MARTIN MAWAYA
HAARE-Zimbabwe’s tobacco growers are increasingly trapped in a marketing system critics say favours merchants and contractors at their expense, with thousands forced to sell the golden leaf at prices far below production costs despite a sharp increase in output.
The crisis has exposed structural weaknesses in the country’s multi-billion-dollar tobacco sector, where farmers carry production risks while buyers largely control pricing.
This year’s tobacco marketing season opened on a promising note after the first bale fetched US$4,60 per kilogramme, only for prices to plunge within days, with some growers reportedly receiving as little as US$0,35/kg.
The average tobacco price has since fallen to about US$2,62/kg from US$3,42 recorded during the same period last year, triggering outrage among growers and prompting government intervention over suspected market manipulation.
Agriculture minister Dr Anxious Masuka said government was deeply concerned by the price decline, arguing that increased production volumes should not be used to justify underpaying farmers.
“A 49% increase in volumes cannot translate to the kind of depressed prices we are witnessing on the market,” Masuka said, adding that the government has since instituted investigations into possible collusion and unfair pricing practices.
Masuka said government had already suspended one tobacco buyer over alleged irregularities while investigations into contractor operations and marketing systems continued.
“We are reviewing relationships between contractors and growers to ensure there is no manipulation of prices or exploitation of farmers,” he said.
Zimbabwe’s tobacco industry remains one of the country’s biggest foreign currency earners, supporting more than 115 000 growers and generating hundreds of millions of United States dollars annually.
However, many farmers say they are trapped in exploitative contract farming arrangements that leave them heavily indebted and powerless during sales.
Under the contract system, merchants provide inputs such as seed, fertiliser and chemicals, with farmers required to sell the crop back to the contractor after harvest.
While the model has boosted production over the years, growers argue it has also handed excessive control to contractors who dominate financing, grading and buying processes.
Agricultural analysts say the imbalance has weakened farmers’ bargaining power as buyers control funding, grading and the market floors, creating conditions that allow possible price suppression.
Farmers told The Midweek Watch that returns are no longer matching rising production costs, particularly for coal, labour, transport and curing.
“You spend months in the fields and borrow money for inputs, but when you get to the auction floor the prices are disappointing,” said a farmer from Mvurwi, one of the country’s major tobacco-producing areas.
“Many farmers are now struggling to break even.”
Growers have also long complained about multiple deductions and levies which they say further erode earnings.
Among the major concerns has been the afforestation levy and the 2% coal levy imposed under corporate social responsibility initiatives.
However, Masuka said government would remove the 2% coal levy and restrict the afforestation levy to farmers using firewood for curing tobacco.
“We cannot continue burdening farmers with costs that reduce their viability,” Masuka said.
“The intention is to lower production expenses while encouraging efficient and sustainable curing systems.”
Government is also establishing a tobacco stabilisation fund aimed at supporting irrigation development and modern curing technologies.
“A stabilisation fund will help us cushion growers and improve production efficiency through better irrigation and curing infrastructure,” Masuka added.
Experts say while the measures may offer immediate relief, broader reforms are needed to protect growers from unfair pricing practices.
Globally, major tobacco-producing countries have strengthened farmer protection systems through transparent marketing structures and stronger regulation of contractors.
In Brazil, farmer associations play a key role in negotiations with merchants, while India uses electronic auction systems supervised by the Tobacco Board to improve transparency and limit manipulation.
Analysts say Zimbabwe could benefit from adopting similar reforms.
Critics also argue that Zimbabwe’s heavy reliance on exporting raw tobacco leaves farmers exposed to global price shocks and weakening international demand.
They say long-term sustainability will depend on increased value addition, local cigarette manufacturing and diversification within the tobacco value chain.
Many growers fear that unless pricing reforms are urgently implemented, confidence in tobacco farming could continue to decline despite rising production volumes.
