The Last Laugh
Zim farmers boost Zambian tobacco industry

16^th February 2004

Lusaka - Zambia's tobacco production has more than doubled in the last year, boosted by the arrival of farmers fleeing land reforms in Zimbabwe, an industry official said on Monday.

Tobacco Association of Zambia (TAZ) executive director John Downie said Zambia's tobacco production rose to 7,2 million kilograms in 2003 from three million in 2002, largely thanks to white Zimbabwean farmers who have resettled in Zambia following land redistribution in their homeland.

"A lot of the expansion is a result of the new farmers... the new techniques from the newcomers have been a wake-up call for our members to improve their farming techniques and increase production," Downie said.

'This is exciting as the industry is recording rapid growth' Downie said 75 former Zimbabwe tobacco farmers and their managers had settled in southern and central parts of the country following Zimbabwe President Robert Mugabe's controversial policy of seizing white-owned farms to give to landless blacks.

Downie said the TAZ was helping the newly-arrived farmers to settle quickly and get on with production.

"The shortfall in Zimbabwe tobacco production, which fell to below 100 million kilograms in 2003 from about 240 million kilograms before the land reforms, has worked to our benefit as our production has been rising faster," Downie told Reuters in an interview.

The bulk of Zambia's virginia and burley tobacco is bought by Altria Group Inc unit Philip Morris, British American Tobacco and Universal Leaf Tobacco Co.

Downie said the gross value of the 7,2 million kilograms of tobacco produced in 2003 was $12,5-million, adding that 2004 should see production rise to 15 million kilogram worth around $27 million. Only $5,2-million was earned from tobacco sales in 2000.

He said Zambia could earn well over $51-million in 2005 from tobacco sales as production kept increasing rapidly, although he did not give specific targets.

"This is exciting as the industry is recording rapid growth, in fact faster than we anticipated," Downie said.

Downie said some 75 former Zimbabwe tobacco farmers and their managers had settled in southern and central parts of the country following President Robert Mugabe's controversial policy of seizing white-owned farms in Zimbabwe to give to landless blacks.

Government officials said the white farmers had not been given new land in Zambia but had bought or hired existing farms. Zambia has 73 million hectares of productive land, of which only 10 percent is currently being used for farming.

Unlike Zimbabwe, Zambia has a liberal land policy which allows farmers to own land on either 14-year or 99-year renewable leasehold.

Downie said 17 000 new jobs had been created in the tobacco sector in the last three years, raising the total workforce to 25 000. He said land under tobacco cultivation has also increased to 6 000 hectares from 2 000 hectares in the last three years.

By Shapi Shacinda