Zimbabwe tobacco output rebounds, up 100 percent

By Nelson Banya

HARARE (Reuters) - Zimbabwe produced 119 million kg of tobacco in the 2009/10 season, double the previous year's output, an official said on Friday, as the sector recovers from the damage to commercial farming associated with land seizures.

The southern African country's tobacco yield plunged from a peak of 236 million kg in 2000, before President Robert Mugabe embarked on a drive to take white-owned commercial farms to resettle landless blacks, to 48 million kg in 2007/08.

Zimbabwe's economy, devastated by hyperinflation which peaked at 500 billion percent in December 2008, has stabilised since last year when Mugabe was forced into sharing power with bitter rival Morgan Tsvangirai, now prime minister, after disputed elections.

Zimbabwe Tobacco Industry and Marketing Board (TIMB) chief executive officer Andrew Matibiri told Reuters total sales could rise to 120 million kg at the end of the tobacco-selling season on Friday.

"As of yesterday, 119.4 million kg of tobacco had gone through the auctions, compared to 58.6 million kg last year," Matibiri said.

"The sales have realised $347 million, at an average of $2.91 per kg."

Matibiri said output was projected to be higher next year.

"For the next season we have recorded seed sales enough for 105,000 hectares and from that planting area, if everything goes well, we can get anything up to 200 million kg," Matibiri said.