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CONTENTS PAGE
Contents
1.0 INTRODUCTION......................................................................................................... 2
2.0 ATTENDANCE REGISTER ................................................................................... 3-6
3.0 NATIONAL TOBACCO WORKSHOP PROGRAMME………………..……...7-8
4.0 REVIEW OF THE 2014 TOBACCO MARKETING SEASON ........................ 9-13
4.1 OFFICIAL CLOSURE OF THE 2014 MARKETING SEASON AND
OPENING OF 2014 NATIONAL TOBACCO WORKSHOP ........................ 14-18
5.0 PRESENTATIONS…………………………………………………………..…..19-82
2
1.0 INTRODUCTION
The 2014 Annual National Tobacco Workshop was held on the 7thof November 2014 at Rainbow
Towers Hotel in Harare. The theme of the workshop was “Improved Quality, Value Addition and
Improved Sustainability”.
The workshop was attended by 154 executives representing all sub-sectors of the tobacco
industry. The workshop was also attended, by invitation, delegates from India, who gave a
presentation on e-auctioning of tobacco. The President of the International Tobacco Growers
Association also attended and gave an updated report on the 6th Conference of Parties (COP6) of
the Framework Convention on Tobacco Control that was held in Moscow in October 2014.
A total of seven papers were presented with quality discussions in-between the presentations.
3
2.0 ATTENDANCE REGISTER
NAME COMPANY
1 J Gondo Tobacco Industry & Marketing Board
2 M Gudu Tobacco Industry & Marketing Board
3 A Matibiri Tobacco Industry & Marketing Board
4 Mrs Chizodza Tobacco Industry & Marketing Board
5 D J Simbi Tobacco Industry & Marketing Board
6 C Sukume Tobacco Industry & Marketing Board
7 T Dhliwayo Tobacco Industry & Marketing Board
8 Mrs Mumbengegwi Tobacco Industry & Marketing Board
9 V Zungu Tobacco Industry & Marketing Board
10 S Shanyika Tobacco Industry & Marketing Board
11 G Matenda Tobacco Industry & Marketing Board
12 L Chikweya Tobacco Industry & Marketing Board
13 R Sibanda Tobacco Industry & Marketing Board
14 S Baureni Tobacco Industry & Marketing Board
15 E Whingwiri Tobacco Industry & Marketing Board
16 F T Munetsi Tobacco Industry & Marketing Board
17 J Chitsike Tobacco Industry & Marketing Board
18 E Matsvaire Tobacco Industry & Marketing Board
19 J T Gonese Tobacco Industry & Marketing Board
20 R Boka Boka
21 W Bapire Tobacco Industry & Marketing Board
22 E Kapuya Tobacco Industry & Marketing Board
23 T Chindundu Tobacco Industry & Marketing Board
24 W Matizamhuka Tobacco Industry & Marketing Board
25 B Nyangombe Tobacco Industry & Marketing Board
26 K Kamba Tobacco Industry & Marketing Board
27 J Chadzimura Tobacco Industry & Marketing Board
28 F Munatswa Tobacco Industry & Marketing Board
29 N Madinga Tobacco Industry & Marketing Board
30 M Cremer Tribac
31 I Kewada Almar Distribution
32 R Kewada Almar Distribution
33 W Zidyambanje Boka
34 P Chagonda TSF
35 M Magaya MTC
36 C Foya I.L.T
37 N Kopeni Sunrise Tobacco
38 M Mashavave ACTA
4
NAME COMPANY
39 B Sekate FINGAZ
40 E Shumba WWF
41 S Chingawo Twine & Allied
42 E Maponde ZFU
43 M Bias Boka
44 R Machube Munaku
45 P Pswarayi Regal Insurance
46 D Beaucamp TANZI
47 J Day Tobacco Today
48 N M Chakanetsa NECF
49 M Musa Midriver
50 R Chakona XDS
51 O Musemburi Industrial Twines
52 T Pilime ZFC Ltd
53 R Mapako EMA
54 M Mutasa ZPTFA
55 C Kashangura TRB
56 Z Acutt Delports
57 A Tofa TIANZE
58 W Mvehena I.L.T
59 B Nleya Ministry of Agriculture
60 N Mashaya Entomon
61 M Mutepfa Shasha
62 M Chikudo Regal
63 G Murehwa NECF
64 G de Jong Savannah
65 O Kupeta PROFERT ZIM
66 A Nyanzira Afriflex Packaging
67 K Butler C.T.P
68 H Moret Boost Africa
69 B Kaswaurere Sunrise Tobacco
70 S Chikandiwa T.P.Z
71 B Henck TANZI
72 G Gumbo STC
73 G Young N.T
74 P Tate Profert
75 A Mavuma M.L.T
76 C Koga T.R.B
77 T Sigobodhla T.R.B
78 J Mutambanesango T.S.F
5
NAME COMPANY
79 S Munakiri Munakiri Leaf
80 D Njiva Gold Driven Group
81 T Nyamurera Alliance Insurance
82 S N Machaya CLARIFACT
83 S Chauruka K.M Agribusiness
84 K Langley M.T.C
85 S Masunga T.S.F
86 D Tapfira Leaf Trade
87 J Chidawanyika ZFU
88 D Maulani M.T.C
89 L T Gono Windmill
90 L Tendengu FDT
91 F van de Merwe FCTC
92 T Mahere T.R.B
93 DC Mhembere Z.F.U
94 L Mihoro T.P.Z
95 D Masasa Premier
96 C Rukweza Premier
97 T Moga Maxlucky Tobacco
98 E Mhishi Tacshen Investments
99 C Garapo Z.L.T
100 SDakwa Z.L.T
101 F Macheka Agribank
102 K Delport Delport Tobacco
103 L Gatsi TIANZE
104 C Mlambo Z.T.A
105 C Dhewa Knowledge Trust Africa
106 L Mujuru Leaf Trade
107 L Chipururu Olomide Trading
108 C Sithole T.S.F
109 T Chirindo Afriflex Packaging
110 P Mutero Leaf Trade
111 A Myburgh Maxlucky
112 J Kockott TRIBAC
113 A Molai Savannah Tobacco
114 N Bajpai NIIT Technology
115 E S Sriyathsa NIIT Technology
116 T Munhenga SP Advertising
117 Machini Boost Africa
118 C T Bokosho Midriver Tobacco
6
NAME COMPANY
119 P Marandure Z.P.T.F.A
120 J Tevera Z.C.F.U
121 R Patrick B.A.T
122 T N Kanonge E.R.U
123 I Mahufe Voedsel Tobacco
124 Kevin Farming & Mining
125 S Koti B.A.T
126 P Mathemera Curechem
127 A Bganya Z.L.T
128 G Machingura Xinhua News Africa
129 R Ambrose Z.T.A
130 E Gono ZB Bank
131 C Nyakudya Boka
132 T Chinogwenya EMA
133 W Chabikwa Zimbabwe Commercial Farmers Union
134 C Charumbira Windmill/CropLife
135 M Mavesera Holistic Innovations(ZPTFA)
136 A Mambu Forestry Commission
137 T Machemedze Z.B.C
138 T Chapendama Hwange Colliery
139 T Makwinja The Farming Magazine
140 F Tapfumaneyi ZB Bank
141 A Ajento Shasha Tobacco
142 J Tugwete Clarion Insurance Company
143 L Chiyangwa ZB Bank
144 S Matshazi Farmers Development Trust
145 F Dyirakumunda XDS
146 J Gatsi Z.P.T.F.A
147 L Kasango Ministry Of Agriculture
148 G Sixpence Lurshurst
149 W Chakanyuka Freelance Journalist
150 S Majore Safel Insurance Company
151 P T Mangena Premier Tobacco Auction Floor
152 J Rupere Zimbabwe Broadcasting Corporation
153 J Kativhu The Farming Magazine
154 M Chiremba Afriflex
7
3.0 NATIONAL TOBACCO WORKSHOP PROGRAMME
CLOSURE OF THE 2014 MARKETING SEASON AND 2014 NATIONAL TOBACCO WORKSHOP
"IMPROVED QUALITY, VALUE ADDITION AND IMPROVED SUSTAINABILITY"
Friday 7th November 2014
VIP Room, Towers Hotel, Harare
TIME PRESENTATION / EVENT PRESENTER DESIGNATION
0800 - 0825 Arrival and registration
0825 - 0830 Welcome remarks Dr A Matibiri CEO, TIMB
0830 - 0845 Review of the 2014 tobacco
marketing season
Mrs M Chinamasa Chairman, TIMB IN CHAIR: Mr N
Chiminya
0845 - 0900 Official closure of 2014 marketing
season and opening of 2014 National
Tobacco Workshop
Honourable Dr J M
Made
Minister of Agriculture,
Mechanization and
Irrigation Development
0900 - 0930 Update on the Framework
Convention on Tobacco Control
Mr F van der
Merwe
President, International
Tobacco Growers
Association
0930 - 1000 e-Auctioning of tobacco in India Mr E S Srivathsa Senior Project Manager,
NIIT Technologies, India
1000 - 1015 DISCUSSION
1015 - 1030 TEA BREAK
1030 - 1100 Prospects for value addition in the
tobacco industry
Mr A Molai Executive Chairman,
Savanna Tobacco
IN CHAIR: Prof D
J Simbi
1100 - 1130 Risk management in tobacco contract
farming
Mr K Butler Managing Director,
Chidziva Tobacco
Processors
1130 - 1200 Participatory forestry management
applicable to small-scale tobacco
farmers
Dr E Shumba Miombo Ecoregion
Conservation
Programme Leader,
WWF
1200 - 1230 Tobacco research highlights Dr D Garwe General Manager,
Tobacco Research Bd
1230 - 1255 DISCUSSION
1255 - 1300 VOTE OF THANKS Mr J T E
Mapondera
Board Member, TIMB
1300 – 1400 LUNCH
8
4.0 REVIEW OF THE 2014 TOBACCO MARKETING SEASON
SPEECH BY MRS MONICA CHINAMASA, CHAIRPERSON TIMB
CLOSURE OF THE 2014 MARKETING SEASONAND2014 NATIONAL TOBACCO WORKSHOP
I. SALUTATIONS
1.1 Honourable Deputy Minister of Agriculture, Mechanization and Irrigation Development,
Cde Davis Marapira (for Crops, Mechanisation and Irrigation Development)
1.2 Senior government officials present here;
1.3 Fellow Board members, management and staff of the Tobacco Industry and Marketing
Board;
1.4 Captains of the tobacco industry, (buyers, contractors, auction floors and other industry
service providers);
1.5 Heads of other state enterprises and parastatals;
1.6 Tobacco farmers, leadership of farmers’ unions and relevant commodity associations;
1.7 Ladies and gentlemen,
1.8 Good morning to you all.
2. REMARKS
2.1 We are gathered here once again to review yet another successful tobacco marketing
season and also planning for the coming season.
2.2 This is the fourth year in a row that we witness the official closure of the marketing season
while simultaneously participating in the National Tobacco Workshop.
2.3 Honourable Minister, it is no accident that the theme for this year’s workshop is
“Improved Quality, Value Addition and Improved Sustainability” but that these are some
of the topical issues that should be addressed so as to consolidate growth in the tobacco
sub-sector.
2.4 In pursuit of bigger income, growers are normally tempted to increase their planted areas
without paying particular attention to improvement of quality.
2.5 Consequently, this strategy mostly generates results that radically contradict the grower’s
expectations.
9
2.6 Aware of this possible outcome, I advise great caution against increasing hectares at the
expense of improvement in quality.
2.7 Zimbabwean tobacco is a high quality product, but there are market limits for its demand
depending on the prevailing market forces.
2.8 Thus, to survive under the unpredictable market conditions, growers must focus their
control on variables such as quality, costs and efficiencies.
2.9 Honourable Minister, at national level, ZIMASSET set a national developmental plan under
four key clusters of which “Value addition and Beneficiation” is one of these clusters.
2.10 The value addition and beneficiation strategy is anchored on the private sector taking a key
role in adding value to our primary products such as tobacco.
2.11 Therefore, the country needs more investments in cigarette manufacturing so as to realise
more revenue from the exports of cigarettes rather than exporting semi-processed leaf
which is tantamount to exporting jobs to other countries.
2.12 Similarly, more innovation is needed in creating value from other tobacco derivatives such
as stems and fines which can be incorporated into cigarette blends hence creating more
value.
2.13 Honourable Minister, this year’s workshop theme also looks at improved sustainability.
2.14 The need for sustainable tobacco production is not only limited to meeting the
requirements of certain market niches but that it is also an ethical obligation on our part to
share wealth from natural resources, developed over a long period of time with future
generations.
2.15 Honourable Minister, using moral suasion to encourage contractors and growers to comply
with sustainable production has not worked as per our expectations and I call upon
enactment of a policy framework that can bring about total sustainability in tobacco
production.
2.16 Honourable Minister, this workshop is coming after a very successful tobacco season.
2.17 I would like to applaud farmers for their hard work and contractors who assisted in the
funding of production.
2.18 The 2014 tobacco marketing season commenced on Tuesday, 16th February 2014 and ran
for a total of 129 days compared to 140 selling days during the previous year.
10
2.19 The number of active registered growers for flue cured tobacco increased from previous
season by 21% to 87 166 of which 44% and 56% delivered to the auction and contract
respectively.
2.20 In addition, there were 53 and 37 registered burley and dark air-cured tobacco growers,
respectively.
2.21 The total hectares increased by 21% from previous season to 107 371 Ha.
2.22 Three auction floors, Tobacco Sales Floor (TSF), Boka Tobacco Floor (BTF) and Premier
Tobacco Floor (PTF) were licensed to operate this year.
2.23 This year, a total of 19 companies were licensed to operate as ‘A’ Class buyers.
2.24 Fifteen (15) companies were licensed as contract buyers.
2.25 For the consecutive third year, decentralised contract buying points were operated by one
contractor in Rusape and Karoi and for the first time in Mvurwi.
2.26 Honourable Minister, my Board welcomes the decentralised contract sales and would like
to encourage other contractors to emulate this noble idea.
2.27 Total flue cured tobacco sales increased from previous season by 30% to 216 196 683
million kg, with contract sales accounting for 76.5% of the sales.
2.28 The 2014 seasonal average price per kg for flue-cured tobacco was 14% softer at US$3.17
compared to 2013 season.
2.29 Notwithstanding the softer prices, the revenue to growers increased by 11.94% from the
previous season to US$685 244 013.
2.30 As for burley tobacco, a paltry 22 654 kg were sold this season.
2.31 Dark air-cured tobacco sales were down by 68% from previous season to 86 615.40 kg with
a total value of US$137 047.82.
2.32 Ladies and gentlemen, since inception in 2011, the national tobacco workshops have
helped to address pertinent issues affecting all phases of the tobacco value chain from
seed to smoke.
2.33 Last year, the stakeholders gathered at Wild Geese Lodge to address the following
challenges;
Deforestation
Growers’ failure to adhere to legislation
High default rate by contracted growers
Tobacco insurance challenges
11
Food security
Contractors’ Challenges with the stop order facility
High input costs
Inadequate infrastructure
2.34 Honourable Minister, the industry is implementing a number of initiatives in order to
reduce negative environmental foot print associated with tobacco production especially
deforestation.
2.35 The industry is driven by the notion that the economic benefits derived from tobacco
production should never be allowed to sacrifice the associated environmental concerns.
2.36 Thus, the industry has put in place some initiatives to produce tobacco in a sustainable
manner to protect biodiversity and foster the development and maintenance of healthy
ecosystems.
2.37 These initiatives include aggressive re-afforestation programmes through Sustainable
Afforestation Association, afforestation programmes through contractors and other
organisations such as TIMB and TRB.
2.38 The Tobacco Industry and Marketing Board (TIMB) has partnered with Zimbabwe Tobacco
Association (ZTA) to produce more than 300 000 gum tree seedlings annually that are
disbursed to tobacco growers.
2.39 Additionally, the industry is also promoting the use of fuel efficient curing systems such as
the rocket barns.
2.40 One such programme is the rocket barn revolving fund set up by TIMB which will be
launched later today, where TIMB will fund construction of more than 100 rocket barns
annually.
2.41 Honourable Minister, research and development is at an advanced stage to facilitate use of
other renewable sources of energy for curing tobacco.
2.42 These include use of biogas and solar hybrid barns and giant bamboo.
2.43 Efforts are also underway to facilitate tobacco growers to use coal for curing tobacco by
packaging coal in smaller 50 kg packs that can be afforded by the small scale growers.
2.44 Additionally, the industry launched farmer awareness and education programmes to train
growers on the importance of legislation in tobacco production especially the destruction
of tobacco stalks.
12
2.45 One such initiative is the partnership between TIMB and FDT where 100 different growers
are trained per month at each of the four FDT training centres. This is a calendar based
training covering all aspects of tobacco production.
2.46 Honourable Minister, to ensure food security at household level, I am happy that tobacco
contractors are also supplying inputs for food crops.
2.47 We have also seen some improvements since the last workshop as many contractors are
now providing inputs as agreed in the contracts.
2.48 The previous workshop also tackled issues to do with high default rate by contracted
growers.
2.49 Subsequently, TIMB will continue to engage all stakeholders to pursue means to curtail
side marketing.
2.50 One such effort being pursued is the tracking and barcoding of all tobacco bales which shall
be piloted in the 2015 marketing season.
2.51 Honourable Minister, It is expected that this workshop will continue to focus on challenges
in the tobacco industry.
2.52 My Board working together with the Ministry of Agriculture, Mechanisation and Irrigation
Development will embrace all the meaningful recommendations from this workshop as this
will ensure that Zimbabwe consolidates its position as one of the leading exporter of
quality flavour style tobacco.
2.53 It is now therefore, my pleasure to call upon, our Guest of Honour, the Honourable
Minister of Agriculture, Mechanization and Irrigation Development, Dr Joseph M Made
(MP) to deliver his address.
2.54 Thank you / Siyabonga / Tatenda
13
4.1 OFFICIAL CLOSURE OF THE 2014 MARKETING SEASON AND OPENING OF 2014 NATIONAL TOBACCO WORKSHOP SPEECH BY: Hon Minister Dr J M Made. Minister of Agriculture, Mechanization and Irrigation
Development
I. SALUTATIONS
1.1 Permanent Secretary in the Ministry of Agriculture, Mechanization and Irrigation
Development represented by Mr Gondo;
1.2 The Chairman, Mrs Chinamasa, Board members and staff of the Tobacco Industry and
Marketing Board;
1.3 Senior government officials present here
1.4 Captains of the tobacco industry, (buyers, contractors, auction floors and other industry
service providers);
1.5 Heads of other state enterprises and parastatals;
1.6 Tobacco farmers, leadership of farmers’ unions and relevant commodity associations
1.7 Ladies and gentlemen;
1.8 Good morning to you all.
II. REMARKS
2.1 It is with great pleasure and satisfaction that I address this fourth edition of the National
Tobacco Workshop, which runs alongside the official closure of the 2014 tobacco
marketing season.
2.2 The tobacco sector has seen positive significant transformation over the past 5 years.
2.3 In this regard, I attribute this growth to hard working tobacco growers and to the
contractors who have played a pivotal role in financing production under the debilitating
illegal sanctions imposed by western countries.
2.4 Esteemed guests, it is indeed gratifying and commendable that stakeholders in the tobacco
industry are continuously being afforded an opportunity to deliberate on issues that affect
their performance.
2.5 Thus, as we deliberate on the day’s business, focus should remain on elements that
complement and enhance sustainable tobacco production, increase grower viability
through improved quality and tobacco value addition.
14
2.6 As such, this workshop’s theme “Improved Quality, Value Addition and Improved
Sustainability” is relevant to pertinent issues affecting the industry.
2.7 This year’s workshop comes after a successful agriculture season and signals the start of
yet another successful new season judging from the news we received from the
Meteorological Department that we will experience a normal to above normal rainfall
season.
2.8 Madam Chair, pursuant to mitigating the vagaries of climate change and ensuring
successful cropping, Government has intensified the process of irrigation development and
rehabilitation to curb the effects of recurrent droughts that the country and the region
face.
2.9 Resultantly, my Ministry has mobilised a total of US$98 million Loan Facility from Brazil
under the More Food Africa (Zimbabwe) Programme.
2.10 This loan is in the form of supply of irrigation and mechanisation equipment.
2.11 To date, a contract between the Ministry and suppliers for the first tranche of
US$38million was signed and this first tranche has already been received and will be
disbursed in time before commencement of the imminent summer cropping season.
2.12 Esteemed guests, we have this year seen positive developments not only in tobacco but
maize and small grain production.
2.13 Accordingly, in conformity to the need to improve food security at both household and
national levels, and consistent with the objectives and priorities of ZIM ASSET, Government
in collaboration with other key stakeholders such as input suppliers, financiers and
farmers, is putting in place various financing strategies in support of the 2014/15
agriculture season.
2.14 Thus, Government is mobilising about US$252.3 million in support of agriculture under
Presidential Input Scheme.
2.15 At regional level, the recent SADC summit reviewed the regional food and nutrition
security and noted increases in food production in the 2013/14 season.
2.16 However, the summit also noted that humanitarian assistance and malnutrition still remain
a challenge and to this end, the summit endorsed a regional food and nutrition security
strategy for 2015-2025 to ensure improved food availability, accessibility and utilisation in
a more sustainable manner.
15
2.17 At continental level, the Heads of State and Government of the African Union, having met
at their Twenty Third Ordinary Session of the AU Assembly in Malabo, Equatorial Guinea,
from 26-27 June 2014, declared the year 2014 as the African Year of Agriculture and Food
Security.
2.18 The focus of this declaration will be in “Transforming Africa’s Agriculture for Shared
Prosperity and Improved Livelihoods through Harnessing Opportunities for Inclusive
Growth and Sustainable Development and also marking the tenth Anniversary of the
Adoption of the Comprehensive Africa Agriculture Development Programme (CAADP)”.
2.19 CAADP focuses on improving and promoting agriculture across Africa, as a major tool for
enhancing food security and economic development.
2.20 Zimbabwe assented to the CAADP framework on 22 November 2013 and has made
significant millage in developing the roadmap to implement the framework.
2.21 To date, a Zimbabwe Agricultural Investment Plan, a CAADP implementation plan has been
developed and is being implemented.
2.22 Madam Chair, this year’s workshop theme also includes value addition which isa very
crucial aspect to enable the country to fully enjoy the benefits of tobacco production.
2.23 Consistent with ZIM ASSET, which emphasises the need to valueadd and beneficiate our
mineral and agricultural resources, it will be necessary that we buttress the value addition
initiative, extending this to such agricultural commodities as tobacco and cotton currently
being exported in raw form.
2.24 The country should take advantage of exporting cigarettes into the COMMESA region to
benefit from the trading policies of a common market and a free trade area.
2.25 Ladies and gentlemen, Zimbabwe at one time was a proud exporter of more than 4 billion
sticks of cigarettes and regrettably most of our traditional importers of cigarettes have
resorted to importing from other markets.
2.26 Currently, most countries in Sub-Saharan Africa are expanding their cigarette outputs in
order to benefit from rising cash income from many workers in cities and countries with
increasing exports of petroleum and other natural resources and Zimbabwe should benefit
from the same.
2.27 Regrettably, Zimbabwe with a huge competitive advantage in producing tobacco leaf is not
leveraging on that advantage to export cigarettes and yet other Sub-Saharan countries
16
such as Senegal which does not produce a single leaf is the third ranked major exporter of
cigarettes in Sub-Saharan Africa after Kenya and South Africa.
2.28 Madam Chair, my Ministry is prepared to work with other Government departments and
the industry to conduct research on where we may find customers for cigarettes in Sub-
Saharan Africa.
2.29 This research will be a helpful tool in planning for the establishment of new cigarette
factories or expanding existing operations and other investment facilities.
2.30 Madam Chair, this year’s workshop theme also seeks to address sustainability issues in
tobacco production.
2.31 Government appreciates all the initiatives that are being done by industry players to
improve sustainability.
2.32 To consolidate these efforts, my Ministry will soon work on new policies that engender
sustainability in tobacco production.
2.33 At regional level, the 34th SADC summit held in Victoria Falls in August 2014 signed a legal
instrument regarding the protocol on environmental management for sustainable
development which will soon be ratified resulting in relevant legislation being enacted.
2.34 In short, ladies and gentlemen, my Ministry will engage any entity, nation or regional block
in every possible way, to ensure that tobacco remains the mainstay of our economy.
2.35 Esteemed guests, I do hereby re-affirm the Government’s support for tobacco production
in spite of unfavourable regulations from WHO’s FCTC and Europe’s Tobacco Products
Directive.
2.36 Madam Chair, I call upon Governments and public health communities to consider more
progressive approaches to health related issues of tobacco consumption rather than
considering tobacco producing countries and growers as partners who lack legitimacy in
any related public health discussions.
2.37 With these few remarks, allow me esteemed guests to officially declare the end of the
2014 marketing season and to declare this National Tobacco Workshop officially opened.
2.38 I wish you all a very productive 2014/15 agricultural season and fruitful deliberations
during the workshop.
2.39 May the Lord bless Zimbabwe. May God bless you all.
2.40 I thank you.
17
5.0 PRESENTATIONS
5.1 UPDATE ON THE FRAMEWORK CONVENTION ON TOBACCO CONTROL
ZIMBABWE TIMB TOBACCO WORK SHOP
7 November 2014
Francois van der Merwe – ITGA President
FCTC COP6 Feedback
Reduced riskE-cigs, smokeless
COP6 – 13-18 October 2014, Moscow
Art. 6Price and Tax
Art. 9&10Product Regulation
Art. 19 Liability
International Trade Challenges
Art. 17&18Tobacco Farming
Art 5.3Exclusion
18
.
FCTC – 10th anniversary
• Growing pressure on governments to accelerate FCTC implementation, including guidelines
• Tobacco control in development plans
• Expert advice on drafting legislation
• Legal advice on challenges to tobacco measures
The tobacco sector is to lesser or greater extent excluded from policy development and there is increasing sensitivity to engage with the sector – all because of?
FCTC ARTICLE 5.3
• Article 5.3 seeks to preserve the integrity of legislative process from undue influence
• We believe this article is misinterpreted by many and aggressively fuelled by the anti-tobacco lobby!
5.3 “In setting and implementing their public health policies with respect to tobacco control, Parties shall act to protect these policies from commercial and other vested interests of the tobacco industry in accordance with national law”.
Rules of Engagement
19
20
21
22
23
24
25
26
27
28
5.2 e-Auctioning of tobacco in India
29
30
31
32
33
34
35
Auction Monitoring and Recording Process
11/11/201415
Post Auction
Auctioned Bales
Grower Grower Trader /BuyerTrader /Buyer
Is the Auction of the baleAccepted
Move To Godown
Return to Grower
No Yes
Issue Delivery GatepassIssue Delivery Gatepass
Issue GatepassIssue Gatepass
11/11/201416
36
Software Development Cycle
11/11/201417
Project Management Practice
Delivery Head
Team Members
Project Lead /
Technical Architect
Project Manager
Quality Control
SEPG Group
Auditors
BU Head
11/11/201418
37
Implementation Challenges
Educating the local non IT Savy staff of Board and
traders.
Removing the fear of employment retrenchment.
Setting up & maintaining infrastructure in limited
support availability at remote places.
Skilled Staff Availability.
Providing the first level support concept to the onsite
engineers.
Consistent change management and making the
auctions process uniform across.
Challenges
11/11/201419
Our Capabilities
o Good understanding of domain.
o Well versed in developing and supporting J2EE and
.net mobile applications and across technology
streams.
o Good understanding of functionality and process of
auctioning.
o Experienced quality management process ( CMMI
level 5) in the organization.
o Good technical skills in developing and supporting
applications.
11/11/201420
38
Questions & Clarifications
11/11/201421
39
5.3 Prospects for value addition in the tobacco Industry
Savanna Tobacco
Pride in being Zimbabwe’s Finest Cigarettes
Pacific Blue – Bronze Award Pacific Storm – Silver Award
Pacific’s Monde Selection Award-Winning brands –Only other Zimbabwean brand to be recognised at these
awards is Delta’s Golden Pilsener in 2013
40
The Tobacco Value-Chain
Zimbabwe’s Finest Cigarettes
41
Value-Addition- The Root of Economic Self-Reliance
$3.00/kg
$30-$60/kg
Zimbabwe’s Finest Cigarettes
42
43
44
45
5.4 Risk Management In Tobacco Contract Farming
Contents:
Background
Why do Merchants Contract Farmers?
What does Tobacco Contract Farming Entail?
How do Contractors Secure the Loans?
Why Don’t Farmers Pay Back Their Loans?
2015 Projected Average Price & Production Estimate
Managing the Risk
Caution…
The Trade’s Small Scale Debt 2013 & 2014
What Does this Mean?
Suggested Improvements
Summary
46
Background
Tobacco Contract Growing was established in around 2005.
In 2014 approximately 76% (165m kgs) of all Zimbabwe tobacco was purchased through the Contract System.
Of this amount, about +-105m kgs was under small scale production and about 60m kgs under large scale production
Why do Merchants Contract Farmers?
Security of production – Zim coming off a recent very low production base.
Traceability of product and to ensure farmer compliance with appropriate chemical and pesticide use, reduced NTRM.
To engage and assist farmers to produce tobacco in a sustainable manner and thereby protect the environment.
Very little commercial or institutional lending available to farmers.
Bulk procurement discount of inputs in a “high cost of doing business” environment reduces the cost of production and increases farmer viability.
47
What Does Small Scale Tobacco Contract Farming Entail?
Contractors lend farmers money that is required to be sourcedoffshore.
The value of the loans to small scale farmers is usually made up of someor all of the following:
•GAP Inputs comprising fertiliser, chemicals, coal, fuel and so on
•Application Equipment
•Packaging materials
•Cash and Interest
•In general small scale farmers will receive a total loan value ofbetween $1,200 – $2,000 per Ha. This varies from company to company.
•In general contractors provide free agronomy services to theirgrowers at significant costs to themselves.
•In almost all cases, marketing costs are significantly subsidised togrowers
How do Contractors Secure the Loans?
• Small Scale Contract Farmers require funding from September to February of each growing season.
• Prior to the receipt of a contract, each farmer undergoes a thorough verification process by CTP. This includes confirmation of the farmer’s status with the Tobacco Industry and Marketing Board (TIMB) and the private XDS Credit Bureau as well as confirmation from the field of each farmers location, suitability, reputation and access to land.
• On successfully completing the vetting process a grower is registered with the TIMB and provided with a contract.
• Contracts include the farmer agreeing to a registered direct debit (Stop Order). This registers each farmer’s debt to CTP with the Registrar of Stop Orders. This process is supposed to ensure that CTP is the primary beneficiary of any tobacco sales proceeds associated with the farmers in question.
• Farmers provide a Pledge of Assets schedule in case of default
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Why Don’t Farmers Pay Back Their Loans?
This is due to one or often a combination of thefollowing risks:
•Poor farmer selection
•Fraud (side marketing)
•Crop failure and/or low viability
•Hail or extreme weather
•Death or illness
•Obfuscated paperwork and ID’s
•Other
How does one mitigate or manage these risks?
2015 Projected Average Price & Total Production
– Viability Risk
2015 Price &
Mass
Projection
49
Managing the Risk
Merchants invest significant sums each year to mitigate againstthese risks in a variety of ways:
Vetting of farmers past production and credit records to assist insecuring creditworthy, good, reliable and viable farmers
Deployment of agronomic field staff for farmer capacity buildingand advice to improve production, quality and growing skills andtherefore viability and repayment potential.
Deployment of in field, real-time solutions to measure and reactto the performance of Farmers & Field Staff.
Deployment of Loss Control agents in the field at grading time tomitigate against side marketing and arbitrage traders.
Retain growers with a proven track record in good productionareas.
Select growers in better farming regions
Do you know where your growers plots are?
50
Caution….
1. Importantly the previous slide’s list of measures is not exhaustive.
2. Tobacco contracting risk management is not an exact science, is very expensive and always evolving.
3. Be aware of the Law of diminishing returns.
4. Relative success is usually how well you apply the multitude of mitigatory measures from start to finish of the season. You cannot rely on a few “big bang” controls, you have to do lots of things well.
The Trade’s Small Scale Debt 2013 & 2014
Total Contractor loans to ALL small scale tobaccofarmers this past season was approximately $80million
In 2014 approximately 10% or $8 million of this figureremains unpaid and is a very similar figure for theprior 2012-13 season.
This equates to +-$16 million in unpaid small scaleloans in the last 2 seasons alone.
51
What does this mean?
On the surface it would appear that collectively the Trade is not doing a very good risk management job.
The Trade is cutting back on its support. Consolidation.
What would help our risk management efforts and improve these numbers?
A more robust application of the law against Stop Order dodgers and side marketers.
Putting a halt to the spread in the number of arbitrage traders.
Halting the annual proliferation of the issuance of new grower numbers for speculative purposes
Managing the growth in the Crop Size to fit the market’s demand. Av price and viability.
Suggested Improvements
More comprehensive use of resources such as the XDS Credit Bureau in the vetting of the credit worthiness of growers.
The improved accuracy of such credit data bases.
Significantly improved documentary and physical evidence linking the grower number to proof of access to land and that the land has been utilised to grow tobacco in any marketing season.
No land utilisation = grower number not activated for that season
A more robust enforcement and holistic approach to eradicating the side marketing scourge including participation from multiple Ministries involved in the various processes, eg: Finance, Justice and Home Affairs to name a few. This is not just an Agricultural or TIMB problem to solve.
Improved crop size estimations and statistics
52
Summary
Credit Risk Management requires a delicate balance
between the measures you implement to alleviate the risks
versus the cost of implementing those measures and
thereby what you save vs what you spend.
These measures implemented might include:
Subsidised inputs & subsidised transport of inputs & bales
Hail insurance, Life Insurance and so on
But at what cost vs the hopefully improved loan
repayment rate?
Thank you.
53
5.5 Participatory Forestry Management Applicable To Small-scale Tobacco Farmers
Participatory Forest Management applicable to small-scale tobacco farmers
Contextual framework
1. 48% of Zimbabwe is under natural forests & woodlands and 27% is
cultivated
2. The forests are rich in biodiversity and support eco-system
functioning
3. The bulk of the forests fall in the public domain – PFM
4. Most have low economic value – few timber species
5. Appetite to convert them into higher economic return venture is
therefore high
6. Country’s forestry resource is being lost at 330 000 Ha per year
7. Tobacco curing is a major contributor to this loss in tobacco areas
54
11 November 2014 - 3
The Tobacco Lifeline
55
Tobacco Lifeline (cont.)
1. Major foreign currency earner: 10.7% of GDP in 2013
2. Registered growers were 105 000 in 2014
3. Crop spreading into non-traditional provinces/areas
4. 210 million kg of leaf sold in 2014 (about 70% wood cured)
5. Wood energy footprint -20m3 cures 1 ton of leaf (traditional barn).
6. Wood energy footprint in forest area equivalent is very high (3 million
m3 equivalent).
7. A BUSINESS AS USUAL APPROACH WILL NOT SUSTAIN THE
INDUSTRY AND THE ENVINRONMENT
© M
ich
el R
og
go
/ W
WF
-Can
on
6
Tobacco footprint
56
Current mitigation initiatives
1. Coal of use
• Not taken off well due to various challenges-e.g. barn design
2. Improving wood use efficiency – modern barns
• Cost implications
• Awareness on the technology
3. Promoting eucalyptus based woodlots
• Fast growth
• Good coppicing ability
Disadvantages
• Not an excellent wood source
• Negatively impacts on biodiversity
• Negatively impacts on ecosystems especially with climate change
• Opportunity cost of using exotic wood for tobacco curing
• Possible diversion to commercial timber industry (returns)
• Risks of monocultures-e.g. diseases, red gum psyllid.
© M
ich
el R
og
go
/ W
WF
-Can
on
8
Disease risk (red gum psyllid)
11/11/2014 - 8
57
Current mitigation measures (Cont.)
4. Enforcement of S1 116 0f 2012 on indigenous wood movement and
use.
• Limited technical capacity
• Limited institutional coordination
Recommendations
1. Current initiatives on enhancing curing efficiency should
be continued and supported by further research
2. Current initiatives on eucalypt woodlots should be
continued and supported by:
• A broader analysis and conceptualization of their fit
and utility in tobacco curing.
• Research on broadening the species range, including
indigenous species
58
Recommendations (Cont.)
3. Support management of indigenous forests by:
• .Strengthening community level governance structures
for SFM
• Supporting the development of SFM plans & their
implementation
• Promote enrichment planting & related research
• Support value addition to natural forestsDisadvantage:
No immediate return on investment but guarantees sustainability
environmental health-corporate social responsibility!
Recommendations (Cont.)
4. Research into alternative energy sources e.g. sawdust
briquette; bagasse; and bamboo.
IT IS NOT ABOUT A SILVER BULLET, BUT A BASKET OF
OPTIONS THAT FOSTERS SUSTAINABLE SOCIO-
ECONOMIC DEVELOPMENT.
59
Potential role of WWF
1. WWF Zimbabwe is supporting a $600K initiative on SFM
over 3 yrs
2. WWF is happy to join with Industry players in such
sustainability related initiatives.
Thank you
60
5.6 Tobacco Research Highlights
“TOBACCO RESEARCH
HIGHLIGHTS”
TIMB NATIONAL TOBACCO WORKSHOP
Dr. C. Kashangura
TOBACCO RESEARCH BOARD, KUTSAGA
OUTLINE
1. Root knot resistant cultivars
2. Alternative agrochemicals for nematode control
3. New agrochemicals for insect control
4. New varieties
5. Training And Extension
6. Conclusion
61
TOBACCO RESEARCH
In Zimbabwe, tobacco research is undertaken by the Tobacco Research Board (TRB).
TRB’s mandate is “To direct, control and carry out tobacco research in Zimbabwe and …such other research outside Zimbabwe as it considers expedient ” (Chapter 18:21, Section 4)
TOBACCO RESEARCH
Research on all aspects of tobacco
growing is undertaken by a team of
scientists.
1. Agronomists
2. Soil scientists
3. Plant Physiologists
4. Plant Pathologists
5. Entomologists
6. Nematologists
7. Plant Breeders
8. Molecular biologists
9. Agricultural Engineers
10. Training Team
62
Research Objectives
To maximize economic value from
sustainable and responsible tobacco
production practices
Through the development and provision
of elite varieties, and innovative agro-
based technical services and products.
THE HIGHLIGHTS
63
ROOT KNOT RESISTANT
CULTIVARS
ROOT KNOT RESISTANT CULTIVARS
TRB’s mission is to provide growers with high-yielding, superior quality multi-
disease resistant varieties.
All the latest varieties are resistant to 9
diseases including root-knot nematode.
64
ROOT KNOT RESISTANT CULTIVARS
Most of the new varieties can be grown successfully even without a nematicideprovided proper rotations are
followed. Resistant Variety Susceptible Variety
Fumigated and Unfumigated plots – KM10
UNFUMIGATED KM10 FUMIGATED KM10
10
65
IN FUMIGATED AND UNFUMIGATED PLOTS - T 71
UNFUMIGATED FUMIGATED
11
Fumigated and Unfumigated plots – K RK66
UNFUMIGATED FUMIGATED
12
66
Alternative
agrochemicals for
nematode control
New alternative Nematicides
•Most fumigant nematicides such as
methylbromide, EDB and 1,3D are being
banned, phased-out, or their use is
being heavily restricted.
•Thus TRB has been endeavoring to find
effective replacements
67
ALTERNATIVE NEMATICIDES
• A lot of research has
been ongoing in the
World on alternative
nematicides for use in
high value crop
production systems
• And ….
Nematicides that will be relied upon in high-value crops in the US for
nematode and soilborne disease control in a world without MeBr
CHEMICAL NAME COMMON NAME TRADE NAME
Trichloronitromethane Chloropicrin Chloropicrin
Sodium N-
methyldithiocarbamateMetham sodium Vapam
Potassium N-
methyldithiocarbamateMetham Potassium K-Pam
Tetrahydro-3,5-dimethyl-2H-
1,3,5- thiadiazine-2-thioneDazomet Basamid-G
Methyl iodide Iodomethane Midas
[Methyl NN-dimethyl-N-
[(methyl carbamoyl)oxy]-1-
thiooxamimidate
Oxamyl Vydate
Dimethyl disulfide DMDS Paladin
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ALTERNATIVES ON TOBACCO IN ZIMBABWE
CHEMICAL NAME COMMON NAME STATUS IN ZIM
Sodium N-
methyldithiocarbamateMetham Sodium
Potassium N-
methyldithiocarbamateMetham Potassium
Tetrahydro-3,5-dimethyl-2H-
1,3,5- thiadiazine-2-thioneDazomet/ Basamid
Methyl iodide Iodomethane
[Methyl NN-dimethyl-N-
[(methyl carbamoyl)oxy]-1-
thiooxamimidateOxamyl
Dimethyl disulfide DMDS
Trichloronitromethane Chloropicrin
Root galling scores in Metham
sodium treated plots
0
1
2
3
4
5
6
Control Methyl
bromide
MeNa
50ml
MeNa
100ml
MeNa
150ml
Ga
ll r
atin
g (
Sc
ale
0 -
8)
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Weed populations in Me-Na Plots
0
200
400
600
800
1000 Broad leaved weeds
Grasses
No
. o
f w
ee
ds
pe
r m
2
MeBr
treated
MeNa
treated
ContNothing applied
Effectiveness of Metham Sodium for
nematode and weed control in the
seedbeds
70
Tobacco
Agrochemicals
Agrochemicals : TRB’s Main Focus
• to replace a number of agrochemicals no longer acceptable for use worldwide
• to search for “greener” alternatives in compliance with the global trend in moving towards a reduced carbon footprint
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Recommended Replacements for
banned agrochemicals - Seedbeds
Pest/Disease Non-recommended agrochemical
Recommended Replacement
Aphids & leaf-eaters
Acephate, Methamidophos, Monocrotophos
Imidacloprid, Thiamethoxam,
Acetamiprid
Imidacloprid+ betacyfluthrin
Cutworm Acephate, Methamidophos, Monocrotophos
Imidacloprid+ betacyfluthrin,
Recommended Replacements for banned
agrochemicals - Fields
Pest/Disease
Not recommended
Recommended Replacement
Cutworm Fenvalerate Chloranthraniliprole+lambdacyhalothrin, Imidacloprid+ betacyfluthrin, Imidacloprid+lambdacyhalothrin, Alphacypermethrin, Chlorpyrifos, Delatamethrin & Lambdacyhalothrin
Aphids, leaf-eaters
Methamidophos, Monocrotophos, Acephate
Dimethoate, Thiacloprid, Imidacloprid, Thiamethoxam, AcetamipridImidacloprid+ betacyfluthrin, Imidacloprid+lambdacyhalothrin, Acetamiprid+lambdacyhalothrin & Belt expert
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Recommended Replacements for
banned agrochemicals - Fields
Pest/Disease Not recommended
Recommended Replacement
Nematodes 1.3D, Aldicarb Fenamiphos, Oxamyl, Metham sodium
Budworm Acephate, Methamidophos, Monocrotophos
Methomyl, Flubendiamide(Belt), Indoxacarb, Imidacloprid+lambdacyhalothrin, Rynaxypyr & HGW
Leaf-miner Acephate Cyromazine
Frogeye Benomyl Azoxystrobin, Tebuconazole & Iprodione
EFFECTIVENESS OF SYSTEMIC APHICIDES
0
1
2
3
4
7 WAP 8 WAP 9 WAP 10 WAP
Ap
hid
sc
ore
(0
-4)
Cont
Thiamethoxam
Imidacloprid
Abam/thia(Solvigo)
Fipronil
Imida/lambda
Imida/beta cyfluthrin
(Thunder)
Scale
1 : 1-10 aphids
2 : 11 – 100 aphids
3 : 101 – 1000 aphids
4 : > 1000 aphids
73
0
1
2
3
6 WAP 7 WAP 8 WAP 9 WAP
Untreated control
Thiacloprid
Acetamiprid
Aceta+lambda
Imida + β-Cyfluthrin
Ap
hid
Sc
ore
(0
-4)
EFFECTIVENESS OF CONTACT APHICIDES
(Calypso)
Scale
1 : 1-10 aphids
2 : 11 – 100 aphids
3 : 101 – 1000 aphids
4 : > 1000 aphids
Applied
here
NEW TOBACCO VARIETIES
74
T 72
T 71
75
NEW VARIETIES ON LIMITED
RELEASE
• T 70
• T 73
• T 74
• T 75
• T 76T 73 - Trelawney
TRAINING AND EXTENSION
76
• Tobacco Improved Productivity Sites (TIPS)
• Demonstration sites in tobacco growing areas
• Calendar-based theoretical and practical training sessions on various aspects of tobacco growing (5 666 farmers trained in the 2013/14 season)
Kutsaga TIPS
• Emphasizes adopting a hands-on learning approach on the tobacco production processes
• Best tobacco practices are carried out by the local participants on selected sites across all tobacco growing districts
• Sites dedicated to the advancement of the tobacco industry through the provision of focused, local, relevant and practical farmer skills development
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Kutsaga TIPS
• At each site, the host farmer and the area AGRITEX Officer are trained for a season on all aspects of Best Tobacco Practices
• At the end of the season the AgritexOfficers and the growers who successfully complete the training are given certificates and those who excel are given exciting prizes.
Certification of successful AGRITEX officers & TIPS
participants.
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CONCLUSION
We believe the economic prosperity of the tobacco industry is largely spurred by TRB’s insightful research, product development and technology transfer.
All these are deliberately designed to meet both the current and perceived future needs of the tobacco industry.
And to ensure that Zimbabwe remains a preferred source of flavor-style flue-cured tobacco leaf.
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