The Tobacco Industry and Marketing Board (TIMB) has announced that all tobacco grown without contract funding must be sold exclusively through the auction system in the upcoming season.
In Zimbabwe, tobacco farming operates under two main models: contract farming and self-financing.
The latest directive from TIMB, issued ahead of the 2024/25 marketing season, aims to ensure fair pricing for farmers and prevent exploitative practices.
This move follows the continued strong performance of the tobacco sector, which has seen record production levels, increasing export revenues, and sustainability initiatives gaining traction.
TIMB CEO Emmanuel Matsvaire emphasised that the directive is intended to uphold transparency in pricing and eliminate side-marketing.
“We are challenging all 55 licensed merchants this season; there will be no room to purchase free-funded tobacco outside the auction system,” he stated.
As the industry regulator, TIMB has reinforced its zero-tolerance stance on violations.
Previously, self-financing farmers could sell their produce directly to merchants outside the auction process under prearranged agreements. However, TIMB now considers such practices as contributing to unfair pricing mechanisms.
Tobacco sales conducted outside the auction system can distort market values, as the minimum price set at auction serves as a benchmark for contract sales.
To strengthen oversight, TIMB has introduced biometric registration, signalling its commitment to preventing illicit activities, including side marketing.
The regulatory adjustments are expected to maintain the integrity of auction pricing and promote fair competition within the sector.
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Matsvaire also reaffirmed TIMB’s dedication to sustainable farming by introducing initiatives such as the Agricultural Labour Practices Code and the Contractors Compliance Administrative Framework.
These regulations require registered contractors to meet stringent environmental standards and contribute to social and economic development in tobacco-growing communities.
The sector has witnessed a notable rise in registered growers, with over 107,000 households enrolled for the 2024/25 season, a 16% increase from the previous year.
Communal farmers represent the largest portion of this group, accounting for more than 59,656 registrations, followed by A1 and small-scale farmers.
Tobacco remains a cornerstone of Zimbabwe’s economy, ranking among the country’s top exports alongside gold and platinum.
By December 2024, Zimbabwe’s tobacco export earnings had surged to US$1.3 billion, up from US$1.23 billion the previous year.
This marks the second consecutive year in which export revenue has surpassed the US$1 billion threshold, driven by strong global demand and competitive pricing.
TIMB Public Affairs Officer Chelesani Tsarwe attributed this growth to the global demand for Zimbabwe’s flue-cured tobacco, which is prized for its distinct flavour profile.
“As of December, Zimbabwe had exported 243.4 million kilograms of tobacco, generating US$1.31 billion in revenue,” Tsarwe noted, highlighting the industry’s resilience amid fluctuations in international markets.
The majority of Zimbabwe’s tobacco exports were shipped to Far Eastern markets, primarily China and South Korea, with additional volumes reaching Middle Eastern countries such as Iran.
With these regulatory changes in place, TIMB aims to reinforce fair trade practices, protect self-financed farmers, and sustain the upward trajectory of Zimbabwe’s tobacco industry.
