Zimbabwe’s 2025 tobacco marketing season opens

On March 5, 2025, the annual tobacco sales and marketing season officially began at the Tobacco Sales Floor in Willowvale, Harare. The ceremony featured the auction of the first bale, which fetched USD 4.65 for lemon leaf tobacco, continuing the time-honored tradition presided over by the guest of honour, Hon. Dr. Anxious Jongwe Masuka, Minister of Lands, Agriculture, Fisheries, Water and Rural Development.

The opening ceremony was led by Pat Devenish, Chairman of the Tobacco Industry and Marketing Board (TIMB), accompanied by Permanent Secretary Prof. Obert Jiri and Deputy Minister Hon. Vangelis Peter Haritatos. The event also welcomed international dignitaries, including Phil Daka, Board Chairman of the Tobacco Board of Zambia, and Robert Mwale, Executive Director of the Tobacco Board of Zambia, highlighting the regional significance of Zimbabwe's tobacco industry.

For the 2025 season, TIMB has licensed two auction floors: Tobacco Sales Floor (TSF) and Premier Tobacco Auction Floor (PTAF), along with 43 contractors and 32 Class 'A' buyers. To enhance accessibility for farmers, the Board has approved decentralised contract sales at 56 selling points across seven centres throughout the country.

New biometric system

A major announcement during the ceremony was the introduction of a biometric grower management system designed to address longstanding challenges within Zimbabwe's tobacco sector. This solution will implement biometric data capture, linking each farmer's unique grower number to their fingerprints, GPS coordinates of their household and farm, and demographic data. The system aims to protect farmers, curb side marketing, and eliminate fraudulent activities while restoring transparency and efficiency to the industry.

Payment structure

The Reserve Bank of Zimbabwe (RBZ) has set the foreign currency retention for tobacco at 70%, aligned with the retention level for other market players, with the remaining 30% to be paid in local currency. Chairman Devenish assured attendees that the Board would continue lobbying for the RBZ to address growers' concerns regarding payment modalities.

Progress on the Tobacco Value Chain Transformation Plan

In his address, Minister Masuka provided a candid assessment of the Tobacco Value Chain Transformation Plan (TVCTP), which spans from 2021 to 2025. The plan's four primary objectives include:

1. Accelerating localisation of tobacco funding to 70% of production costs
2. Increasing tobacco production from 262 to 300 million kg
3. Boosting alternative crop income to 25% of farmers' earnings
4. Elevating tobacco benefaction from 2% to 30%

While the sector achieved a record 297 million kg production in the 2022/2023 season, drought subsequently reduced output to 232 million kg in 2023/2024. The current season anticipates approximately 280 million kg.

Minister Masuka acknowledged that several key targets remain unmet, including the unrealised seed financing of USD 60 million, though he noted that some financial institutions are beginning to actively fund the industry. Alternative crop income remains at 15.03%, below the targeted 25%, and value addition has only increased from 2% to 7%.

Sustainability and future outlook

Sustainability remains a central pillar of TIMB's operations, with Devenish emphasising their commitment to supporting environmentally responsible practices throughout the value chain. Despite ongoing challenges, Zimbabwe continues to be a premier source of premium tobacco, with international markets highly valuing its unique flavour profiles.

The Deputy Minister, Hon. Haritatos, highlighted that the tobacco sector continues to be a leading contributor to Zimbabwe's agricultural economy and a crucial export commodity and foreign currency earner. He noted that the TIMB, in collaboration with the Ministry, has implemented several innovative initiatives including biometric systems to minimise side-marketing and measures promoting responsible, transparent, and sustainable tobacco production.

A comprehensive review and potential re-strategisation of the TVCTP is expected later this year, aligning with the broader Agriculture Food Systems and Rural Transformation Strategy, as Zimbabwe continues its journey toward becoming an Upper Middle Income society by 2030.

OPINION

Zimbabwe 2025 tobacco selling season navigates challenges, chases records

As Zimbabwe's 2024/25 tobacco marketing season launches, does the nation find itself at a critical crossroads? The first bale sold at USD 4.65/kg was a modest dip from last year's USD 4.92/kg price tag. Does this signal the complex landscape farmers and traders are navigating this season?

 The country's ambitious goal of 300 million kg represents more than just a potential record; it's a high-stakes economic gamble. This national target (revised by TIMB to 280 million kg for this season) comes amid a global tobacco market characterised by uncertainty, oversupply, and cautious international buyers.

 Zimbabwe isn't operating in isolation. According to industry insiders, major tobacco-producing nations like Brazil, India, and Tanzania are also projecting increased harvests, creating a perfect storm of potential oversupply. Will this global backdrop cast long shadows over pricing and market dynamics?

 Achieving the 300 million kilogram target hinges on a delicate balance of several interconnected variables:

Meteorological mood swings: Rainfall patterns have been anything but predictable. While some regions received adequate precipitation, others experienced dry spells and excessive rainfall, both of which can dramatically impact crop yield and quality.

Infrastructure and logistical labyrinth: With post-harvest losses estimated around 30%, Zimbabwe's agricultural infrastructure is being put to a rigorous test. Barn capacities, curing efficiencies, and storage capabilities will play pivotal roles in determining the final marketable volume.

Economic resilience of farmers: The current economic (for this, read high costs of production and reduced forex retention rates) environment poses a significant challenge. Farmers must decide whether to sell at current market prices or hold onto their crops, hoping for a market correction. This economic calculus could substantially influence total tobacco deliveries.

 The next few weeks are more than just a selling season. They are a critical economic chapter for Zimbabwe. Each bale that reaches the auction floors tells a story of resilience, adaptation, and hope.

Whether Zimbabwe will break its production records or fall short remains an open question. What's certain is the unwavering spirit of its agricultural sector, continually pushing boundaries despite challenging global markets.

The 300 million kilogram target isn't just a number. It is a testament to Zimbabwe's agricultural ambition.