Category: Leaf

Zimbabwe Leaf Exports Top $1 Billion

Image: Tobacco Reporter
Tobacco export earnings in Zimbabwe have increased to over $1 billion as of Nov. 10, and dryland farmers have continued to plant, according to The Herald.
According to the Tobacco Industry and Marketing Board (TIMB) weekly report data from Nov. 10, there was a 41 percent increase in the value of exported tobacco from $753.14 million from January to Nov. 10, 2022, to $1.06 billion in the same period of 2023.
This year, there was a 28 percent increase in volume terms from 157.95 million kg to 202.68 million kg. The average price increased 10 percent to $5.25 per kilogram.
The Far East market accounts for 64 percent of earnings, followed by the European Union at 14 percent and Africa at 12 percent. The Far East market had the highest average price at $7.19, followed by the EU at $4.37 and Africa at $3.43.
According to the TIMB report, there was a 3 percent decrease in total area under tobacco to 27,615 hectares this year.
Due to the El Nino weather forecast, there has been a 10 percent increase in irrigated area to 17,395 hectares. The area planted under dry land tobacco decreased 20 percent to 10,220 hectares.
The 2023/2024 season shows a 25 percent decrease in growers registered to 107,415. Of the registered growers, 92 percent are contracted.
“We hope mother nature will hear us this coming two weeks because we might lose some of the planted tobacco if it does not rain,” said George Seremwe, chairman of the Zimbabwe Tobacco Growers Association.
“We encourage farmers to do their best to mitigate negative effects of El Nino, and those who have not yet started planting must continue attending to nurseries and prepare land,” said Victor Mariranyika, president of the Tobacco Farmers Union Trust.
Zimbabwe aims to increase the value of its tobacco business to $5 billion by 2025 as part of the government’s Tobacco Value Chain Transformation Plan.
November 16, 2023
Strong Quarter Pyxus

Photo: Pyxus Interantional
Pyxus International reported strong top and bottom line results for the quarter that ended Sept. 20. Net income was $8.1 million compared with a loss of $1.54 million in the comparable 2022 period. Sales and other revenues were $624.25 million during the quarter compared with sales and other revenues of $505.28 million in the second quarter of 2022.
“The momentum we built during the first quarter continued in the second quarter,” said Pyxus President and CEO Pieter Sikkel in a statement. “We delivered solid revenue growth, increased profitability, exercised operating discipline and continued to manage working capital efficiency.
Contributing to the company’s performance was a volume increase of 10.2 percent and an increase in average market prices of 11.7 percent over the same quarter last year. The increase in leaf volume was primarily due to the accelerated timing of shipments from North America and South America and growth from Africa and Asia. Pyxus considers the higher pricing to be a feature of a market that remains generally undersupplied. The company believes the undersupplied condition of the market is also evidenced by its success in seizing opportunities to capture additional business.
Buoyed by its quarterly performance, Pyxus revised its guidance for fiscal 2024 upward and now expects full-year sales to be in the range of $2 billion to $2.1 billion and for full-year adjusted EBITDA to be in the range of $170 million to $180 million.
November 14, 2023
Malawi Devalues

Photo: Africa
Malawi is devaluing the kwacha’s by one third.
In a notice to authorized dealer banks seen by Reuters, the country’s central bank said the kwacha’s exchange rate to the U.S. dollar would be adjusted to MKW1,700 from MKW1,180.
The southern African country has been struggling with dwindling foreign currency reserves due in part to declining revenue from tobacco exports.
Malawi earned $282.62 million from tobacco sales during the 2023 marketing season. While this figure was up substantially from the $182.12 million generated by sales of the golden leaf in the previous season, it is not nearly enough to alleviate the nation’s trade imbalance.
In 2020, Malawi’s import bill was $2.8 billion, versus exports of only $800 million, according to the National Statistics Office.
Depending on the season, tobacco accounts for between 40 percent and 70 percent of Malawi’s export earnings. To reduce its heavy reliance on a single commodity, the country has been working to diversify its economy by developing supplemental value chains, such as mushrooms, bananas and groundnuts.
November 9, 2023
Zimbabwean Farmers Bemoan Power Cuts

Photo: Taco Tuinstra
Power cuts in Zimbabwe are impacting irrigation and increasing tobacco farmers’ production costs, reports The Herald, citing Zimbabwe Tobacco Association (ZTA) CEO Rodney Ambrose.
“Power outages from about 0500 hours in the morning to as late as 2200 hours are a major concern in most growing areas at the moment,” Ambrose was quoted a saying. “Growers are struggling to complete their irrigation cycles and are relying on diesel powered generators, incurring huge costs.”
Ambrose said the crop quality, yield and grower viability would likely be compromised as the option of running generators for irrigation is not sustainable. With curing of the irrigated crop scheduled to start in early December power demand will increase further.
“We are engaging with the power utility to identify clusters where power supply can be prioritized just like they did for the wheat program. However, if power deficits persist nationally, the cluster solution may not entirely resolve the issue. The next option is to plead with the government to provide subsidized diesel or allow duty free imports of fuel primarily for powering generators,” said Ambrose.
Ambrose believes the long-term solution is for farmers to transition to solar power although this has a costly outlay that requires growers to have access to long term financing.
It will also require the government to permit duty-free and tax-free imports of solar equipment for farming activities, he added.
Tobacco farmers have planted 22,298 hectares this season, including 16,962 hectares of irrigated tobacco, according to the Tobacco Industry and Marketing Board.
The report said 105,805 growers had been registered so far compared to 133,724 registered growers during the same period last year, marking a 26 percent decline.
November 8, 2023
Meeting Fails to Ease Growers’ COP Fears

Photo: SindiTabaco
Tobacco growers representatives are unlikely to be admitted to the November meeting of the Conference of the Parties (COP10) to the Framework Convention on Tobacco Control (FCTC) in Panama, according to Vera Luiza da Costa e Silva, who leads Brazil’s National Commission on the Implementation of the FCTC.
Speaking during a round table in Brasília promoted by the House of Representatives. Costa e Silva said the COP has a strict policy of denying access to those who have a conflict of interest. “The secretariat, based at the WHO headquarters, has the credentials to deny participation if some kind of relationship with the industry is at stake,” she explained.
Costa e Silva also insisted that the FCTC does not mention actions that will directly impact the supply chain, but industry representatives participating in the Brasilia meeting weren’t buying it. “Today were told […] that there has never been any attempt to endanger the production of tobacco, but we know that this is not true,” said Iro Schunke, president of the Interstate Tobacco Industry Union, in a statement.
He pointed to actions in what he described as a methodical battle against the production of tobacco in Brazil. “They accuse the sector of deforestation, but it is the segment that has the biggest forest areas,” said Schunke. He also countered allegations of tobacco farmer vulnerability, pointing to recent research suggesting that tobacco farmers earn up to twice the national average income.
Despite concerns about global demand, Brazilian tobacco production and exports have been stable, Schunke noted. Farmers in southern Brazil have planted enough tobacco to harvest 604.73 million kg in 2023—7.95 percent more than in 2022, according to the country’s tobacco growers’ association, Afubra.
November 3, 2023
Azerbaijan Prepares Exports for Italy

Photo: Taco Tuinstra
Azerbaijan tobacco processing factory “Azertertun” has begun production of cured tobacco with principal products for export to Italy, according to 2Firsts.
The factory reportedly uses advanced production equipment from the United States, Italy and Germany. This year, 620.1 hectares of tobacco were cultivated in Balakan, Zagatala, Gakh, Sheki, Oguz and other areas, according to the factory’s general manager.
An estimated 470 tons of processed fine-cut tobacco will come from the cultivated leaf.
November 3, 2023
Growers Demand Voice

Photo: ITGA
Stakeholders in the nicotine business gathered in Dar es Salaam from Oct. 29 to Nov. 1 for the annual meeting of the International Tobacco Growers’ Association (ITGA).
Hosted by the Tanzanian Minister of Agriculture Hussein Bashe, the conference focused on environmental social governance (ESG) practices and the socioeconomic impact of tobacco, among other topics.
ITGA’s President José Javier Aranda urged governments to consider tobacco growers as partners, given the contribution of tobacco as an income generator and employer. He cited the example of Tanzania, where tobacco provides livelihoods to more than 2.5 million people and generates around $180 million annually in export revenue.
The ITGA president also highlighted the lack of alternatives to tobacco production: “Tobacco is still among the main cash crops in most of the countries where it is grown,” he said. “There is no room for crop substitution at this moment and only complementary crops can be considered as a way of transitioning away from tobacco in the long term.”
Participants in the conference also debated the increasing regulatory pressure on the tobacco industry. For example, the EU Supply Chain Due Diligence Directive, which is expected to enter into force in 2024, will require total transparency in the social and environmental sourcing of products imported into the EU. The ITGA delegates agreed that compliance is key, as compliant markets will have better opportunities to position their products and remain stable in the long term.
Speakers encouraged growers to actively pursue ESG initiatives in their communities. Such efforts, they said, will contribute to the long-term viability of the sector.
The forum also reflected on the Conference of the Parties (COP10) to the Framework Convention on Tobacco Control (FCTC), which is scheduled to take place Nov. 20-25 in Panama. As the only global tobacco growers association, the ITGA is looking forward to seeing the evolution of FCTC Article 17 (economically viable alternatives to tobacco growing) because the group has yet to see any evidence of viable alternatives to tobacco growing, ITGA CEO Mercedes Vazquez noted.
Vazquez also insisted on the inclusion in the discussions of farmers, who have been denied a voice in the FCTC debates for nearly two decades. She said the COP has yet to respond to ITGA’s request for observer status at the conference.
The Dar es Salaam meeting also took stock of the latest consumption trends. Modest growth in Asia Pacific and Latin America was offset by significant declines in developed markets, leaving total global cigarette volumes largely unchanged. Among emerging products, heated tobacco products continue to make inroads while e-cigarettes face regulatory headwinds, and nicotine pouches struggle to expand beyond their core markets.
In the leaf market, China, Brazil, Zimbabwe, Malawi and India significantly expanded production in 2023, while volumes in Europe and the United States continued to decline, according to ITGA experts.
November 2, 2023
Zimbabwe Increases Tobacco Planted Area

Image: Taco Tuinstra
Zimbabwean tobacco growers have planted 21 percent more hectares for the upcoming crop season than they did last year, according to the Tobacco Industry and Marketing Board, reports The Herald.
The total planted area increased to 19,256 ha from 15,868 ha in 2022. Irrigated area increased 12 percent to 16,962 ha, and dryland increased 232 percent to 2,294 ha.
Farmers increased dryland area cultivation as a precaution for expected harsh weather conditions forecast for the second part of the rainfall season in 2024.
Tobacco export value increased to $934.17 million in the 2022–2023 selling season, up from $717.178 million during the previous year. Tobacco exports increased 23 percent in volume to 180.54 million kg.
The average price increased by 6 percent to $5.17 per kilogram.
The number of registered growers decreased by 24 percent. To date, 102,098 growers are listed for the 2023–2024 season compared to 133,724 last year. Of the registered growers, 92 percent are contract growers.
“That is a very much appreciated reduction, which will impact on tobacco cost of production as irrigated tobacco uses raw water,” said Zimbabwe Tobacco Growers Association chairman George Seremwe. “We also encourage other stakeholders like the Zimbabwe Electricity Supply Authority to follow suit and reduce electricity charges as cost of irrigation is affected by power bills. The same reduction must be stretched to other inputs like chemicals, fertilizers, and this will result in more tobacco being produced profitably.”
Zimbabwe Tobacco Association CEO Rodney Ambrose stated that the change was welcome if the water price reduction was spread to other crops apart from maize. “We are seeking clarity on a number of areas in the statement, such as the mention of only irrigated maize as being the beneficiary. What about other crops?” he said.
Anxious Masuka, Lands, Agriculture, Fisheries, Water and Rural Development minister, said that the move to reduce water charges by 31 percent is meant to incentivize farmers to commit more hectarage to irrigation for the 2023–2024 summer season.
November 1, 2023
Leaf Traders Agree to Higher Floor Prices

Photo: PMFTC
Farmers and buyers have agreed on new floor prices for Philippine tobacco for the next two trading years, reports The Inquirer.
The floor price for Virginia tobacco grades will increase by PHP9.90 ($0.17) per kg, while that for burley and native tobacco will go up by PHP5.90 and PHP3.90 per kilo, respectively, according to the National Tobacco Administration (NTA).
“We aim to improve our industry by helping one another to balance the economic significance of tobacco as one of the highest contributors to the government coffer,” said Agriculture Undersecretary Deogracias Savellano.
Tobacco farmers have been pushing for higher floor prices since earlier this year, citing an increase in imports and labor.
The NTA convenes the tripartite conference every two years to review and fix tobacco floor prices based on factors such as the world market, production costs and profit margins for farmers, dealers, manufacturers and exporters.
In 2022-2023, the floor prices of Virginia top grades were between PHP86.10 and PHP87.10 per kg. High grades of burley attracted PHP72.10 to PHP75.10 per kg, while the floor price for the native top grade was at PHP77.10 per kilo.
NTA data show that the tobacco industry contributed PHP149.7 billion in revenues to the government in 2020.
The sector provides livelihoods to at least 2.1 million people, including at least 430,000 farmers and farmworkers, the NTA said.
October 29, 2023
Survey: Tobacco Grower Relatively Wealthy

Photo: Taco Tuinstra
Tobacco farmers in southern Brazil earn an average monthly income of BRL3,935.40 ($785.08) from their crops, according to new research conducted by the Federal University of Rio Grande do Sul at the request of the Interstate Tobacco Industry Union (SindiTabaco).
By comparison, the average per capita income in Brazil was BRL1,625 in 2022, according to the Brazilian Institute of Geography and Statistics. Taking into account all sources of income, the tobacco farmers in southern Brazil earn an average monthly income of BRL11,755.30. Seventy-three percent of tobacco farmers in the region have additional income sources, which may include earnings from the cultivation of other crops, land leases or financial investments.
Nearly 73 percent of the tobacco farmers live in masonry houses; nearly 72 percent have three or more bedrooms per household; and all households have at least one bathroom or toilet, according to the study. Almost all households (98.6 percent) have access to electrical energy, via national power grid, while practically 100 percent have heated water.

The results come as no surprise to those who know the tobacco sector, but they could come as a surprise to those who still believe in information based on ideology.
Iro Schuenke, president, SindiTabaco
One hundred percent of the tobacco farmers surveyed had an automobile, while 137 percent owned a property in addition to their home.
Nearly 60 percent of those surveyed have more than eight years of schooling, meaning they have competed their elementary education, or more; among them, 32.2 percent have more than 11 years of schooling, corresponding to high school, and some have taken college courses.
Conducted June 30-July 20, 2023, the survey covered 37 municipalities in the tobacco growing states of Rio Grande do Sul, Santa Catarina and Parana.
According to SindiTabaco President Iro Schuenke, the results reaffirm the economic and social importance of tobacco in rural areas. “At several moments we have heard that the tobacco farmers endure vulnerability conditions, but the research destroys this tale,” he said in a statement. “Just like in 2016 [when the previous survey took place], the results come as no surprise to those who know the tobacco sector, but they could come as a surprise to those who still believe in information based on ideology,” Schuenke said.
October 27, 2023