TIMB sets stage for 2026 marketing season amid record output, global market pressures

The Tobacco Industry and Marketing Board (TIMB) says Zimbabwe’s tobacco sector is entering the 2026 marketing season on a strong but strategically cautious footing, with record production expected, structural reforms underway and renewed focus on quality in the face of global oversupply.

Speaking at a pre-season media interface in Harare, TIMB Chief Executive Officer Emmanuel Matsvaire outlined the state of preparedness ahead of the official opening of the 2026 marketing season on Wednesday, March 4.

Auction floors will open on Wednesday, with contract sales commencing the following day. On the same occasion, the Minister of Lands, Agriculture, Fisheries, Water and Rural Development, Hon Dr Anxious Masuka, is expected to launch the second phase of the Tobacco Value Chain Transformation Plan (TVCTP 2) covering the period 2026–2030.

From stabilisation to expansion

The first Tobacco Value Chain Transformation Plan (2021–2025) was designed to stabilise, reform and reposition the sector under the national economic blueprint. According to Matsvaire, it delivered “commendable results under challenging global and climatic conditions.”

Production surpassed the 300 million kg target, reaching 355 million kg in 2025. Localisation of tobacco funding reached 67 percent against a 70 percent target, while 135,284 households are now supported by tobacco, up 37 percent from 2017 levels.

Farmer earnings reached a historic USD 1.2 billion in 2025 — the first time the sector has crossed the billion-dollar mark. Average earnings per grower rose to USD 9,986, representing a 77 percent increase from 2017.

However, performance in value addition and beneficiation reached 10.78 percent against a 30 percent target, while alternative crops contributed 16.5 percent to farmer incomes, below the 25 percent target.

With TVCTP 2 set to be launched, the industry now shifts from stabilisation to expansion, targeting 500 million kg by 2030.

Record crop, tighter market

Zimbabwe is projected to produce approximately 400 million kg this season, up from 355 million kg last year.

But Matsvaire cautioned that this production growth comes at a time of global oversupply. Major producers including Brazil and India have increased volumes, while several countries are carrying significant stock from previous seasons.

“High volumes naturally introduce market pressures, which negatively affect pricing,” he said.

Five southern African countries alone have increased output by an estimated 160 million kg. Brazil, Zimbabwe’s major competitor, has also raised production, intensifying competition in key export markets.

The CEO noted that while Zimbabwe remains competitive in markets such as China, there are disparities within the African continent where Brazil is reportedly achieving higher prices.

“In periods of oversupply, quality becomes the strongest differentiator,” Matsvaire emphasised.

TIMB has engaged contractors on pricing frameworks and revised the grade price matrix to ensure a more favourable weighted average for growers. Arbitrators will be stationed at all selling points to protect farmers from undervaluation.

Growers have been urged to focus on correct variety selection, good agronomic practices, proper curing and accurate grading to secure premium prices.

Structural changes for 2026

For the 2026 season, 48 contractors have been licensed, 47 for flue-cured tobacco and one for shisha tobacco, alongside 46 Class A buyers.

Three auction floors will operate: Tobacco Sales Floor, Premier Tobacco Auction Floors and the new entrant, Ethical Sales Floor. Five decentralised selling points will also operate across provinces to reduce travel distances and align with Government’s devolution agenda.

One of the most significant structural reforms this season is the reduction of official tobacco classification grades from 1,320 to 669.

Zimbabwe’s grading system, originally adopted from the United States in the 1940s, had become overly complex and administratively burdensome. Following extensive consultation with industry technical committees, the grades were streamlined to improve efficiency and better align pricing with market realities.

“This is for the profitability of the farmer and the functionality of the market,” Matsvaire said.

Processing bottlenecks and electricity constraints

While production continues to climb, processing capacity is emerging as a critical constraint.

Zimbabwe’s current processing capacity stands at approximately 360 million kg of green leaf — including a 60 million kg facility that is currently non-functional. With production moving toward 500 million kg by 2030, significant expansion or improved utilisation will be required.

Current factory capacity utilisation is around 25 percent, presenting what Matsvaire described as a “low-hanging fruit” opportunity to increase throughput.

Electricity shortages remain a major impediment. One major processor reportedly lost approximately nine million kg of processing time last year due to power disruptions. However, solar investments are beginning to mitigate the problem, with at least one processor commissioning a new solar plant to stabilise operations.

Value addition and nicotine extraction

Efforts to deepen value addition are also gaining traction. A nicotine extraction plant in Harare, completed several years ago, is now fully operational and expected to be officially commissioned this year. The USD 10 million facility is part of broader beneficiation efforts aimed at retaining more value within Zimbabwe.

Combatting illicit trade

TIMB also raised concerns over illicit trade between Zimbabwe and South Africa. Authorities are working toward a memorandum of understanding between Zimbabwe Revenue Authority and the South African Revenue Service to strengthen cooperation and data sharing.

“We cannot celebrate factory closures elsewhere if they are linked to smuggling from our side,” Matsvaire said, emphasising the need to protect legitimate trade channels.

Sustainable tobacco in Matabeleland

Significant progress is being recorded in Matabeleland North and South, where Naturally Cured Virginia tobacco which requires no firewood or coal for curing, is expanding rapidly.

This season, 325 growers are cultivating approximately 370 hectares of the crop, up from 122 growers on 84 hectares last year, representing a 166 percent increase in growers and a 340 percent increase in hectarage.

Production of Naturally Cured Virginia is expected to reach around 500,000 kg this season. The initiative is being supported through irrigation-based village business units with boreholes and centralised seedbed production to climate-proof operations in the region.

Digital transformation and biometric enforcement

As part of efforts to curb side marketing and industry malpractices, TIMB has rolled out a biometric grower management system.

To date, 147,162 growers have been enrolled. Beginning this season, biometric registration will be mandatory for all growers wishing to sell tobacco. The booking system will automatically verify enrolment before allowing sales.

The system is also being expanded to confirm indebtedness and contracting arrangements in future seasons.

However, worn fingerprints among farmers have posed enrolment challenges. To address this, TIMB is introducing a facial recognition module before the end of the selling season.

Protecting Zimbabwe’s “golden leaf”

Matsvaire also reiterated warnings against the use of unauthorised seed varieties, stressing that Kutsaga remains Zimbabwe’s only licensed tobacco seed producer. Illegal seed imports undermine traceability, intellectual property and market confidence.

“Every illegal plant in the field represents a reputational risk to our golden leaf,” he said.

Outlook

Despite global market pressures, processing constraints and sustainability challenges, TIMB remains optimistic about the sector’s trajectory.

“We believe we are at the beginning of a new journey,” Matsvaire said. “Quality will continue to pay.”

With record volumes expected, strengthened regulatory systems, sustainability initiatives expanding and digital enforcement tightening, the 2026 marketing season may well mark the transition from rapid growth to a more quality-driven and structurally consolidated tobacco industry.