Malawi’s Tobacco Marketing Season closed yesterday, with Limbe Floors in Blantyre emerging as the top performer in terms of prices offered, Tobacco Commission (TC) data show.
In its market analysis, TC indicated that this is despite Limbe being the smallest of the four markets, handling about 9.3 percent of the total output. The other markets are Lilongwe, Mzuzu and Chinkhoma in Kasungu.
The Limbe Floors’ highest average price was recorded at $2.15 (about K3 764) per kilogramme (kg), which was above the national average price of $1.98 (about K3 466) per kg.
The data come against the backdrop of 143.7 million kg of tobacco sold after 20 weeks of sales, raking in $284.9 million (about K498.8 million).
TC data further indicate that flue- cured virginia tobacco pushed up the prices at Limbe Floors compared to other tobacco types such as burley and dark fired.
Reads part of the TC analysis: “The dominance of flue-cured virginia in Limbe accounted for the highest average price. The high-value tobacco type fetched a national average price of $2.64 [about K4 622] per kg.
“By contrast, the prices at Lilongwe Floors, which accounts for 40.3 percent of national tobacco volume, averaged $1.97 (K3 449) per kg, below the national average. Lilongwe is dominated by burley tobacco.”
In terms of volumes, Lilongwe Floors led the pack at 57.4 milling kg, representing 40.3 percent followed by Mzuzu at 39.2 million kg or 27.6 percent, Chinkhoma at 32.3 million kg or 22.7 percent and Limbe at 13.2 milling kg or 9.3 percent.
Unlike in the previous seasons when markets closed in phases, this season they closed on September 10.
In an interview on Wednesday, TC spokesperson Telephorus Chigwenembe said the regulator’s assessment shows that most of the 154.9 million kg projected tobacco output has been sold.
“The closure follows an industry assessment of the flow of tobacco to the markets, which revealed most of this year’s crop has now been sold,” he said.
Tama Farmers Trust president Abiel Kalima Banda, in a separate interview, said the positive aspect of this year’s season is that almost all leaf has been bought.
“However, overall, this season was not good because prices have been extremely low,” he said.
During the corresponding period last year, 205.3 million kg of tobacco was sold, bringing in $517 million (about K905.2 billion) at an average price of $2.52 (about K4 412) per kg, indicating that revenue is 43 percent below last year.
This season’s output of 154.9 million kg was below the buyers’ demand at 170 million kg.
Last season, Malawi sold 221 million kg of tobacco, which generated a record $542 million (K949 billion) at an average price of $2.46 (K4 307) per kg.
Tobacco remains Malawi’s main foreign exchange earner, contributing about 50 percent to foreign exchange earnings and 15 percent to the national economy, with the industry supporting millions of people along its value chain.
