in Zimbabwe. According to the Zimbabwe Tobacco Industry Marketing Board's latest data, tobacco is exported to 34 countries, with China being the top consumer of tobacco from Zimbabwe.
Further reading:
Zimbabwe: Tobacco prices rise as auctions begin.
Reference/Sources:
Farmers are expressing their dissatisfaction with the high rejection rate of tobacco auctions.
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