According to the "Herald" report, as Zimbabwe's tobacco export revenue increased by 30% in one year, tobacco farmers are demanding higher premium income.
According to the Zimbabwe National Bureau of Statistics (ZimStats), tobacco export revenue will increase from US$1 billion to US$1.3 billion from 2022 to 2023, and now tobacco farmers are demanding a share of the pie. It is reported that although income from crop exports has increased, farmers say that their share of the increased income is still small.
Mr George Seremwe, Chairman of the Zimbabwe Tobacco Growers Association (ZTGA), said: “The huge gap between the money in farmers’ pockets and the money exporters take home is an anomaly that needs to be addressed. This needs to be done by ensuring farmers have access to markets when their crops are taking ownership of the process to enhance farmers’ participation in the value chain.”
It is reported that Mr Seremwe said that a model needs to be established to reward farmers based on export earnings and pay premiums to farmers after the value addition process.
“We used to have the Reserve Bank of Zimbabwe’s (RBZ) Export Retention Scheme. This needs to be restored so that farmers can get more value from their crops.”
Victor Mariranyika, chairman of the Tobacco Farmers Union Trust (TFUT), agreed, saying tobacco prices need to be increased as farmers are not benefiting from the current model.
Mr. Mutasa Mutandwa, chairman of the Zimbabwe Progressive Tobacco Farmers Association (ZPTFA), agreed: “Growers are the weakest link in this matrix and need government protection.”
"Our crop sells at a high price in the international market because it is used as a blender, but farmers do not benefit. There is a need for massive investment in tobacco processing plants to increase exports of high-priced manufactured goods."
