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| Business |
| Farmers association says tobacco prospects higher,Farmers association says tobacco prospects higher |
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by
Ephraim Munthali,Ephraim Munthali, 05 January 2004
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16:03:47
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Tobacco Association of Malawi (Tama) said on Monday it expects higher volumes and quality tobacco leaf this year than in 2003 following buyers’ promises to growers that there will be better prices on the floor.
Tama has, however, warned that if the rains stop early, the present “promising crop” will be seriously affected the result of which could be low quality leaf and prices.
Tama president Albert Kamulaga, who indicated that the association will be computing the crop’s estimate figures this month, said in an interview the flagship burley tobacco will give the best harvest followed by flue cured.
Kamulaga was responding to a question on how the major cash crop will fair this year considering the prevailing weather patterns, particularly in the southern region where rains are erratic.
He explained that since there are good rains in the northern and central regions, where major tobacco growing districts are located, the country’s main foreign currency earner should do well.
“Our only worry is if the rains stop early because that will be bad news. Otherwise, the growers have done their best mainly because buyers have promised them good prices and due to timely extension services to the growers.”
Last season, sales and volumes of tobacco dropped drastically after being hit by leakages into informal border trade, low prices, post harvest losses, high interest rates, fluctuations in the kwacha and high costs of farm inputs.
As a result, government lost K4.5 billion and also lost its status as the world’s biggest exporter of burley tobacco.
Because the crop alone earns three quarters of total foreign exchange earnings, the development pushed the local currency down the hill during the third quarter of last year.
Last year, the industry failed to increase the volumes of flue cured tobacco to take advantage of the situation in Zimbabwe whose production was expected to hit all-time low because of Harare’s controversial land resettlement programme that has crippled the once vibrant industry and strangled that country’s economy.
Industry experts say the prevailing situation Zimbabwe could raise Malawi’s position to the world market as an alternative source of tobacco.
,
Tobacco Association of Malawi (Tama) said on Monday it expects higher volumes and quality tobacco leaf this year than in 2003 following buyers’ promises to growers that there will be better prices on the floor.
Tama has, however, warned that if the rains stop early, the present “promising crop” will be seriously affected the result of which could be low quality leaf and prices.
Tama president Albert Kamulaga, who indicated that the association will be computing the crop’s estimate figures this month, said in an interview the flagship burley tobacco will give the best harvest followed by flue cured.
Kamulaga was responding to a question on how the major cash crop will fair this year considering the prevailing weather patterns, particularly in the southern region where rains are erratic.
He explained that since there are good rains in the northern and central regions, where major tobacco growing districts are located, the country’s main foreign currency earner should do well.
“Our only worry is if the rains stop early because that will be bad news. Otherwise, the growers have done their best mainly because buyers have promised them good prices and due to timely extension services to the growers.”
Last season, sales and volumes of tobacco dropped drastically after being hit by leakages into informal border trade, low prices, post harvest losses, high interest rates, fluctuations in the kwacha and high costs of farm inputs.
As a result, government lost K4.5 billion and also lost its status as the world’s biggest exporter of burley tobacco.
Because the crop alone earns three quarters of total foreign exchange earnings, the development pushed the local currency down the hill during the third quarter of last year.
Last year, the industry failed to increase the volumes of flue cured tobacco to take advantage of the situation in Zimbabwe whose production was expected to hit all-time low because of Harare’s controversial land resettlement programme that has crippled the once vibrant industry and strangled that country’s economy.
Industry experts say the prevailing situation Zimbabwe could raise Malawi’s position to the world market as an alternative source of tobacco.
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