Tobacco Asia

56 tobaccoasia LEAF NEWS 烟叶新闻 Kentucky Farmers Producing Cigar Wrapper Tobacco Due to the recent change in demand in the tobacco industry, a large number of tobacco growers in Daviess County, KY are now producing cigar wrapper tobacco, according to 14News. Due to the weather and high production expenses, the majority of farmers in the region no longer plant burley tobacco. The proprietor of Stephen's Farm and Garden in Daviess County's western region is Brad Stephen. Stephen claims that since he began his employment as a tobacco farmer at the age of 18, the sector has seen significant change. "The companies weren't willing to pay more. We were basi- cally raising tobacco for the same money that we [were] getting 12 years ago and that is no longer sustainable with production costs increases, labor going up every year," said Stephen. Farmers of cigar wrapper tobacco can earn between US$0.40 and US$8 per tobacco leaf. Stephen says cultivating cigar wrapper tobacco allows him to make greater use of their resources and labor. In Stephen's opinion, growing cigar wrapper tobacco rather than burley is more economically efficient and profitable since more tobacco could be produced on fewer acres. Payment Delays for Farmers Despite increased production, the lack of US dollars in Tanzania is having a negative impact on tobacco farmers, some of whom claim they have not yet received their payments. Stanley Mnozya, director general of the Tanzania Tobacco Board (TTB), acknowledged that the shortage of dollars was to blame for the delay. He also noted that higher-than-anticipated production, which surpassed market demand, exacerbated payment difficulties. According to TTB's most recent report, which was released on July 3, a total of 103,766,020 kilograms of virginia flue- cured tobacco (VFC) were purchased from farmers for a total of US$240,803,007.78, or an average price of US$2.32 per kg. In addition, farmers were paid US$143,894.60 for a total of 83,590 kg of dark fire-cured tobacco (DFC), representing an average of US$1.72 per kg. Hussein Bashe, the minister of agriculture, called a conference of farmers, tobacco buyers, and banks as the crisis grew worse and gave assurances that payments would be completed by the end of July. Mr. Bashe added that US dollars would be used to make the payments. Alliance One Tobacco Tanzania Limited (AOTTL), stated in a statement that it managed to pay more than 12,000 contracted tobacco growers in the country to a total of US$71.9 million (TZS179.8 billion) this season. Ephraim Mapoore, managing director of AOTTL, was quoted in the statement as saying the company also paid a total of US$1.72 million (TZS4.3 billion) in crop cess directly to the various districts where it operates. "While the governing laws require all tobacco buyers to pay for purchased tobacco within 14 days, the company strives to lessen the payment period in order to cushion its contracted growers from the burden of interest payments associated with the loans acquired from commercial banks," Mapoore said in part of the statement. "We are proud to report that this year the company provided payments to our contracted farmers in just four days." However, the dollar shortage has largely impacted the disbursement of payments to farmers by other buyers. Tobacco Farmers Call on South Africans for Support Tobacco farmers in South Africa are worried that the proposed Tobacco Products and Electronic Delivery Systems Control Bill will wipe out the entire industry and are calling on South Africans to rally behind the industry. There are currently only 10 black tobacco farmers left in the country, from the almost 300 just a few years back. Those who switched to farming soybeans, sugar beans, cabbages, and other crops were forced to by the country's illicit industry, 'destructive' legislation, and a worldwide campaign to clamp down on smoking which left them no other choice, said Tobela Tapula, c.e.o. of South Africa Tobacco Transformation Alliance (SATTA). With no markets to buy their tobacco leaves, farmers in North West, the Eastern Cape, Mpumalanga, KwaZulu-Natal, and Limpopo had to clear out their tobacco fields. The remaining 10 tobacco farmers are only able to do so because they have an immediate market in the Limpopo tobacco processor. According to Tapula, if the proposed new bill is passed, demand for tobacco leaves will drop and farmers, especially black growers, will lose the economic benefits of the industry. For many households and communities in South Africa, the value chain is a significant source of income. Nearly 7,000 farmers, 400 to 600 workers in the processing industry, and 3,354 workers in the manufacturing sector all have steady employment thanks to tobacco leaf farms. Andhra Pradesh's 2023-24 Crop Size Set The Tobacco Board decided to set the crop size for Andhra Pradesh for the agricultural year 2023-24 at 142 million kg. Farmers are turning to growing cigar wrapper tobacco as it is a more profitable crop. Photo credit: Agronomi 101, Creative Commons 3.0

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