Tobacco Asia

60 tobaccoasia LEAF NEWS 烟叶新闻 Mozambique Tobacco Export Boom Mozambique's tobacco export earnings increased in 2025, even as production declined, underscoring the crop's continued role as a key foreign exchange earner. Data from the Bank of Mozambique shows export revenues reached US$258.3 million, up 16% from US$217.2 million in 2024 and US$154.2 million in 2023. The growth in export value came despite a drop in output. Tobacco production is projected at 72,380 tons in 2025, down from 92,343 tons the previous year, according to the same report. The figures highlight a divergence between volumes and earnings, with export revenues rising even as total production falls. Industry data suggests Mozambique continues to benefit from its position as a major tobacco producer, with the crop remaining one of the country's principal cash commodities. Tobacco cultivation covered about 71,000 hectares in 2025, reflecting its importance within the agricultural sector. The crop contributes significantly to export income and supports a large number of farmers across growing regions. Export performance over the past three years shows a steady upward trend in value, with 2025 marking the highest level in that period. The increase builds on gains recorded in 2024 and continues the recovery from earlier lower export values. Despite the decline in output, the sector maintained momentum in international markets, allowing export earnings to expand. The data points to continued demand for Mozambican tobacco, even as production volumes fluctuate year to year. Tobacco Grading Under Spotlight Zimbabwean tobacco farmers are urged to improve grading practices as leaf quality plays a key role in determining prices at the start of the marketing season. Industry stakeholders say buyers continue to base prices largely on how well tobacco is graded, with higher-quality leaf attracting stronger offers on both auction and contract floors. Proper classification, presentation, and consistency remain critical factors influencing returns. Early sales data shows mixed price performance. During the opening days of the 2026 marketing season, 1.8 m.kg. of tobacco worth US$2.3 million were sold, compared with 2.5 m.kg. valued at US$3.5 million over the same period last year. Average prices at auction floors reached about US$1.59 per kilogram, while contract floors averaged US$2.79 per kilogram. Officials and industry representatives stress that grading begins well before the crop reaches the market. Poor grading practices, including mixing different leaf qualities or inconsis- tent presentation, can lead to lower prices or rejection at the point of sale. By contrast, well-prepared and properly sorted tobacco tends to secure better offers from buyers. The Tobacco Industry and Marketing Board (TIMB) has also adjusted the grading framework ahead of the current season, reducing the number of official grades to streamline classifica- tion and align with market expectations. The move aims to simplify transactions and improve transparency while encourag- ing growers to adapt their grading and curing practices. Authorities say quality remains the main differentiator as production volumes rise and competition intensifies. Zimba- bwe remains one of the world's largest producers of flue-cured tobacco, and maintaining consistent standards plays a key role in sustaining its position in export markets. Volumes Surge as Prices Drop Tobacco deliveries in Zimbabwe have surged sharply in the current marketing season, with farmers already earning close to US$200 million from sales, reports The Herald. Data from the country's auction floors shows that volumes have climbed 83% compared to the same period last year, reflecting a strong start to the season and improved output from growers. Earnings have reached about US$198 million, driven by increased deliveries and firm demand for the crop. The rise in volumes points to continued expansion in tobacco production, with more farmers bringing their crop to market. Industry observers attribute the growth to favorable growing conditions and ongoing support programs that have encouraged wider participation in tobacco farming. Despite the increase in volumes, however, prices declined. The average price stood at US$2.79/kg., down from US$3.44/kg previously, indicating softer returns per unit even as total earnings climb. Price ceilings have also shifted. The highest price recorded at auction floors since the season opened reached US$4.92/kg, while contract floors offered up to US$5.75/kg. During the same period last year, the top price stood at US$6.30/kg. Most of the crop has moved through contract arrange- ments, with only about 5% sold at auction floors. Contract sales accounted for at least 67.2 million kilograms valued at US$190 million (US$190 million), while self-financed farmers sold 3.8 million kilograms worth US$7.8 million (US$7.8 million). Auction floors recorded steady inflows since the season opened, with daily deliveries maintaining an upward trend. Leaf quality remains the main differentiator as production volumes rise and competition intensifies. Credit: Quang Nguyen Vinh, Pexels.

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