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

Keyser, John C.

World Bank, Washington, DC

关键词: TOBACCO INDUSTRY;    COST-BENEFIT ANALYSIS;    CROP YIELDS;    PROFITABILITY;    MAIZE;   

RP-ID  :  24909

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This study compares the financial costsand returns to tobacco growing with twelve (traditional andnon-traditional) alternative crops, looking atprofitability, costs, labor intensity, financial support,technical infrastructure, land-suitability, marketingdifficulties, world demand, and production risks. It aims toprovide an improved understanding of the trade-offs farmersface in deciding what crops to grow. The analysis is basedon an original set of 91 production budgets estimated inJanuary 2001 specifically for this study. The study findsthat tobacco is a highly profitable cash crop for both largeand small farmers. however even if global demand for tobaccowere to fall significantly in the future, the impact onemployment and the broader economy would depend on theextent to which commercial farmers were able to switch toother high value export crops. Changes in Zimbabwe'sland policy in 2001/2002 are likely to have a much largerimpact on tobacco growing and exports and on the economythan demand-induced changes in the global market for tobacco.