Tobacco Asia

58 tobaccoasia LEAF NEWS 烟叶新闻 Zimbabwe Expands Tobacco Into New Regions Zimbabwe is accelerating efforts to extend tobacco cultivation beyond its traditional northern and eastern strongholds, with rising output in Matabeleland highlighting early gains this season. Government-backed initiatives, alongside the commis- sioning of a US$100 million tobacco processing plant in Harare last year by president Emmerson Mnangagwa, have driven expansion into non-traditional areas. Production now spreads across Matabeleland South, Matabeleland North, Midlands, Gokwe North and Gokwe South, with strong uptake reported in Marula and Mangwe District. Harvesting is already underway in Matabeleland, where 325 growers—both new entrants and established farmers—are delivering leaf to auction and contract floors. The Tobacco Industry and Marketing Board (TIMB) said farmers planted 370 hectares of naturally cured virginia (NCV) tobacco across Matabeleland North and South, signaling a shift in regions historically focused on cattle and small grains. Zimbabwe produced 354.9 million kilograms of tobacco worth US$1.2 billion last year, retaining its position as Africa's top producer and the world's second-largest exporter of flue-cured virginia tobacco after Brazil. Authorities are also stepping up investment in processing and value addition, with plans to expand domestic capacity and boost exports of finished products. Mnangagwa said the sector supports more than 160,000 households and urged continued investment in value addition, sustainable practices and climate-smart farming. Export performance has strengthened. TIMB reported first-quarter earnings of US$489 million from 71 m.kg. of semi-processed tobacco, up from 43.2 m.kg. worth US$293 million a year earlier. The Far East remains the largest market, with China, Japan, and Indonesia importing 44.5 m.kg. valued at US$378 million. In Matabeleland, most growers operate under contract farming, selling through a licensed contract floor in Mangwe. NCV tobacco is gaining traction due to its curing method, which uses sunshades and drying racks instead of firewood or coal. Farmer participation has surged. In Marula, only 17 communal farmers adopted tobacco during the 2023/24 season; that number has now climbed to more than 320, according to TIMB. Luzon Tobacco Glut Prompts Action The Philippine's National Tobacco Administration (NTA) is moving to stabilize the market after a surplus of flue-cured virginia tobacco occurred in northern Luzon. The agency said local government units encouraged expanded planting in recent seasons, but the lack of guaranteed buyers led to oversupply. Flue-cured virginia tobacco remains a key cash crop across Ilocos Norte, Ilocos Sur, La Union, and Abra, where thou- sands of farmers have relied on it since the 1950s. Only about 10,000 of the country's 45,000 registered tobacco farmers currently participate in the NTA's Tobacco Contract Growing System, which provides a more secure and predictable market for their harvests. To address the imbalance, the NTA has begun consulta- tions with industry stakeholders and secured a commitment from one manufacturer to increase its purchases of locally grown leaf this year. The agency plans further meetings with farmers, trading center operators, and local governments in the coming weeks to find additional solutions. At the same time, the NTA is responding to reports of grading issues in parts of the Ilocos region. Tobacco grading involves sorting cured leaves based on quality factors such as color, texture, leaf position, and damage, helping standardize products for manufacturing and determine value. NTA administrator Belinda Sanchez said the agency has facilitated discussions between growers and buyers to resolve disputes over grading and pricing. In Balaoan, La Union, one such dialogue led a trading center to agree to accept previously rejected virginia tobacco, provided the leaves are properly classified, according to branch manager Giovanni Palabay. Trading centers operated by Universal Leaf Philippines Inc., Trans Manila Inc., and Continental Leaf remain open to receive tobacco across the Ilocos provinces. Accredited field canvassers also continue to assist farmers during the trading season. NTA urged farmers to coordinate with extension workers or contact branch offices if issues arise. Tobacco trading typically runs from late March through June or August. Tanzania Moves to Cut Tobacco Costs The Tanzanian government launched a review of tobacco production costs as part of efforts to improve efficiency and boost productivity in the sector. Deputy minister for agriculture David Silinde said the assessment will examine key factors driving costs for farmers, including interest rates and banking charges linked to agricul- tural loans. The review, announced in Parliament in Dodoma, aims to provide a clearer understanding of the financial pressures facing tobacco growers. The initiative follows concerns raised by Emmanuel Peter Cherehani, member of parliament for Ushetu Constitu- ency, who pointed to bank deductions and loan-related expens- es as major challenges affecting farmers' profitability. Authorities plan to work with financial institutions, particularly banks that provide agricultural financing, to assess the cost structure across the sector. Officials said the findings could help identify areas where adjustments may reduce financial burdens and support more sustainable production. Tobacco remains a key agricultural commodity in Tanzania, which ranks as Africa's second-largest producer. The crop supports thousands of smallholder farmers and contrib- utes significantly to export earnings and rural livelihoods. Alongside the cost review, the government is pursuing broader measures aimed at increasing output and improving productivity while lowering production expenses. These efforts focus on strengthening the entire value chain and enhancing income potential for growers. Analysts note that financing costs remain a key challenge. Interest rates on agricultural loans typically range between 15% and 20%, adding to the overall cost burden before cultivation begins.

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