By Kingsley Jassi:
Tobacco production is projected to grow by 23 percent this year, according to estimates from industry regulator, the Tobacco Commission (TC).
This comes as growers’ interest to produce the leaf is reported to have increased this season, thanks to better prices it fetched this year.
Statistics from the TC show that farmers have indicated to produce 220 million kilogrammes (kg) of tobacco against last year’s 177-licenced volumes.
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TC spokesperson Telephorus Chigwenembe attributes the surge to the outturn of last marketing season, which saw buyers offering higher prices on the market.
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“As grower licencing for the 2024-25 tobacco farming season continues, we have licenced up to 220 million kgs through about 50,000 licences. At the same time last year, we had licenced 177 million kg,” he said.
However, despite licencing farmers to produce 177 million kg last season, the farmers failed to meet the trade demand of 190 million kg as they only supplied 140 million kg.
The TC has fallen short of indicating the buyers’ demanded volumes in the next marketing season but expects an increase.
“In view of the numerous inquiries from companies interested in starting to start buying our tobacco, this season’s trade demand may be even higher than last year’s. There is already a big market for our tobacco. We, therefore, have to do our best as a country to produce enough volumes,” Chigwenembe said.
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In the 2024 marketing season, the country recorded a 40 percent increase in total sales, generating over $396 million up from $283.76 million in 2023.
With many neighbouring countries experiencing sharp drops in produced tobacco volumes, the country’s 10 percent increase was supported by increased competition by buyers leading to higher prices.
In the season, volumes increased to 133.1 million kg from 120.5 million kg, according to the TC report.
However, Tama President Abel Kayembe, while recognising the increased sales in value, bemoaned the dwindling of tobacco volumes, falling short of demand for the past four years.
This year, tobacco volumes are estimated at 140 million kg, against the buyers’ demand of 160 million.
The country’s tobacco farmers have struggled to meet demand over the last four years, attributing this to low prices that discouraged many growers amid high cost of production.
In a previous interview, Tobacco Association of Malawi President Abriel Kalima Banda said on the sidelines of the annual general meeting that the last marketing season would see more farmers interested in growing tobacco.
“For this year’s production, the low volumes can be attributed to weather-related factors alongside poor prices in the previous seasons. But we are hopeful for increased output following good prices being offered on the market this year,” Kayembe Banda said.
However, some tobacco buying companies have also cautioned to ensure there is no overproduction as that leads to low prices.
