Timb unveils new tobacco pricing model 2025
According to recent reports, the Tobacco Industry and Marketing Board (TIMB) in Zimbabwe is implementing a new tobacco pricing model where the minimum price for contract sales is determined by the average price of all tobacco sold at auction and through contracts across all grades on the previous day, aiming to establish a more representative price for farmers; essentially, the highest bid at auction sets the benchmark for contract prices based on a grade-price matrix.
Key points about the new TIMB tobacco pricing model:
Key points about the new TIMB tobacco pricing model:
Auction-based minimum price:
The minimum price for contract sales is derived from the average price achieved at the auction floor on the previous day, taking into account all tobacco grades sold.
Grade-price matrix:
A system of price ranges for different tobacco grades is used to determine the minimum price for each grade on the contract market.
Fairer pricing for farmers:
The goal of this new model is to ensure tobacco farmers receive a more equitable price based on the overall market performance
