Tobacco output set tojump 17%, shows survey
Tobacco output is expected to increase by 17 percent this season compared to what farmers produced in 2023, the Second Round Tobacco Estimates Survey has shown.
This means that tobacco growers will likely produce 140 million kilogrammes (kg) of the country’s main foreign exchange earner, which contributes about 60 percent to forex earnings.
However, the output represents a four percentage points reduction from an earlier projection of 21 percent increase or 146 million kg as suggested during the First Round Tobacco Estimates Survey.
Tobacco Commission partly attributed the lower-than-earlier projected output to the dry spell that hit most of tobacco producing areas, although the 140 million kg is still higher than the 120 million kg that was sold during last year’s marketing season.
Said the commission’s public relations officer Telephorous Chigwenembe: “The latest report attributes the decrease to prolonged dry spells in most parts of the country and poor establishment and performance of some dark fire cured tobacco in the Northern Region.”
The First Round Tobacco Estimates Survey attributed the improved production to increased hectarage due to “good prices” offered in 2023, increased number of growers, increased sponsorship and availability of inputs.
Said Chigwenembe: “The commission expects another successful tobacco marketing season because of high levels of interest from companies that would like to buy the leaf this year.
“We, therefore, expect good competition that will translate into competitive prices for the leaf.”
JTI Leaf Malawi corporate affairs and communications director Limbani Kakhome said there are high prospects of a good marketing season.
He said: “At the beginning of the season, production was impacted negatively depending on localised weather patterns.
“However, with the resurgence of the rains in March, much of the crop has recovered and production should be relatively good.”
Kakhome anticipates a good and fast selling season which should be anchored by improved efficiencies.
“This will also assist to reduce illegal exports of tobacco across the borders and buying of tobacco by illegal intermediate buyers locally,” he said.
Kakhome said demand for the country’s tobacco should be responsive to global trade requirements that are translated into grower contracts.
“Contracting is a proven sure way of managing production levels to optimal levels,” he said.
On the policy front, Kakhome says the Tobacco Industry Act of 2023 needs to be supported with regulations anchored on better regulation policies that foster efficiency, transparency, competitiveness, social and environmental stewardship to solidify Malawi as a main supplier of burley tobacco globally.
Tobacco exports increased in 2023 to $389 million (about K681 billion) after from $181.7 million (about K316 billion) in 2022, according to the Malawi Government Annual Economic Report 2024.
