The Costs and Profitability of Tobacco Compared to Other Crops in Zimbabwe

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.

Bibliographic Details

Main Author:	Keyser, John C.
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2002-06
Subjects:	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 GROWERS, COMMERCIAL FARMERS, COMMODITY, CONSUMER PREFERENCES, CORN, COST ASSUMPTIONS, 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, FOOD SECURITY, FORESTRY, GDP, GRAIN, GREENHOUSES, HORTICULTURAL CROPS, HORTICULTURE, INCOMES, INTENSIVE FARMING, IRRIGATION, LABOR FORCE, LAND USE, LEMONS, LIVESTOCK, MARKETING, MUSHROOMS, NEW TECHNOLOGIES, NUTRITION, ORANGES, ORCHARDS, OVERHEAD COSTS, PRODUCE, PRODUCTION COSTS, PRODUCTION TECHNOLOGIES, REMITTANCES, SEEDS, SMALL FARMERS, SMALLHOLDERS, SOYBEAN, SPICE CROPS, SPICES, STATISTICAL DATA, TECHNOLOGY TRANSFER, TOBACCO, TOTAL COSTS, TRADE BALANCE, UNITED NATIONS, WHEAT PRICES, YIELDS,
Online Access:	http://documents.worldbank.org/curated/en/2002/06/2017574/costs-profitability-tobacco-compared-other-crops-zimbabwe http://hdl.handle.net/10986/13654
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