The Costs and Profitability of Tobacco Compared to Other Crops in Zimbabwe
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World Bank, Washington, DC
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This study compares the financial costs
and returns to tobacco growing with twelve (traditional and
non-traditional) alternative crops, looking at
profitability, costs, labor intensity, financial support,
technical infrastructure, land-suitability, marketing
difficulties, world demand, and production risks. It aims to
provide an improved understanding of the trade-offs farmers
face in deciding what crops to grow. The analysis is based
on an original set of 91 production budgets estimated in
January 2001 specifically for this study. The study finds
that tobacco is a highly profitable cash crop for both large
and small farmers. however even if global demand for tobacco
were to fall significantly in the future, the impact on
employment and the broader economy would depend on the
extent to which commercial farmers were able to switch to
other high value export crops. Changes in Zimbabwe's
land policy in 2001/2002 are likely to have a much larger
impact on tobacco growing and exports and on the economy
than demand-induced changes in the global market for tobacco.
Palabras clave
TOBACCO INDUSTRY, COST-BENEFIT ANALYSIS, CROP YIELDS, PROFITABILITY, MAIZE, COTTON, GROUNDNUTS, SOYBEANS, WHEAT, COFFEE, NONTRADITIONAL EXPORTS, FIELD CROPS, HORTICULTURAL PRODUCTS MARKETING, VEGETABLES, AGRICULTURAL STATISTICS, AGRICULTURAL INVESTMENTS ACTUAL YIELDS, AGRIBUSINESS, AGRICULTURAL CROPS, AGRICULTURAL EXTENSION, AGRICULTURAL GROWTH, AGRICULTURAL OUTPUT, AGRICULTURAL PRODUCTION, AGRICULTURE, ALTERNATIVE CROPS, ARABLE LAND, BALING, BARRIERS TO ENTRY, CARROTS, CASH CROPS, CLIMATIC CONDITIONS, COFFEE, COFFEE GROWERS, COMMERCIAL FARMERS, COMMODITY, CONSUMER PREFERENCES, CORN, COST ASSUMPTIONS, COTTON, COTTON, COTTON CROP, CROP, CROP DIVERSIFICATION, CROP PROFITABILITY, CROP ROTATION, CROPS, CULTIVATION, DECISION MAKING, ECONOMIC CONSTRAINTS, ECONOMIC SECTORS, ECONOMICS, EQUIPMENT, EXPORT CROPS, EXPORTS, FARM, FARM ACTIVITIES, FARM ENTERPRISE, FARM HOUSEHOLDS, FARM INCOME, FARM MANAGEMENT, FARMER, FARMER PARTICIPATION, FARMERS, FARMING, FARMS, FIELD CROPS, FOOD SECURITY, FORESTRY, GDP, GRAIN, GREENHOUSES, GROUNDNUTS, HORTICULTURAL CROPS, HORTICULTURE, INCOMES, INTENSIVE FARMING, IRRIGATION, LABOR FORCE, LAND USE, LEMONS, LIVESTOCK, MAIZE, MARKETING, MUSHROOMS, NEW TECHNOLOGIES, NUTRITION, ORANGES, ORCHARDS, OVERHEAD COSTS, PRODUCE, PRODUCTION COSTS, PRODUCTION TECHNOLOGIES, REMITTANCES, SEEDS, SMALL FARMERS, SMALLHOLDERS, SOYBEAN, SOYBEANS, SPICE CROPS, SPICES, STATISTICAL DATA, TECHNOLOGY TRANSFER, TOBACCO, TOTAL COSTS, TRADE BALANCE, UNITED NATIONS, VEGETABLES, WHEAT, WHEAT PRICES, YIELDS