cheveron-tobacco-leaf-zimbabwe-logo

+263 867 719 7632

Whatsapp +263 773 272 522

Muchibwa House

18158 Belvedere Road, Kwangwa Suite, Harare, Zimbabwe

+263 867 719 7632 | [email protected]

Muchibwa House, 18158 Belvedere Road, Harare, Zimbabwe

cheveron-tobacco-leaf-zimbabwe-logo

Tobacco contract farming in Zimbabwe

Home 9 Tobacco Farming Tips 9 Tobacco contract farming in Zimbabwe

Tobacco Products

Our portfolio of offerings in tobacco includes flue cured virginia strips or lamina, cut rag, raw stems and expanded stems, and fines.

Leave A Message

8 + 11 =

Tobacco contract farming in Zimbabwe

Dec 18, 2022 | Tobacco Farming Tips, Updates

Types of tobacco contract farming in Zimbabwe

Tobacco is grown under two systems in Zimbabwe which are; tobacco contract farming and free-financed crop. Currently 95% of the national crop is being financed by tobacco merchants under contract farming system and only 5% is self-financed by farmers.

How tobacco contract farming works

Contracted crop is purchased through contract buying system which is administered by TIMB through regulation and more important the booking system which only allows contracted grower to sale his crop at contract floor where he was contracted thus helping in reducing the side marketing activity.

Growth of contract farming in Zimbabwe

The growth of contract farming system has been pushed by farmers failing to access funding from banks due to lack of collateral hence now leveraging on tobacco merchants for funding.

Also, the demand that continued growth has created a run for merchants to sure the crop through contract farming as volumes from self-financed farmers has been declining every year.

Tobacco price matrix

Price matrix which the regulatory board uses to enforce is generated from auction system where a competitive bidding system helps to have an efficient price discovery method. The contract buying system will then purchase tobacco equal to or more than the previous price from the previous day.

0 Comments

Recent Posts

Tobacco Products

Our portfolio of offerings in tobacco includes flue cured virginia strips or lamina, cut rag, raw stems and expanded stems, and fines.

Leave A Message

8 + 7 =

Recent Posts