Zimbabwe Tobacco Deliveries Rise 2% But Revenues Fall 24% As Prices Slump

Zimbabwe’s 2026 tobacco marketing season has closed on a mixed note. Farmers delivered 353.8 million kg, a 2% increase on last season, driven mainly by contract sales, according to the Tobacco Industry and Marketing Board (TIMB).

Despite the higher volume, industry revenues fell 24% year-on-year to $882.5 million after the average price dropped from $3.33 per kg to $2.49 per kg.

The season also recorded a 46% increase in rejected bales, which TIMB said highlights quality challenges that will be a focus ahead of the next production cycle.

With prices down and farmers receiving 70% of proceeds in US dollars and 30% in ZiG, many growers are struggling to cover dollar-denominated fertiliser, chemicals and labour costs.

Tobacco now supports 135,284 households, a 37% increase in recent years, so lower returns affect over a hundred thousand families.

TIMB and industry players have blamed lower prices on global oversupply and reduced buying, with China expected to cut purchases by about 10 million kg this season. Analysts say farmers need better market information to avoid flooding the market.

Planted area grew 15% to 164,536 hectares this season, but that expansion may not be repeated.

TSL Limited, which handles tobacco logistics, warned that early forecasts point to an El Niño-induced drought during the 2026/27 season and that, combined with lower prices in 2025/26, these factors may moderate farmer spending and agricultural activity in the forthcoming season.

TIMB says the priority now is improving leaf quality, enforcing the use of certified seed, and accelerating value addition from the current 10.78% towards a 30% target, as Zimbabwe pursues its long-term plan to grow tobacco into a $7 billion industry.

Related:

Tobacco Export Earnings Plunge Despite Bigger Harvest Tobacco Farmers Deliver Record Output