In 1936, through the Tobacco Marketing and Levy Act, the Tobacco Marketing Board was formed resulting in the selling of tobacco through the Auction Floors and, later, Contract floors (from 2004).
1994 saw the Board reconstituted to cater for the interests of all classes of different types of tobacco growers (Virginia, Burley, Oriental and Dark-Air Cured), buyers and other stakeholders. In the same year, indigenous buyers started participating for the first time in competition with traditional buyers.
The Tobacco Marketing and Levy (Amendment) Act of 1997 saw the Tobacco Marketing Board being renamed to the Tobacco Industry and Marketing Board. The amended Act also brought about a change in the collection of levies, which are now paid to the Ministry of Agriculture instead of recognized Growers’ and Buyers’ Associations.
From the 2004 selling season the growing and marketing system was changed with the introduction of contract growing and marketing of tobacco. Tobacco selling in Zimbabwe was done exclusively through auctions whereby tobacco producers took their crop to an auction floor of their choice for its marketing. Under this system, the grower is responsible for mobilizing the necessary cropping resources on his own. When ready for sale the tobacco was delivered to an auction where the highest bidding buyer secured the produce. The buyer took no risk in the production process. Contract growing and marketing departs from this arrangement, in that the buyer provides the inputs required for tobacco production, with the buyer guaranteeing to buy all the tobacco contracted at prices (per grade) equal to or higher than those prevailing on the auction floors.