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Category: Agriculture & Sustainability

  • Zimbabwe Bans Non-Contract Tobacco 

    Zimbabwe Bans Non-Contract Tobacco 

    With Zimbabwe expecting another banner tobacco crop, the nation’s Tobacco Industry and Marketing Board (TIMB) continues to work toward regulating the market and protecting farmers from unfair prices and practices. TIMB’s latest directive, made just days ahead of the opening of the marketing season, says that all free-funded tobacco must be sold through the auction system this year. 

    Tobacco production is grown under two arrangements in Zimbabwe, namely contract and self-financing. Previously, farmers and merchants were allowed to buy tobacco from self-financing farmers outside the auction system on arranged terms, which distorted auction prices, which in turn distorted prices for future contract tobacco.

    “We challenge all the 55 licensed merchants this season that there is no room to buy free tobacco outside auction floors,” said TIMB chief executive officer Emmanuel Matsvaire, adding they will have a zero-tolerance policy for breaches.

    Earlier this year TIMB introduced a biometric registration system, underscoring the regulatory board’s commitment to combating illicit practices, among them side-marketing.

    Last year, Zimbabwe’s tobacco export surged to 243.4 million kilograms, valued at $1.31 billion, an increase from 2023’s $1.23 billion. More plantings and favorable weather suggest the 2025 season will be even better.

  • Pakistani Growers Demand Fair Prices

    Pakistani Growers Demand Fair Prices

    In a letter to the Pakistan Tobacco Board (PTB), farmers demanded that the minimum indicative price (MIP) be examined for the upcoming purchasing season. The letter said historically the Economic Coordination Committee kept MIP almost equal to the cost of production (COP), and thus there was virtually no return for the eight months of rigorous labor.

    “Tobacco growers are playing a critical role in the tobacco industry, generating employment for thousands, revenue for the federal government through taxes and foreign exchange from exports,” the letter said. “Therefore, time has come to realize the contribution and hardships of growers.”

    The letter further said there was a dire need for improving the economic condition of growers because if they fail the tobacco industry will collapse and cause unimaginable economic and social loss to the country.

    According to the requirements of tobacco marketing law MLO-487, the average market price should not be less than the previous year. However, the letter noted, that the tobacco marketing law had been flagrantly violated by the companies and that the PTB constantly sided with those companies over the growers.

    Officials of companies said they purchased tobacco according to the price set by the government.

  • Zimbabwe Growers Encouraged to Prioritize Quality

    Zimbabwe Growers Encouraged to Prioritize Quality

    Predicting a significant increase in global flavor-grade tobacco supply for 2025, Zimbabwe’s Tobacco Industry and Marketing Board (TIMB) is urging growers to focus on quality by investing in an energy-efficient curing infrastructure, adopting precision farming techniques, and implementing improved agronomic practices.

    For the 2025 season, Zimbabwe saw a 2.75% increase in hectares planted, which combined with improved rainfall distribution and better agronomic practices, puts the projected national output between 280 million and 300 million kg depending on the weather. Last year’s output of 231.7 million kg of flue-cured Virginia tobacco was a 13.1% increase from 2023.

    The anticipated increase in Zimbabwe combined with projections that Brazil’s output will increase from 461.8 million kg in 2024 to at least 650 million kg in 2025 has experts predicting downward pressure on tobacco prices, particularly for middle to low-end grades.

    Tapiwa Masedza, the factory coordinator for the Tian Ze Tobacco Company, said the global demand for tobacco remains robust, with many companies struggling to meet supply orders due to last year’s reduced crop size. That combined with China’s need for top-end grades gives hope that prices will remain stable for premium leaf, however low- to medium-end grades prices are expected to drop.

    “While the anticipated increase in production is a testament to the sector’s resilience and growth, the potential price pressures underscore the need for strategic planning and investment in quality improvement,” Masedza said. “Mixing grades in bales, excessive moisture, and moldy tobacco can lead to discounts or rejections, ultimately affecting profitability.”

    TIMB is trying to help insulate local farmers from potential subdued prices resulting from excess supply with a new pricing system, expected to be implemented April 5. The system will determine the following day’s minimum price based on the average price of all tobacco sold — both at auction and through contracts — across all grades.

  • Farmers Encouraged to Focus on Quality

    Farmers Encouraged to Focus on Quality

    Tobacco farmers in Zimbabwe have been encouraged to prioritize crop quality in order to combat expected price decreases, according to The Herald.

    The 2025 tobacco marketing season is expected to see an increase in production due to favorable weather conditions, expanded hectarage, and an increase in farmers. However, the anticipated increase in supply along with other global market dynamics are expected to put downward pressure on prices, especially for middle-grade to low-grade leaf.

    “China, the world’s largest tobacco producer and consumer, continues to show strong demand for top-end grades, which may help stabilize prices for high-quality tobacco,” said Tapiwa Masedza, a tobacco trading expert.

    “While the increased production is a positive development, farmers must brace for potential price declines,” Masedza said. “To mitigate these challenges, we emphasize the importance of improving crop quality through better handling, curing, and presentation. Mixing grades in bales, excessive moisture, and moldy tobacco can lead to discounts or rejections, ultimately affecting profitability.

    “In the long term, farmers are encouraged to invest in energy-efficient curing infrastructure, adopt precision farming techniques, and implement improved agronomic practices.

    “These measures can help reduce operating costs, enhance yield, and ensure better returns despite fluctuating prices.”

    The Tobacco Industry and Marketing Board is developing a new price matrix for contract tobacco sales in order to establish a more representative minimum price for the marketing season. The new system is expected to be implemented in the upcoming selling season beginning April 5.

    Under the new system, the day’s minimum price will be based on the previous day’s average price of all tobacco sold, at auction and through contract, across all grades.

    Tobacco is Zimbabwe’s largest single foreign currency earner following gold.

  • Tobacco Harvest Inaugurated in Rio Grande do Sul

    Tobacco Harvest Inaugurated in Rio Grande do Sul

    The tobacco harvest in Rio Grande do Sul has officially been inaugurated, according to SindiTabaco, the Interstate Tobacco Industry Union. In 2024, Brazilian tobacco was shipped to 113 countries and brought in $2.977 billion in revenue from 455,000 tons.

    Results have remained within the projected numbers from the Deloitte Marketing Consultancy in terms of volume (-15% and -10.1%), but revenue from foreign sales was adversely affected by global logistics issues, according to SindiTabaco President Valmor Thesing.

    “Despite all the climate-related problems faced in the 2023/24 growing season, first the prolonged drought and then the flood that occurred in Rio Grand do Sul, we managed to achieve a very positive performance,” said Thesing. “We did not achieve the $3 billion estimated by our research teams because of a global logistic problem. The crop was produced, processed, and commercialized, but we did not manage to ship it abroad before the end of 2024.”

  • Zimbabwe Tobacco Market Introduces Biometric System

    Zimbabwe Tobacco Market Introduces Biometric System

    When Zimbabwe’s tobacco auction floors open March 5, the Tobacco Industry and Marketing Board (TIMB) announced it will implement measures to ensure only legitimate farmers participate in the market and to prevent side marketing. Chelesani Tsarwe, public affairs officer for the TIMB, said a biometric grower management system will be used to track the country’s largest agricultural export.

    “The new system introduces biometric data capture, linking each farmer’s unique grower number to their fingerprints, as well as the GPS coordinates of their households and farms,” Tsarwe said.

    She added that the information system will be conducted at designated key selling points, and that the country is prioritizing the value-addition of the tobacco leaf locally to boost revenue and create jobs.

    Grown mainly on small-scale farms, Zimbabwe harvested more than 240 million kilograms of tobacco last year, generating more than $1.4 billion in revenue.

  • Study: Controlling Mildew, Improving Tobacco Storage

    Study: Controlling Mildew, Improving Tobacco Storage

    Tobacco mildew is a common fungal disease of great economic importance as it causes leaf rot during tobacco storage, seriously impacting the yield and quality of tobacco. Scientists from the College of Tobacco Science at Henan Agricultural University in China led a study that investigated the inhibitory effect of endophytic bacteria on fungal pathogens as it pertains to tobacco mildew biocontrol and identified bacterial biocontrol resources for controlling tobacco mildew and improving tobacco quality.

    In the study, three strains of dominant tobacco mildew pathogens were isolated from the surface of diseased tobacco leaves and used as pathogens to select five antagonistic bacterial strains with good inhibitory effects against tobacco mildew disease.

    The results revealed that the antagonistic mechanism of ZH-2 against pathogens was the production of cell wall hydrolases. Fermentation results showed that strain ZH-2 affected the chemical composition and improved the volatile flavor content and quality of tobacco leaves. Therefore, strain ZH-2 can be used as a potential biocontrol agent for the control of tobacco mildew disease and the improvement of tobacco quality during storage.

  • Tanzanian Tobacco Growing

    Tanzanian Tobacco Growing

    Tobacco is Tanzania’s top export for the second straight year, totaling $517.1 million in 2024, up from its previous record of $340.4 million in 2023, according to the Bank of Tanzania. Tobacco passed traditional “king” crops cashew nuts and tobacco two years ago and now accounts for more than a third of the country’s agricultural exports, as Tanzania becomes Africa’s second-largest tobacco producer behind only Zimbabwe.

    With heavy support from the government — providing significant subsidies, working with leaf companies to purchase the crop, and investing in tobacco processing infrastructure — Tanzania’s market is expected to continue its growth, projected to produce $667.9 million in 2025 and continue growing at an annual rate of 3.44% until it reaches $764.8 million in 2029.

    Agriculture Minister Hussein Bashe has emphasized the importance of fair practices within the local tobacco industry. The government has initiated crackdowns on exploitative practices by cooperative leaders to ensure that farmers receive equitable compensation for their produce. There is also a $300 million cigarette factory being constructed in Morogoro to enhance the nation’s processing capacity and ensure the farmers always have a viable market.

  • NC Tobacco Growers to Vote on Assessment

    NC Tobacco Growers to Vote on Assessment

    North Carolina tobacco growers will decide this month whether to continue assessing themselves to support export promotion. It was announced today (February 11) that a referendum will take place February 19 at the Johnston County Agricultural Building, in Smithfield.

    For years, growers of flue-cured tobacco have assessed themselves to fund Tobacco Associates Inc., which seeks to promote and expand the export of U.S. leaf. If farmers approve the assessment, it will be no more than one-fifth of one cent per pound. The assessment would continue until the next vote in 2029.

  • PTB Dissolution Hurts Farmers, Opens Illicit Market

    PTB Dissolution Hurts Farmers, Opens Illicit Market

    The Pakistani government’s decision to dissolve the Pakistan Tobacco Board (PTB) and hand over the regulatory authority to provincial governments has sparked months of controversy, and will likely have severe economic, social, and regulatory consequences, said Osama Siddiqui, a macroeconomic expert.

    “The PTB has played a pivotal role in regulating tobacco production and the industry under a centralized system that benefits all stakeholders, including farmers and the legal tobacco sector,” Siddiqui said.

    He added that the dismantling of the system could lead to a surge in illegal tobacco cultivation and sales, which would undermine the legal industry. One of the PTB’s critical contributions has been ensuring fair prices for tobacco farmers, especially in Khyber-Pakhtunkhwa (K-P), where the majority of Pakistan’s tobacco is produced. By maintaining a balance between supply and demand, the PTB has safeguarded farmers’ interests, providing them with a stable income.

    The expert fears that provincial governments lack the capacity to manage this responsibility effectively. Without the PTB’s oversight, the farmers could face financial hardships due to falling prices and market instability. A decline in tobacco production will deprive the farmers of their livelihoods and leave them vulnerable to exploitation.

    The PTB’s centralized regulation has also fueled growth in tobacco exports, which increased from $42 million in 2019-20 to $108 million by the end of 2024. Additionally, legal tobacco sales have made a substantial contribution to the national treasury by generating Rs237 billion ($853 million) in revenue through the federal excise duty and sales tax.