Tobacco Asia

tobaccoasia 53 LEAF NEWS 烟叶新闻 In a presentation of the group's performance for the six-month period ending June 30, 2022, BAT Zimbabwe chairman, Lovemore Manatsa, stated that the segment succeeded very well despite economic difficulties. The increase in exports coincides with government requests for businesses to use this opportunity to increase their internal foreign currency revenue generation. During this period, BAT's revenue grew by 71% to reach ZWD6.9 billion (US$184.3 million) as compared to the same period in 2021, attributed to price increases affected during the period. This led to an increase in gross profit of ZWD2.8 billion (US$74.8 million). Selling and marketing expenses rose by ZWD314.4 million (US$8.4 million), or 65%, compared to the same period in the previous year, as a result of greater marketing expenditures made to improve sales volumes and an overall rise in costs brought on by inflation. Administrative costs were ZWD214.6 million (US$5.74 million), or 42% more than they were during the same period the previous year. This increase was primarily the result of additional marketing expenditures made to increase sales volume, as well as a general rise in costs brought on by the rapid devaluation of the Zimbabwean dollar during the review period. Additionally, operating profit decreased by ZWD1.4 billion (US$37.4 million), falling to ZWD678.6 million (US$18.15 million), compared to a net profit of ZWD1.4 billion the same period last year, a 149% drop. Zambia's Sales Expected to Reach US$92m According to national consolidated data, Zambia forecast that its tobacco harvest will increase by 25% and yield US$92 million by the end of the marketing season, despite low rainfall, the Covid-19 pandemic, and other effects of climate change. Farmers Review Africa reported that at the close of business on August 12, approved sales floors stood at 35,000 kilos as opposed to the predicted 33 million kilograms (m.kg), with flue-cured virginia registering 27 m.kg and air-cured burley projected at 6 m.kg. According to Reuben Mtolo, minister of agriculture, the industry had done well during the season despite a number of challenges and low investment, which had an impact on the output of the vast majority of small-holder growers who rely primarily on rainfall. Addressing the International Tobacco Growers' Association (ITGA) Africa Congress, Mtolo said it was pleasing to see that the nation had outperformed expecta- tions thanks to better extension and farmer education pro- grams as well as a commitment to the sector. He reassured industry participants that the government was committed to provide favorable policies to entice invest- ment and new farming technology from farmers to unlock the sector's untapped potential. "I'm assuring you of favorable and stable policies and incentives environment," he said. "To this effect government is now in the process of enacting a new legal framework for the industry that will bring about effective regulation and foresee improved private stakeholders participation across the tobacco value chain." JTI Malawi Committed to Decent Work in Supply Chain As part of its commitment to the promotion of decent work in the tobacco supply chain, Japan Tobacco International (JTI) donated two vehicles and two motorcycles to Malawi's Ministry of Labor to help solve mobility issues ministry officials face carrying out their duties, especially in field offices. According to Limbani Kakhome, JTI Malawi's director of corporate affairs and communications, the company conducted a supply chain impact assessment in 2019 that identified tenancy as a key human rights risk in the supply chain. In order to address the risks, JTI instituted several measures, including distributing farm record books to all its contracted growers to enable them to track farm employees' working hours, payment of monthly minimum wage, and ensuring that all farm employ- ees have written contracts. The company also launched a workers' rights campaign in 2021 to raise awareness about workers' rights on all JTI contracted farms. Kakhome said, 'We have a history of responding to human rights risks – including child labor in our supply chain. Our flagship child labor program launched in 2011 called 'Achieving Reduction of Child Labor in Support of Education' – ARISE in short – was developed to help prevent and eliminate child labor in the tobacco-growing communities where JTI directly contracts growers." Kakhome said the donated vehicles will be used at the ARISE project, and that JTI would provide the running costs for the vehicles for one year. Accepting the donated vehicles, Vera Kamtukule, minister of labor, said, "The support that JTI Leaf Malawi has provided today is a sign of true partnership. This is the way to go if we are to address many challenges that confront us. Our memorandum of understanding is bearing the fruits. Through this MOU, we are assured of accelerating training of agronomy officers on labor standards and enhance labor inspections in the grower farms of JTI Leaf Malawi impact districts." Photo credit: Mitchell Maher / International Food Policy Institute JTI Malawi is committed to the promotion of decent work in the tobacco supply chain and works closely with the Ministry of Labor.

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