|
|
|
|
| Business |
| Tobacco yield rises by 17 % |
|
by
Ephraim Munthali, 11 February 2004
-
16:05:24
|
Tobacco production has increased by 17 percent this year as compared to the volume of the leaf sold the last season.
According to consolidated first round tobacco estimates for 2004, Malawi has grown a total of 141.7 million kg of the leaf against last year’s 121 million kg.
The past year saw Malawi producing million kg of flagship burly tobacco, 14 million kg of Flue-Cured, four million kg of Northern Division Dark Fired (NDDF) and about 700,000 kg of Southern Division Fired (SDF).
But the estimates indicate that Malawi has this season grown 115 million kg of burly, 19.4 million kg of Flue-Cured, 6.4 million kg of NDDF and close to a million kg of SDF.
This falls far below the total amount that tobacco buying companies want to purchase from Malawi.
Buyers are demanding a total of 180 million kg—135 million kg of burly, 40 million Flue-Cured, four million NDDF and one million kg of SDF.
The Commission attributes this year’s increase in burly to campaigns by Tobacco Exporters Association of Malawi (TEAM) encouraging farmers to grow more burly, a move that has seen growers increase their hectarages.
The Commission also said the beginning of normal rains which came after months of erratic down pours early in the season, also boosted production.
TCC said Flue-Cured has increased because major growers such as General Farming, TABAGRI and the Greek Community increased their hectarages this season as compared to last year.
“There are also new growers that have come in a big way such as Press Farming who did not grow the crop in the 2003 season,” said the Commission.
TCC said NDDF and SDF increased due to the ongoing campaign on Western tobacco development.
The estimates did not exclude tobacco that may be lost through illegal cross border trade which could take place when tobacco markets open in Zambia and Mozambique.
“The estimates might change downwards if cross border takes place,” said the Commission.
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.
Earlier crop estimates for last season indicated that the industry would produce a total of 145 million but ended up selling 121 kg.
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 brings in more than half of total foreign exchange earnings, the development pushed the local currency down the hill during the third quarter of last year.
This year’s increase in tobacco production could help boost Malawi’s international foreign reserves which at 1.6 months of import cover are way below the three months minimum.
With donors still reluctant to release their money, tobacco proceeds remain the only option to stabilise the volatile Malawi Kwacha which faces a free fall without aid. |
| |
|
|
|
|
|
