Contracting tobacco farmers to success

If 63-year-old Joyce Msiska had her way, she would rewind the hand of time to May 7, 2024.

This is because on that day, Msiska—who is from Kalasa Village, Traditional Authority Chikulamayembe, in Rumphi District—could not believe her eyes at the Mzuzu Auction Floors, where tobacco she had cultivated under contract farming was bought at the highest price during the opening day of sales.

“I could not believe that the tobacco I had cultivated was selling at as high a price per kilogramme. It was the happiest moment in my life.

“Ever since I started tobacco cultivation under contract farming in 2017, I could not imagine, even in my wildest dreams, a day when I would be all smiles at the auction floors. But that is exactly what happened,” Msiska, who is contracted to Alliance One Tobacco Company, explained in her home village earlier this month.

Mzuzu Auction Floors can sell 7,000 bales of tobacco in a day and receives tobacco from farmers in Mzimba, Rumphi, Chitipa, and other districts.

For Msiska, who is part of the three-member Vipya Club, the auction floors have become her beacon of hope, a situation she wants to persist in.

“Because of the prices that were offered by Alliance One Tobacco Company last year, I managed to generate a good amount of money from the 24 bales of burley tobacco I sold. After repaying my loan, I remained with a substantial amount that has enabled me to meet my basic needs.

“Through contract farming, for example, I managed to buy a piece of land at Rumphi Boma last year. I have also constructed a house using proceeds of tobacco,” Msiska, whose scheme also has Medrina Mhone and Maggie Chitete, explained.

“We, women, want to empower ourselves. We find contract farming to be a women empowerment tool as, through tobacco cultivation, we are living the high life,” Msiska, a mother of three, pointed out.

Msiska cannot imagine a day she would leave Luviri Scheme, which is under their club.

Less than five kilometres away, also in Rumphi District, farmer Moses Mpauka Chitali Chirambo is looking forward to another “fruitful season”.

The 60-year-old barley tobacco farmer, who is contracted to Alliance One Tobacco Company, said his life changed after he joined the Integrated Production System, also known as contract farming, in 2008.

“When I was not contracted to any tobacco buyer, which was in 2004, because that is when I started tobacco cultivation, I was not generating as much as I do now, probably because I was not benefiting from extension services.

“After I joined contract farming under Alliance One in 2008, things started ticking, such that I have been able to pay school fees for two children, buy livestock such as chickens, goats and cattle. We no longer face the problem of food insecurity at the household level,” he explained.

Mpauka Chitali Chirambo said he will particularly remember last year, when his tobacco fetched “good prices”.

“While climate change, which culminated in situations such as dry spells and floods, threatened to disrupt tobacco output last year, we still generated profits. The advantage of contract farming is that one knows there are ready buyers for tobacco, ensuring market sustainability. To say the truth, we receive top-notch extension services,” the father of three stressed.

He is hopeful that prices will also “be unbelievably good” during this year’s tobacco sales season.

At Madise Scheme, which is in the area of Inkosi Mtwalo, Mike Moyo testifies to the impact of IPS on his life.

Moyo, who is from Kasoti Village and is a member of Mataya Club, said he now generates more money than he used to before he joined contract farming in 2013, “when I met Alliance One Tobacco Company officials and expressed interest in joining them under IPS”.

“For your information, I started tobacco farming, on a trial basis, in 2007. However, reasonable prices were not guaranteed at the time.

“When I shifted from non-contracted farming to contract farming, things started changing as sales were guaranteed. I particularly have fond memories of 2024, when prices were reasonable. As a result, I bought a vehicle, an ox cart, cattle, and even constructed a house.

“Food security is also guaranteed because, apart from tobacco cultivation, I also cultivate groundnuts, sweet potatoes and beans,” Moyo explained.

He added that they cultivate healthy leaves because they get fertiliser and other inputs from the tobacco buyer.

The farmer further lauded Alliance One for discouraging the involvement of children in tobacco production, saying this gives children a chance to attend school, which will put them in a position to become responsible citizens in the future.

“I am enjoying the fruit of contract farming. I hope we will have good prices this year so that we may continue to contribute towards the economic development of the country,” Moyo said and he is hoping for a positive outcome this year.

After all, last year, when he cultivated tobacco on three hectares, he produced 70 bales of tobacco, which he sold. As for his club, it cultivated 150 bales of tobacco.

“I plan to have a tractor which I can let out to fellow farmers,” Moyo revealed.

On their part, Alliance One provides agricultural extension services to all contracted growers, which include the promotion of good labour practices for farm workers.

Furthermore, their Corporate Social Responsibility project also benefits the contracted growers in their growing areas, giving back to the community through the construction or renovation of school blocks, health centres, and as direct rewards to outstanding performers, conduct raffles for the top performers, which has created excitement between Alliance One’s contracted growers.