Tag Archives: TCC

Malawi

Buyers challenge tobacco farmers to produce 160,000 tonnes next year

Special Absalom

Tobacco farmers in Malawi have been challenged by buyers to produce 160,000 tonnes of the leaf in the 2017-2018 tobacco growing season.

According to a press statement from the Tobacco Control Commission (TCC), released on Friday and signed by TCC Acting Chief Executive Officer, David Luka, out of what buyers are demanding, 130,000 tonnes is burley, 25,000 tonnes is flue cured tobacco, and 5,000 tonnes is dark fire cured tobacco.

Maravi Post has established that Malawi’s tobacco farmers produced 152,000 tonnes this year, a 43,000 plunge from 195,000 tonnes they produced in last year.

The findings also reveal that Malawi sold 106,000 tonnes of tobacco out of 152,000 produced this year, which raked in a total of US$212 million (about K155.6 billion).

In a telephone interview yesterday, Tobacco Commission CEO Luka asked tobacco farmers not to disappoint the buyers.

“Farmers should not lose this opportunity, they should make sure that they match the buyers’ demand. However, my plea is that they should not produce beyond the demand because this always affects the prices,” he said.

Luka said currently. the Commission is registering and issuing tobacco quota’s, and that “there will be no extension of the registration period this year.”

He said the TCC closes issuing the 2017-2018 quotas at the end of September.

A tobacco farmer in the northern region, Leonard Kiyombo, thanked the TCC for the timely alert.

Malawi

Malawi’s tobacco earns US$172.3 million in 14 wks; market to close in August

Ausborn Banda

LILONGWE-(MaraviPost)- Malawi realized US$172.3 million for the past fourteen weeks since tobacco marketing season officially opened ?on April 10?, this year.

The earnings surpassed what was fetched last year at the same period, which was at US$128 million, representing a 35 percent increase.

This is the latest statistics obtained from the Tobacco Control Commission (TCC) as of July 7, 2017 that about 88 million kilograms with an increase of six percent compared to last year’s 83 kilogram with average price at $1.95 per kg.
With the current state of trading, this year’s tobacco marketing season is expected to close at the end of July or early August.

TCC Acting Chief Executive Officer, David Luka, expressed gratitude over this year’s production season, and said, it is the best season in recent years, due to stable market with many earnings.

Luka attributed the success of the season to collective efforts by all stakeholders and minimal interruptions to the sales.

He disclosed that the Commission was conducting sales stocking taking that will assist his office to decide the time to close the market.

“A survey we conducted two weeks ago, shows that there is not much tobacco out there with the growers, hence from our estimates, we should be closing the season in two weeks’ time.

Limbe will be the first to close, as currently, sales are being conducted based on stocks available.

“Trading done once or twice a week or once enough stocks have accumulated to conduct a sale. We had a smooth season not only because of the low tobacco output we had this year, but also because all stakeholders worked together and dialogue was key throughout the season,” delighted Luka.

In 2016, a total of 194 million kgs of tobacco was sold at an average of US$1.42 per kg, in which Malawi realized US275 million. This was a drop from US$362 million of 168 million kg of tobacco sold in 2015.

Malawi has in 2017 produced 126 million kilograms of tobacco against a requirement of 150 million kgs by buyers.

Business

Malawi tobacco market extended to 2017: US$263 million realized

Maravi Post correspondent

LILONGWE-(MaraviPost)-The country’s tobacco marketing season which was expected to close on December 2, has been extended to the undisclosed date until all the green gold on the auction floors is sold.

The Maravi Post visit to Lilongwe Auction floors on Friday witnessed continual selling of the crop coupled with low prices and high rejection rate for both contract and auction tobacco farmers.

This is the second time the selling season has been extended after Tobacco Control Commission (TCC) prolonged the same in October this year.

Tobacco market extended
Tobacco market extended

According to AHL Group Corporate Affairs Manager Mark Ndipita, total of 182 million kilograms of tobacco has been sold in week 34 with the realization of US$263 million into government confers.

With the continual sending of green gold into three selling points; Mzuzu, Chinkhoma and Lilongwe, the authority has decided to extend the marketing season until all tobacco is sold.

TCC has however attributed dangling of the country’s green gold prices for past three years and 2016 inclusive marketing season to overproduction.

Overproduction of 30 million kilogram yearly has been registered mainly on burley tobacco which buyers are unable to fit in with their buying power.

For instance, this year buyers were looking for 132.5 million kilograms against an estimated local production of 165 million kilograms.

As a result tobacco buyers have already given 151 million kilogram ceiling of all types of tobacco in the next season.

This has prompted TCC to start enforcing strict quotas on farmers to remain within the required volume of tobacco in 2016/2017 growing season.

The new system which is dubbed as Farmers Management System (FMS) will require growers to provide information about their fields when applying for quota licenses.

Meanwhile, TCC has also extended the tobacco registration period of farmers for the 2016/2017 tobacco growing season to end December, 2016 due to shortage of registration cards.

The exercise which started in August was expected to end November 30, and as of November 29 about 63 growers had registered out of the targeted 150,000 farmers.