Tobacco Asia

Volume 20, Number 3

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44 tobaccoasia LEAF NEWS 烟叶新闻 Zimbabwe Seasonal Exports Improve Tobacco seasonal export earnings have reached US$253 million after the sale of 45.1 million kg (m.kg) of tobacco since the commencing of the season in March this year. Figures from the Tobacco Industry Marketing Board (TIMB) show that seasonal exports improved from 42.3m.kg valued at US$246.5 million sold last year to 46m.kg today. China remains the biggest tobacco export destination for Zimbabwe after absorbing 20.2 m.kg of tobacco valued at US$164 million. South Africa is the second highest importer after purchasing 9 m.kg of tobacco worth US$26.2 million, with Indonesia coming second after buying 2.2 m.kg valued at US$11.7 million. Zimbabwe's tobacco is now being exported to 40 countries, up from 37 during the same period last year. According to TIMB, 113.5 m.kg of tobacco valued at US$330 million has so far been delivered to both auction and contract floors. During the same period, last year 96.3 m.kg of tobacco were sold for US$281.2 million. A total 21.2 m.kg worth US$55.6 million of tobacco has been delivered so far at auction while contract floors dominated after receiving 91.6 m.kg worth US$274.3 million. The average price of US$2.91 is 0.42% higher than US$2.92 which was obtaining during the same period last year. The number of tobacco growers plunged by 22% from 92,430 last season to 71,728 after farmers failed to raise money for inputs ostensibly due to poor prices. Poor quality has been to lack of expertise by upcoming small scale tobacco farmers who mostly embrace the golden leaf cultivation after dollariza- tion. Rejected bales decreased to 91,363 from 116,527 recorded last year. Tobacco farming is mainly driven by small scale tobacco farmers which now stands at 65,365 from 4,000 in 2004. Tobacco production generates considerable rural employment as the majority of rural people after maize cultivation suffered huge setbacks prompted by unreliable payment. Zimbabwe is the largest producer of tobacco leaf in Africa and the world's fourth-largest producer of flue-cured tobacco, after China, Brazil, and the US. Zimbabwe Breaks into Cigar Tobacco Valley smallholder farmers in Manica- land have made a breakthrough into lucrative cigar tobacco farming after clinching a market in Germany, the country's Financial Gazette reports. The farmers are producing a high quality strain used to make cigar wrappers, with assistance from seasoned commercial farmer, Lindsay Guild. Wrappers are the most expensive leaf to produce. However, they also fetch very good prices on the market. This is break- ing new ground for the farmers, as Zimbabwe is known as a producer of flue-cured tobacco. A total of 13 smallholder farmers are currently part of the farming venture. An official involved with the project said they were growing a cigar tobacco strain known as cubra, which is used as a wrapper. Guild has partnered with Europe- based Von Eicken, which specializes in a wide range of tobacco products, in the project. The venture, which was first mooted in 2013, was followed by the launch of the Cigar Wrapper Tobacco Auction Floor at Mapetu Farm in Burma Valley after a successful trial run of the top earning golden leaf last season. This development makes Zimbabwe the third African country after Camer- oon and Kenya to produce cigar wrapper tobacco. "Our target is to reach 14 to 15 tonnes in sales by next year," said Guild, who has been growing tobacco since 1977. "Last year, we did one hectare as a trial and we fermented it and it's now on its way to Germany. They were happy with the trial run. So this year we have gone up to about 11 hectares including small-scale. And then next year we plan to double the production," he said. Guild said plans were underway to seek more foreign markets since cigar tobacco was on high demand in America, United Kingdom, and neigh- bouring South Africa. He, however, pointed out that Von Eicken was financially bankrolling the project. Cigar tobacco has no additives and is considered an environmentally friendly cash crop as it is air cured. It also fetches higher prices on the market compared to flue-cured tobacco. Malawi Prices Up with Higher Quality Officials from auction floors say tobacco prices have now picked up after weeks of stormy sales following low prices and high rejection rates. Albert Changaya of Tobacco Control Commission attributed the better tobacco prices to good leaf that has started arriving at auction floors. "Farmers have stopped bringing stems, they are now bringing quality top leaf that is attracting good prices so all is well now," said Changaya. He said however that burley is facing problems due to overproduction. "Our team will be going out soon for the last assessment of how much was grown and how much has been sold so that we find out how much is remaining. We do three assessments and this is the last one," said Changaya. He said flue-cured tobacco is doing well on the market. This year there are 9 tobacco buyers on the market down from 11 last year after Nyasa Manufacturers, sponsors of Nyasa Bullets, pulled out of the market to concentrate on joint cigarette manufacturing with an Egyptian company. Uganda After Ban, Move to Other Crops When management of Budongo forest in Masindi district of Uganda ordered British American Tobacco (BAT) to halt their operations in Buliisa district, farmers were hit by uncertainty until they resorted to growing other crops. The affected were farmers in Kihungya and Biiso sub-counties, which are adjacent to the forest. The farmers used to cut trees for poles to use in the construction of tobacco barns and tobacco leaf drying, but the forest authorities said the farmers were depleting the forest in the interest of tobacco growing. For instance, one of the former tobacco farmers from Kihungya village, Abdul Karim Pasikale, said after the ban he ventured into maize and coffee. Another ex-tobacco farmer, Herbert Izooba, from Kalengeija B village in Biiso Sub-county, has shifted to growing cabbage and eggplants. The Buliisa MP Stephen Biraahwa encourages farmers to grow multi-pur- pose crops that serve as cash and food

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