Vol.21 No.135

Thursday 2 September 2004    

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Business Week
Zimbabwe tobacco crop falls again


9/2/2004 12:31:10 AM (GMT +2)

ZIMBABWE’S tobacco crop, one of its main sources of hard currency, has fallen for the fourth year in a row. Official figures show Zimbabwe had sold just over 64 million kilograms of the plant by Monday, the penultimate day of the 2004 tobacco selling season.


The crop, down sharply from 80 million kgs last year, generated revenues of about $130m (about P624m)

The latest tobacco harvest continues a pattern of steady decline that began four years ago.

The slump partly reflects disruptions caused by the government’s policy of redistributing white-owned land.

The latest tobacco crop compares with a harvest of 237 million kgs in 2000, the year land redistribution began.

New black farmers are reported to have had difficulties raising money to invest in machinery and agricultural inputs such as fertiliser.

The agriculture industry has also suffered from rampant inflation and high borrowing costs.

Zimbabwe’s dwindling tobacco crop leaves the country with less hard currency to buy vital imported commodities such as fuel and medicine.

The final tally of the 2004 tobacco crop could be slightly higher once ‘mop-up’ sales, due to take place in September, are taken into account.

The bulk of Zimbabwe’s tobacco is exported to Asia and the European Union. (BBC)

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