The Dominican Republic established a Regulatory Council for the “Dominican Cigar” geographical indication (GI) to protect the authenticity, quality and international reputation of its cigar industry. Chaired by Dominican Tobacco Institute Director Iván Hernández Guzmán, the council includes government agencies and industry groups and will oversee compliance with production standards from tobacco cultivation through manufacturing, packaging and storage. It will also promote the designation, support marketing, and train registered producers, with the National Quality Council (Indocal) and National Office of Industrial Property (Onapi) providing technical and legal support.
Category: Agriculture & Sustainability
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Zimbabwe Eyes Tobacco SEZs to Boost Value Addition
Zimbabwe’s tobacco sector is reaching record production levels but declining returns are highlighting the need for greater local processing and value addition, according to local authorities. Tobacco sales reached 358.3 million kg this season, up 1% from 353.3 million kg in 2025, while farmer revenue fell 24% to $892.6 million as average prices dropped 25% to $2.49 per kg. Industry officials and economists warn that global cigarette consumption is declining and the shift toward slim and super-slim products is reducing leaf demand, limiting the value of further production increases.
Industry experts are urging Zimbabwe to establish tobacco-specific special economic zones (SEZs) modeled on manufacturing hubs in the United Arab Emirates. Tapiwa Masedza, founder of Chevron Tobacco, said targeted fiscal incentives, streamlined regulations and improved logistics could encourage investment in cut-rag processing and cigarette manufacturing. Zimbabwe aims to increase tobacco industry revenue to as much as $7 billion by 2030, raise production to 500 million kg and increase local value addition from about 2% to 30%.
Proposed SEZ incentives include a five-year zero corporate tax rate, duty-free imports of complementary foreign leaf for processing and re-export, deferred or zero-rated VAT on inter-merchant and export transactions, accelerated capital allowances, and excise-free exports. Zimbabwe has installed capacity to produce about 18 billion cigarettes annually but manufactures only around 4 billion, according to industry sources. Masedza said removing VAT on local grade exchanges and providing greater regulatory certainty would help merchants blend and process tobacco domestically, allowing Zimbabwe to capture more value from each kilogram of leaf rather than relying on raw exports.
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Philippines NTA Opens Tobacco Growing to Landless Farmers
The Philippines’ National Tobacco Administration (NTA) said landless farmers in Cagayan can enter tobacco production by renting suitable farmland, with partner buying companies potentially providing ₱25,000–₱30,000 ($400 to $480) per hectare in rental assistance along with production inputs and services.
Qualified growers can also participate in the NTA’s Tobacco Contract Growing Scheme, under which farmers repay 60% of production assistance while the remaining 40% is provided as a subsidy. The NTA urged prospective growers to undergo soil testing and site assessments before planting, particularly to ensure adequate water supply and drainage.
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Zimbabwe Posts Record Tobacco Production, Prices Fall
Zimbabwe ended its 2026 tobacco marketing season with a record harvest of more than 357 million kg, surpassing the previous season’s record of 354.8 million kg, according to the Tobacco Industry and Marketing Board (TIMB). The average tobacco price, however, fell to $2.49 per kg from about $3.30 a year earlier due to increased global supply, larger carry-over stocks, and weaker international demand.
The decline in prices renewed calls from the TIMB and growers to diversify into horticulture and other cash crops to reduce exposure to market volatility and climate risks. China remained Zimbabwe’s largest tobacco export market, accounting for 34% of export volumes since the marketing season opened in March.
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Pakistan Seals Five Tobacco Purchase Centers
Pakistan’s Governor Inspection Team (GIT) sealed five tobacco purchasing centers in Khyber Pakhtunkhwa’s Swabi district following inspections prompted by complaints from tobacco growers. The action was taken over alleged violations of tobacco procurement rules, including delayed purchases, unpaid farmer dues, and improper handling of crop purchasing operations.
The sealed centers included facilities operated by Frontier Traders, Atta-ur-Rehman & Company, Ali Leaf Traders, Khyber Tobacco Company, and AK Tobacco Traders. Officials found some companies had not begun purchasing despite instructions from the Pakistan Tobacco Board, while others had outstanding farmer payments or had displayed notices halting purchases despite holding tobacco stocks. The companies were referred to the assistant commissioner’s office in Chota Lahor for further action under applicable regulations.
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Pakistan Growers Demand Greater Transparency
Tobacco growers in Pakistan are pressing the Pakistan Tobacco Board (PTB) to strengthen enforcement of procurement rules, alleging that weak oversight allows buyers, particularly smaller tobacco companies and dealers, to exploit farmers through unfair grading and purchasing practices.
The Swabi Action Committee said PTB officials pledged to enforce approved grading standards, government-set prices, and procurement regulations to make the buying process more transparent and farmer-friendly. The group also called for prompt investigations into procurement complaints and warned it would stage peaceful protests if the board fails to follow through. Separately, growers claimed multinational tobacco companies have reduced purchasing quotas while domestic companies have not finalized contracts in line with PTB regulations.
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AOI Launches Climate-Resilient Tobacco Seeds in Tanzania
Alliance One International introduced a portfolio of proprietary tobacco seed varieties in Tanzania aimed at improving crop yields, leaf quality, and resilience to drought and disease. Developed at the company’s research center in Brazil, the government-approved Alliance One Varieties (AOV) were introduced following a three-year evaluation process and include AOV 212, AOV 405, and AOV 815. Field trials showed yields of up to 3,270 kg per hectare — about 30% higher than traditional seed varieties — while demonstrating improved resistance to environmental stress.
The company said the new varieties are designed to support more sustainable tobacco production and improve farmer income through higher productivity and better crop quality. Alliance One is supporting the rollout through agronomic training and technical assistance for contracted growers and said it plans to expand access to its climate-resilient tobacco seed portfolio to additional tobacco-producing countries as part of its long-term agricultural development strategy.
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Drought Delaying NC Tobacco Crop
Improving rainfall eased drought conditions across North Carolina, but tobacco growers continue to face delayed crop development and higher production costs after months of dry weather disrupted planting. Wilson County extension officials said tobacco plants are running three to four weeks behind normal growth, with insufficient moisture reducing transplant survival, limiting herbicide effectiveness, and increasing weed pressure. Farmers are also encountering challenges with sucker control as uneven plant development complicates field management.
The delays have raised concerns over harvest timing for North Carolina’s largest cash crop, which contributes nearly $13 billion annually to the state’s economy and generated $818 million in agricultural exports in 2024. With tobacco typically harvested beginning around early July, growers now face a compressed harvest window before the first frost, increasing the risk of yield losses while adding labor and irrigation costs that could further pressure farm profitability.
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July Rains Help N.C. Tobacco Crop Rebound
Extension agents in Wilson County, North Carolina, said that heavy July rainfalls revived a drought-stressed flue-cured tobacco crop after prolonged dry conditions in May and June delayed crop development by an estimated two to three weeks. Officials said the rain restored soil moisture, allowing tobacco plants to absorb nitrogen and improve growth, although the later maturity is expected to push harvesting closer to the risk of early frost.
Growers across Wilson, Nash, and Johnston counties reported significant improvement in crop conditions, with many saying the tobacco has recovered dramatically following the rains. While producers remain optimistic about yield potential, they cautioned that saturated fields and the increased risk of disease could complicate harvest as the Wilson tobacco market prepares to open on August 12.
These counties are the heart of North Carolina’s tobacco crop, which, at an average of 100 to 120 million pounds, typically makes up 55% to 65% of total U.S. production.
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PMFTC Remains Top Buyer of Philippine Tobacco
Philippines’ National Tobacco Administration (NTA) recognized Philip Morris Fortune Tobacco Corporation as the largest buyer of Philippine-grown tobacco for the third consecutive year, highlighting the company’s continued support for the country’s tobacco farming sector. In 2025, PMFTC purchased 8.3 million kg of locally grown tobacco — 69% of the 12.1 million kilograms delivered to domestic manufacturers. NTA Administrator Belinda Sanchez said PMFTC’s sustained buying provides tobacco farmers with a stable and reliable market, particularly as the industry prepares for a challenging growing season.
PMFTC said it remains committed to investing in long-term partnerships with farmers, trading partners, and government agencies to strengthen the Philippine tobacco value chain and help keep locally grown tobacco competitive in domestic and international markets.