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REVIEW OF THE 2013 SEASON

REVIEW OF THE 2013 SEASON. FRED KAMVAZINA TCC. PRESENTATION LAYOUT. Opening dates Market Highlights Crop estimates versus actuals Successes Challenges Way forward. Opening & closing dates. Market Highlights.

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REVIEW OF THE 2013 SEASON

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  1. REVIEW OF THE 2013 SEASON FRED KAMVAZINA TCC

  2. PRESENTATION LAYOUT • Opening dates • Market Highlights • Crop estimates versus actuals • Successes • Challenges • Way forward

  3. Opening & closing dates

  4. Market Highlights • Positive developments in Volumes sold and Value realised but unfavourable in prices compared to 2012 • Increased volume in all tobacco types by 111% • Increased Value by 103% • Reduced average price by 4% • Minimal market disruptions and rejections • Major difference in quality between IPS crop and auction • Reduced NTRM cases but nesting remains a challenge

  5. Market Developments: Sales volume (KG)

  6. Foreign Exchange Generation (US$)

  7. Average Prices (US$/Kg) By Crop Type

  8. 2013 Burley AVG Prices (US$/Kg) per Floor

  9. 2013 Flue Average Prices (US$/Kg)

  10. Crop Estimates Vs Actuals • Within the acceptance range: 4% lower than actual for all tobacco types • Bigger underestimation on NDDF (9%) • Improved over 2012 estimate results where actual outturn was 47% lower than estimates

  11. Crop estimates Versus Actuals: 2013 & 2012

  12. 2013 Minimum Prices versus Actual • Burley & Flue Cured registered competitive prices above Govt set minimum • Dark fired sold below minimum • NDDF & SDF sold at 3% lower than minimum

  13. 2013 Minimum Prices versus Actuals

  14. Auction Compared to Contract System • Govt set 80-20% share in favour of Contract for burley • Outturn shows 69% Contract and 31% Auction • Contract prices were higher by 21% over minimum against 15% higher for auction • Average Contract prices were above average auction prices by 5% for burley

  15. Successes • More volumes within shorter period: • 139 million Kg in 2013 against 79 million Kg over the same period of 17 weeks • Improved inflow of tobacco • Met the demand for Flue • Smooth selling • very minimal market disruptions • Very low rejection rates • Capacity utilisation of selling floors • NTRM has improved tremendously

  16. Challenges • Delays in payments for contract growers after fully servicing loans • Attainment of the IPS share in offloading • Mix up of contracted growers among merchants (some not even contracted) • Local varieties (certified & recycled) fetching more than supplied varieties • Extended trading hours • Misunderstanding on interpretation of new grades especially NDDF • Nesting still remains a big challenge • Buyers preference for sponsored over contract marketing crop • Delays in clearing purchased tobacco by merchants

  17. Way Forward • Train buyers on NDDF grades interpretation • Review payment system for contract farmers • Credible data and verification on contracted farmers to respective merchants • Review seed package for IPS • Review sale plan • Continue intensifying NTRM messages

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