Zimbabwe Tobacco Sales Surge in Volume, Prices Dip – Day 34 Update

Zimbabwe’s 2026 tobacco marketing season is recording a notable increase in volumes, although prices continue to lag behind last year’s levels, reflecting shifting market dynamics.

As of Day 34 of the selling season, a total of 149.92 million kilograms of tobacco has been sold across both auction and contract floors.

This marks a significant rise compared to the same period in 2025, when 93.99 million kilograms had been sold.

Strong Growth in Volumes

Auction floors have contributed 8.81 million kilograms, with an average price of US$2.06 per kilogram. Meanwhile, contract sales dominate the market, accounting for 141.12 million kilograms at a higher average price of US$2.69 per kilogram.

Combined, the national average price currently stands at US$2.65 per kilogram.
The figures reflect a year-on-year volume increase of over 59%, highlighting strong farmer participation and improved output this season.

Prices Under Pressure

Despite the impressive growth in volumes, prices have declined significantly. During the same period in 2025, tobacco was selling at an average of US$3.42 per kilogram, meaning prices have dropped by approximately 22.5% this year.

This downward trend suggests several possible factors at play, including:

Increased supply, which may be putting pressure on buyers and reducing competitive pricing

Variations in quality, with a larger proportion of lower-grade leaf entering the market

Weaker global demand conditions, affecting export-driven pricing structures

Outlook for the Season

While lower prices may affect farmer earnings, the higher volumes could help cushion overall revenue losses, especially for large-scale producers.

However, for smallholder farmers, profitability may remain a concern if input costs are not matched by returns.

Market watchers will be closely monitoring upcoming sales trends to determine whether prices stabilise or continue to soften as the season progresses.

Overall, Zimbabwe’s tobacco sector remains resilient in output, but the price dynamics signal the need for strategic adjustments to maintain value in the global market.