Tobacco farmers have demanded that the reafforestation programme should be expedited amid indications that only 4 500 hectares of gum trees have been planted since collection of the levy started in 2015.
The current sluggish reforestation efforts may make Zimbabwe’s tobacco less appealing on global markets that now favour products produced using sustainable methods.
As reported by <a href="https://www.herald.co.zw/tobacco-farmers-demand-answers-on-us46m-afforestation-levy/">The Herald</a>, Zimbabwe Tobacco Association (ZTA) chief executive officer Rodney Ambrose said currently, 70 per cent of the tobacco produced in the country is cured using wood. He said:
<blockquote>
It’s now almost 10 years since TIMB started collecting an afforestation tax of 0.75 per cent from growers with over US$40 million collected and very few afforestation programmes taking place.
Afforestation programmes are critical to the sustainability of Zimbabwe’s tobacco production and markets, as close to 70 per cent of the crop is cured using wood.
</blockquote>
In the 2015 national budget, the Government re-introduced the tobacco levy on tobacco growers at a rate of US$0.015 per dollar of the selling price.
The funds generated from the levy are meant for financing re-forestation activities.
In the 2016 national budget, the tobacco levy was slashed by half to 0.75 per cent due to El Nino and has remained on that level until now.
Calculation of statistics from TIMB shows that over US$46 million has been collected since 2015.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Tobacco Farmers Want Afforestation Programme To Be Expedited

The rising cost of fuel and fertiliser could negatively impact tobacco production next season which may result in reduced yields.
Supply chain disruptions caused by the Russia-Ukraine war are expected to push up the cost of tobacco production as the prices of inputs soar, farmers have warned.
Speaking in an interview with Business Times, the Zimbabwe Tobacco Association (ZTA) CEO Rodney Ambrose said:
<blockquote>
With the Russia – Ukraine war, costs are estimated to increase even further and prices paid for tobacco this season has to also take this into account.
</blockquote>
Ambrose noted that the recent increase in the price of fuel has resulted in the local cost of flue-cured tobacco production rising by 8.3%.
He warned that the increase in tobacco production costs may see growers turning to food and export crops.
Tobacco is Zimbabwe’s fourth-largest foreign currency earner.
The war in Eastern Europe may also result in countries dependent on food crops imports, offering higher incentives and prices on food crops. Said, Ambrose:
<blockquote>
This may see a further drop in flue-cured production in 2023 as ably resourced growers consider reducing their tobacco hectarage in favour of the attractive food crops.
This could be an option for growers in Zimbabwe, Brazil, USA and Zambia.
</blockquote>
Tobacco Industry and Marketing Board (TIMB) CEO Meanwell Gudu concurred that the Russia-Ukraine conflict will adversely affect tobacco production. He said:
<blockquote>
Prices for inputs have definitely increased and this is affecting the viability of tobacco production.
The two warring countries are traditionally big suppliers of raw materials for fertilisers.
</blockquote>
Ambrose forecasted the average prices to be closer to US$3/kg up from US$2.70/kg in 2021.
The 2022 tobacco marketing season starts on 30 March.
<h4>More: <a href="https://businesstimes.co.zw/tobacco-production-under-threat/">Business Times</a></h4>

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