Jozef Clifford Behr : Zimbabwean Farmer Need better deal at Tobacco Export Market

A Zimbabwean Farmer Need better deal at Tobacco Export Market “Farmers were made to wait for nearly a month in some cases for payments after delivering their tobacco to the export market, and in that time, much of their earnings would drop in value” Jozef Behr says.

Jozef Behr is a Zimbabwean farmer who cultivate Tobacco in his field. He takes care of the crops, gives his sweat and blood to the farm and in return he just wishes for a reasonable return like the other tobacco farmers in Zimbabwe.

Last year, Zimbabwe had one of its most prolific tobacco seasons on record, but weak payment models for farmers as a result of currency instability put many farmers at the mercy of contract purchasers.

The COVID-19 period was very tough for the farmers as they did not get the chance to harvest the crops or earn any money. They spend their whole pandemic period in distress.

The people in Zimbabwe are still not much aware about the Covid vaccine, as per the Jozef Clifford Behr, Zimbabwe see the low Covid vaccine uptake.

The selling season began on April 7, 2021, and ended a few days later, but the uncertainty about payments has become a characteristic of Zimbabwe's most important agricultural export.

Talking about the market rate of Tobacco for framers is 60% of their tobacco payments in US dollars, which they are paid in cash at the auction floor or by contractors, under the central bank's system, while the remaining 40% is paid out in local currency at the official exchange rate, which was 60% lower than the black-market rate for much of the selling period. The auction rate on the parallel market exchange has nearly doubled.

Many people are concerned about the agricultural venture's viability since that share may lose 20% of its value by the time it reaches their accounts. Tobacco Sales Floor, Boka Sales Floor, and Premier Sales Floor are the three auction floors registered by the Tobacco Industry and Marketing Board (TIMB) this season.

The exploitation of farmer’s hardship at export by providing them less amount in return what they deserve, will disappoint each and every farmer like Jozef Behr. “I am not here to beg you for your money, it’s my money and I deserve it but all the farmers are bound to accept the money they offer because we are not even allowed to enter the export market. All the deals and transactions are confirmed between the brokers and the buyers.”

According to the economist Victor Bhoroma, “The downside however, is that contract floors now control 94% of the marketed crop at fixed prices which may be lower than auction prices hence farmers end up getting less for their delivered crop. Similarly, the dominance of the Contractors piles huge short-term debts on tobacco farmers, which may not be sustainable for their welfare”.

Farmer Talk Club chairman Phineas Mukomberanwa talked about the pitiful condition of farmers in Zimbabwe. He said “The auction mechanism must be resurrected. This is where we acquire the pricing matrix that is utilized to set contract floor prices.

Alternatively, we may need to devise a new pricing strategy that guarantees benefits for farmers. The existing system is heavily weighted in favor of contractors and is unsustainable.”

He went on to say that the contractual process itself should be examined to guarantee that farmers are not getting a bad bargain. Some contractors are still unable to provide appropriate input and working capital to farmers, resulting in significant product and financial losses.