Farmers shun auction,prefer contract market
Tobacco farmers’ dissatisfaction with tobacco marketing trends is pushing some of them from the auction to the contract system of selling tobacco.
The farmers’ assertions come on the back of Tobacco Commission (TC) figures indicating that the number of farmers under the auction system is on the decline.
TC data shows that over the past two years, tobacco grown under auction has declined with burley tobacco grown and sold under auction system declining by 34 percent between 2021 and 2022.
Similarly, flue-cured tobacco, northern division dark fire-cured tobacco and southern division dark fire-cured tobacco grown and sold under auction system have also decreased by 79 percent, 64 percent and 79 percent, respectively between 2021 and 2022.
The declining trends were also evident at the first day of tobacco marketing at Limbe Floors on Monday where only five bales out of 2 050 bales were sold under the auction system.
Frank Naphambo, a Phalombe–based seasoned tobacco farmer, said in an interview that the auction system is slowly losing its grip.
He said: “Farmers that have opted to sell their tobacco through a contract system because it has become the only sure way where one can sell their tobacco.
“High rejection rates on auction market frustrates farmers who now have shifted to contract.”
Another farmer, Luka Kwenje from Mangochi also shared similar sentiments.
“I have been selling my tobacco under the auction system until five year ago when I came to terms that preference for buyers is now on contract farming,” he said.
Tama Farmers Trust president Abiel Kalima Banda while admitting that preference for selling tobacco has lately shifted to contract, maintained that the auction system remains critical to the tobacco market.
He said: “Indeed only a few farmers have remained on the auction market, but this does not mean the market is dying.
“The fact is that market and economic conditions have pushed farmers to contract because they are assured of a readily available market and availability of inputs.”
Due to quality and traceability issues, buyers have preferred the contract system of selling tobacco to enable them deal with the two issues as they offer extension services to contracted growers.
