Tobacco Asia

60 tobaccoasia LEAF NEWS 烟叶新闻 Ron Radloff, new USTC c.e.o. and president. Credit: USTC. Dune raised concerns about side marketing and delayed payments from some contractors but noted that industry stakeholders are taking corrective steps to stabilize the sector. Tobacco produc- tion continues to grow, fueled by favorable pricing and structured marketing. What was once a crop grown by a limited group of farmers now involves more than 140,000 producers, many from communal and A1 resettle- ment areas. The spread of tobacco cultivation into regions like Matabele- land South—which previously had little tobacco activity—signals a shift from the traditional strongholds of Manica- land, Midlands, and Mashonaland. This expansion is creating new income and employment opportunities for rural communities. TIMB, along with government and industry partners, continues working to boost farmer profitability, enforce regulatory compli- ance, and promote sustainable practices and fair labor standards. Ongoing training initiatives aim to equip farmers with the skills they need to improve leaf quality and boost yields through better cultiva- tion, curing, and handling techniques. New US Tobacco Cooperative C.E.O. The board of directors of US Tobacco Cooperative Inc. (USTC) appointed Ron Radloff as c.e.o. and president, effective April 16, 2025. Radloff joined USTC in July 2016 as the director of finance at USTC's manufacturing operations, US Flue Cured Tobacco Growers, Inc. (USFC), in Timberlake, NC, and has held a variety of positions at USFC, including director of manufacturing and operations and, most recently, senior vice president of operations. Before joining USTC, Radloff served as a controller for Mohawk Industries. Prior to that, he was the assistant controller of Daltile, and held engineering and finance positions with Norfolk Southern and IBM. "Ron brings fresh experience and leadership to guide us forward. At US Tobacco Cooperative, we take great pride in our longstanding commitment to excellence. Ron is poised to uphold and build upon that standard," said Danny Watkins, USTC chairman. "It's a privilege to step into this leadership role," said Radloff. "I look forward to working with the team to drive USTC and its subsidiaries toward our vision of becoming a global leader in leaf and consumer tobacco products." Radloff brings a proven track record of leadership, operational expertise, and a passion for the tobacco industry—quali- ties that make him well-suited to lead USTC. He will oversee the organization's daily operations and drive the develop- ment and execution of annual, long-term, and strategic plans. Radloff will report directly to the USTC board of directors. Philippine Farmers Urge Passage of Bill to Combat Illicit Trade Tobacco farmers' groups are rallying behind House Bill 11360, which seeks to implement structured tax increases on tobacco products and introduce tougher enforcement against the illicit cigarette and vape trade in the Philippines. The Philippine Tobacco Growers Associa- tion (PTGA) warned that the growing black market threatens the livelihood of nearly 40,000 tobacco farmers. They linked the surge in illegal trade to repeated hikes in excise taxes, which have undercut local growers. "Despite our commitment to producing quality crops and goods, we find ourselves struggling under the burden of escalating taxes imposed by the government," PTGA said. The association stressed that illegal cigarettes often use imported leaf, reducing demand for domestically grown tobacco. Although 80% of their sales goes to export markets, PTGA said even interna- tional sales have suffered due to the spread of illicit products in the local market. "Our earnings would be better if only legitimate and local cigarettes were sold in the market," PTGA said, adding that domestic sales no longer provide dependable income. "The advantage of smuggled cigarettes compared to our local brands needs to be reduced," the group said. HB 11360, which the House of Representa- tives approved this February, proposes the formation of an Inter-Agency Tobacco Illicit Trade Council under the Department of Finance. The council would oversee enforcement, curb smuggling, and implement a schedule of tax increases. The bill also calls for a single tax rate on both nicotine salt and freebase vapor products. At the 2nd International Tobacco Agricultural Summit in January 2025, the Federation of Free Farmers (FFF) urged the government to involve farmers in key policymaking bodies, particularly those addressing smuggling. FFF board chairman and former agriculture secretary, Leonardo Montemayor, said, "It is vitally important for real solution- seekers to consider these matters from a 'worm's-eye view.' " Montemayor also called for farmer representation in the Anti-Agricultural Economic Sabotage Council. National Tobacco Administration (NTA) chief Belinda Sanchez outlined the broader risks posed by the illegal tobacco trade, noting that the government loses critical revenue while national security suffers. "The continuing proliferation of illegal tobacco sales in the local market is causing a decline in government revenue. This reduction in funds limits the resources available for essential public services, particularly universal health care," Sanchez said. "Moreover, proceeds from illegal tobacco sales are often linked to organized crimes, further threatening national security," she added. Sanchez emphasized that over 2.2 million Filipinos rely on the tobacco sector, including more than 430,000 farmers, farmworkers, and their families. She called for a unified, nationwide approach to address the issue. "There is an urgent need for a multi-faceted approach against illicit trade that includes strengthening national policies, enhancing regional cooperation, improving enforcement mechanisms, and increasing public awareness," she said.

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