Category: Leaf

  • Zimbabwe Growers Start Planting Irrigated Tobacco

    Zimbabwe Growers Start Planting Irrigated Tobacco

    Photo: Taco Tuinstra

    Tobacco farmers in Zimbabwe started planting irrigated tobacco this week, with many expressing optimism about the upcoming growing season, reports The Herald.

    Zimbabwe law stipulates Sept. 1 as the earliest legislative date for transplanting tobacco from the seedbed to the field. The bulk of rain-fed tobacco crop will be planted from late October to early December.

    Most irrigated tobacco is grown by contracted growers who get their inputs on time. About 95 percent of the country’s crop is grown by contracted farmers.

    “We have high hopes this season following the weather forecast so farmers are in the fields,” said  Tobacco Farmers Union Trust President Victor Mariranyika.

     Zimbabwean growers earned $793.18 million from 231.47 million kg in tobacco sales during the most recent marketing season, compared with $896.38 million from 295.94 million kg the previous year.

    However, most farmers made more money than in the prior season, leaving them in a good position for the upcoming growing season.

  • Fire Damages Universal Facility in Dominican

    Fire Damages Universal Facility in Dominican

    Image: sharafmaksumov

    A fire broke out Sept. 2 at Inetab-Kaubeck, Universal Corp.’s leaf-sorting and sales facility in Moca, Dominican Republic.

    In a letter sent to Universal clients obtained by Halfwheel, Inetab-Kaubeck Managing Director Philipp Schumacher said that there was “a material loss of tobacco and one part of the warehouse affected.”

    The letter states that staff were not on-site at the time of the fire, and no lives were lost. It does not list the cause of the fire.

    Video of the fire showed a large warehouse that appeared to still have tobacco in it, but images shared with Halfwheel show a mostly empty building with remnants of tobacco on the floor and tables as well as char marks around the walls and standing water on the floor. 

    In a subsequent video, Henderson Ventura of Tabacalera William Ventura and ADV & McKay Cigars Co. said that it is one of eight buildings at Inetab-Kaubeck and one that focused on Connecticut broadleaf and Pennsylvania tobaccos.

    “We thank all emergency services present and [e]specially the fire departments from Moca and multiple other locations in the Cibao area for their assistance to the fire,” said Schumacher. “Thanks to their tireless efforts, it was controlled swiftly.”

  • Rebuilding the Value Chain

    Rebuilding the Value Chain

    Photos: Taco Tuinstra

    Tabaterra wants to lift Azerbaijani tobacco to global quality standards.

    In addition to investing in cigarette production, Tabaterra has been working to revive Azerbaijani tobacco cultivation. During Soviet times, the republic was a prominent leaf producer, but that activity fell by the wayside as the USSR disintegrated and its value chains perished. To diversify its economy beyond oil and gas, Azerbaijan has been reviving tobacco production, boosting rural employment and developing new sources of export revenue.

    Instead of growing the local semi-oriental varieties previously cultivated for the Soviet market, the new efforts focus on flue-cured Virginia (FCV), which enjoys demand worldwide. In 2021, Tabaterra Leaf started operations with four receiving and curing stations, 10 greenhouses and a green-leaf threshing (GLT) factory along with a laboratory for physical tests.

    Since then, it has been working to increase yields and quality along with farmer incomes. “Our goal is to bring Azerbaijani leaf up to international standards,” says Ibrahim Mammadov, Tabaterra Leaf’s head of finance. “We want to build a brand for the country.”

    While acknowledging that Azerbaijan is not in the same league as flavor tobacco powerhouses like Zimbabwe and Brazil, Mammadov is confident of the nation’s long-term potential in the global filler market. By providing inputs tailored to the local soils and by promoting proper agricultural practices, Tabaterra has been gradually increasing nicotine and sugar levels.

    It has also improved farmer viability. When the company entered the market, tobacco growers were making azn500 ($294.13) per hectare on average, according to Tabaterra Director Elman Javanshir. This year, the per-hectare profits of its contracted farmers, including government subsidies, are expected to reach azn2,000. “So we have quadrupled their profitability in three years,” says Javanshir. The company is also providing its contracted growers with pesticides and personal protective equipment free of charge.

    Such improvements will help Tabaterra not only to retain its farmer base, but they also put farmers in a better position to attract and retain labor. Azerbaijan’s northwestern region is famous for its hazelnuts, which are harvested at the same time as tobacco, thus creating fierce competition for farmhands in August and September.

    Because the GLT was in good condition at the time of its acquisition, Tabaterra only needed to perform a few upgrades. It also constructed a chemical laboratory to help it keep track of its progress in improving Azerbaijani tobacco to the desired quality standards.

    This year, Tabaterra is cultivating tobacco on 700 hectares, mainly in northwest Azerbaijan. But the company also plans to revive tobacco production in the Karabakh region. According to Javanshir, there are natural restraints on the growth of tobacco in the northwest of Azerbaijan, including temperatures and dropping water levels—an important consideration given that tobacco is a thirsty crop.

    In the new areas, by contrast, there is plenty of water. “The rivers there don’t dry up during the summertime like they do in the northwest,” says Javanshir. “Considering the abundance of water resources there, we think we can grow better quality tobacco there—not only Virginia but also burley and some of the other varieties.” The company aims to grow up to 800 hectares in the new areas.

    Along with Ethiopia and Uzbekistan, Azerbaijan is one of a handful of countries where tobacco growers sell their leaf “wet,” i.e., uncured. With average property sizes of between 7 hectares and 8 hectares, Azerbaijani tobacco farms are relatively large, but few growers own curing barns. To boost quality and minimize losses, Tabaterra is encouraging farmers to apply good agricultural practices (GAP). “If they follow GAP, the product will come out of the barn properly, without the brown tobacco that nobody wants,” says Mammadov. Getting long-time growers to change their work habits can be challenging, however. Because farmers’ responsibility ends with the harvest, they tend to be more interested in volume than quality. For example, they may plant the tobacco too densely or skip steps such as topping or sucker control, which they view as costs rather than investments.

    “By reducing the in-row spaces, farmers think they can plant more tobacco and boost their yields, but if you increase the row space, it will make your leaves bigger, and you will get the same weight—plus higher nicotine levels,” says Mammadov. And while skipping topping and sucker control may seem like a labor-saving strategy, it causes the plant to direct its energy toward producing organic material rather than flavor. “You get more leaf but lower quality,” says Mammadov.

    Aware that showing is often more effective than telling, Tabaterra has established demonstration plots throughout its sourcing areas where the tobacco growers can see for themselves what happens with best practices. In addition, the company is providing financial incentives. If the grower plants with proper spacing, applies the appropriate amounts and formulations of fertilizer, and carries out the required topping and sucker control, he will receive a bonus on top of the agreed price.

    Azerbaijan’s leaf tobacco business has come a long way in a short time. Already, it has managed to sell some of its leaf on the international market through a leading tobacco merchant. At the same time, Tabaterra knows there’s still a ways to go. With each growing season, however, the company’s contracted farmers gain skills and experience, and Mammadov is confident that in time, more global customers will find their way to Azerbaijan. “We are now in the third year of our project,” he says. “We hope this will be our best year yet.”

    Taco Tuinstra is Tobacco Reporter’s editorial director.Based in Raleigh, North Carolina, USA, he coordinates the work of staff writers and contributors.On his watch, Tobacco Reporter has won several awards for editorial excellence.Since joining the magazine in 1997, Taco has visited more than 75 countries to meet industry representatives in their markets and to report tobacco news firsthand.
  • Mozambique Leaf Production Plunges

    Mozambique Leaf Production Plunges

    Photo: Taco Tuinstra

    The value of Mozambique’s tobacco production dropped 71.7 percent to MZN200 million ($3.13 million) year-on-year in the first six months of 2024, according to the Club of Mozambique. The organization did not provide a reason for the decline.

    The revenues amounted to 2.7 percent of the target set for the whole year and 1 percent of Mozambique’s industrial output from January to June.

    The government expects growers to cultivate 129,321 hectares and 81,223 tons of tobacco this year.

    According to a 2023 World Health Organization report, Mozambique had the eighth largest tobacco-growing area in the world and the third largest tobacco-growing area in Africa, after Zimbabwe and Malawi.

    Brazil, with a cultivation area of 357,230 hectares, and Mozambique are the only Community of Portuguese Speaking Countries nations mentioned in the WHO report.

  • Tobacco Board Leaders Arrested for Fraud

    Tobacco Board Leaders Arrested for Fraud

    Photo: Taco Tuinstra

    The Zimbabwe Anti-Corruption Commission has arrested two senior executives of the Tobacco Industry and Marketing Board (TIMB) and charged them with fraud, reports The Sunday Mail.

    TIMB chairperson Patrick Devenish and TIMB CEO Meanwell Gudu are accused of extending a loan facility of over US$494,000 to Ultime Accolade Private in May 2021 without the knowledge of the tobacco industry regulator’s board.

    The pair appeared in court just a day after Gudu was acquitted of criminal abuse of office charges involving more than $2 million.

    Gudu was previously charged alongside Stuart Shanyika, a former head of special services at the TIMB, and Andrew Evaristo Matibiri, a former TIMB CEO. The trio was arrested in September 2022.

    The state alleged that the executives, acting in connivance, entered into private agreements with handpicked tobacco contractors.

    They allegedly used funds from a TIMB loan obtained from Agribank through the Reserve Bank of Zimbabwe to support these companies, contrary to provisions of the loan agreement.

  • Seed Sales Surge

    Seed Sales Surge

    Photo: Taco Tuinstra

    Tobacco growers in Zimbabwe have bought more than 1,000 kg of seed to date, reflecting a significant increase over the 831 kg sold at the same time last year, reports the Sunday Mail.

    The seed purchased is enough to cover 201,036 hectares, according to the Kutsaga Tobacco Research Board.

    Tafadzwa Chimuti, spokesperson for the Association of Tobacco Growers, said the upcoming farming season could set new records in terms of acreage, quality and output.

    “This could be a record-breaking year, driven by last season’s favorable prices and the lack of alternative crops offering better returns,” he was quoted as saying.

    The most recent harvest was negatively impacted by drought related to the El Nino weather phenomenon.

    The upcoming growing season, by contrast, will be influenced by the La Nina weather phenomenon, which is expected to bring increased rainfall.

  • Tanzania Tobacco Exports Hit $438 Million

    Tanzania Tobacco Exports Hit $438 Million

    Image: Tobacco Reporter archive

    Tanzania’s tobacco export value has hit $438.5 million, more than double the previous year, according to data from the Tanzania Revenue Authority (TRA) and Bank of Tanzania (BoT), reports The Guardian.

    The government’s target was $400 million.

    Tobacco exports have now surpassed coffee and cashews as the leading traditional export earning commercial crop. Tobacco is currently produced under contract.

    The value increase is a result of a crop production increase to 122 million kg as well as an increase in commodity price in the world market.

    Tanzania is now the second largest producer of tobacco in Africa following Zimbabwe.

    For the 2024/2025 season, Tanzania aims to produce 200,000 tons of tobacco, and for the 2025/2026 season, the country aims to produce 300,000 tons.

    The goal is to increase export earnings to between $600 million and $700 million annually, according to Hussein Bashe, the minister of agriculture.

    According to Bashe, more than 50 percent of tobacco was bought and sold abroad by local companies, marking a first for the country.

    Statista projections show Tanzania’s tobacco products market generating $644.9 million in revenue in 2024.

  • Brazilian Tobacco Suitable to Ship to China

    Brazilian Tobacco Suitable to Ship to China

    Image: SindiTabaco

    On Aug. 9, the Interstate Tobacco Industry Union (SindiTabaco) hosted a meeting to formalize the closure of the tobacco pre-inspection procedure for the 2023/2024 crop year, one of the requirements of the bilateral trade protocol between Brazil and China. The meeting was held in hybrid format, with the virtual presence of the technicians from the General Administration of Customs China (GACC) and the representative of the Ministry of Agriculture, Livestock and Food Supply (MAPA) and of the National Organization for Brazilian Phytosanitary Protection (ONPF), Pedro Carneiro Abreu.

    Other authorities from Brazil and China attended the event as well.

    “This is a primordial moment for compliance with the protocol. The samples were collected in a very effective manner, and it is with great satisfaction that I inform you that no pests were detected in the collected samples. This once again corroborates the quality of the Brazilian tobacco. China is one of our largest importers of tobacco, and this partnership plays a fundamental role for the continuity of the businesses between the two countries. We are sure that we will continue making strides in this relation,” commented Abreu from MAPA Brasilia.

    “Our participation consists in representing this commitment, which is also shared by minister Carlos Favaro, besides acknowledging this activity as relevant for the entire country. In our understanding, this expresses our responsibility with regard to the Chinese inspection organs,” said Jose Cleber de Souza, superintendent at MAPA RS.

    The MAPA was in charge of collecting the processed tobacco samples and sending them to the Central Analytical Laboratory of the University of Santa Cruz do Sul (UNISC) for laboratory tests that confirm the phytosanitary status of the product prior to shipment. Roque Danieli, tax auditor and head of MAPA’s Plant Health and Inputs Inspection Service in RS, presented details about the pre-inspection activities.

    “During these 23 days in which we worked jointly with the GACC representatives, in virtual format, it was possible to attest to the quality of the 2023/2024 crop and demonstrate that, at field level, the 2024/[20]25 crop is now under cultivation with all the necessary cares in compliance with the requisites set forth on the protocol. The integrated production system gets the credit for the fact that tobacco is the commercial crop that uses the least amount of pesticides at field level, a result of the constant work of the farm extension agents. We hope that the presentation of the works is cause for satisfaction, and next week, we shall send the final report to Brasilia to be forwarded to the GACC,” Danieli said.

    Zhang Nan Zhengrong, Leader of the China Leaf Company Delegation, presented the pre-inspection report to the attendees of the meeting jointly with the technician responsible for the Central Analytical Laboratory of UNISC, professor Adriana Dupont Schneider. She gave details of the analyses.

    “This year, we analyzed a total of 54 lots with samples collected in eight companies. The laboratory activities took 24 days, and they certified the phytosanitary safety with regard to the nine quarantine pests set forth in the agreement, of which, six are types of insects, two weeds and the fungus known as blue mold. All the results were negative for the pests included in China-Brazil trade protocol,” said Schneider.

    “Tobacco is an agricultural crop that suffers harsh criticism but has been vigorously defended by the MAPA,” said SindiTabaco President Iro Schuenke. “This has a lot to do with the social and economic importance of the crop for our country, especially for the South Region. China is our second-largest importer, coming only after Belgium, and every year purchases big amounts of our tobacco. And this is the moment for a special mention of the farmers that cultivate tobacco in Brazil who, along with the farm extension agents, have performed all the necessary works for our compliance with the necessary requisites that have kept Brazil as top leaf exporter over the past 30 years.”

  • Strong Start for Universal in Fiscal 2025

    Strong Start for Universal in Fiscal 2025

    Photo: Taco Tuinstra

    Universal Corp. reported net revenue of $597.1 million for the first quarter of its fiscal year 2025, up by approximately 15 percent for both its tobacco and ingredients operations segments. Operating income was $17.2 million, up 56 percent compared to the same quarter last fiscal year.

    The revenue increase in the tobacco operations segment was driven by higher sales volumes and prices. “Coming out of an exceptional fiscal year 2024, we benefited from continued strong demand from our tobacco customers,” said Universal chairman, President and CEO George C. Freeman III in a statement.

    “We believe this demand will continue to support solid results for the segment for fiscal year 2025. Our strategic decisions to accelerate tobacco crop purchasing allowed us to secure our contracted tobacco in certain dynamic markets, which has positioned us well to meet customer demand. As in previous fiscal years, we expect that tobacco shipment timing and related revenue recognition will be more heavily weighted toward the second half of our fiscal year 2025.

    “Our uncommitted tobacco inventory levels at June 30, 2024, remained low at about 13 percent, and we believe that global leaf tobacco remains in an undersupply position. Looking ahead, we expect that recent elevated green tobacco prices will incentivize farmers to increase planting for the next season, potentially leading to more balanced markets in the coming years.”

  • Moldovan Tobacco Sector Asks for Help

    Moldovan Tobacco Sector Asks for Help

    Image: Igor Syrbu

    Tutun Moldova has asked the government to help tobacco growers cope with adverse events such as drought, reports IPN Press Agency.

    According to the association, this year’s dry spell has negatively affected two-thirds of the 400 hectares cultivated with tobacco.

    In an open letter, Tutun Moldova President Vasile Coșneanu asked Prime Minister Dorin Recean and Minister of Agriculture and Food Industry Vladimir Bolea to consider tobacco producers’ plight.

    According to Coșneanu, Moldova’s tobacco industry can be highly profitable. In 2000, Moldova earned more than $29 million from leaf exports. In 1985, farmers cultivated tobacco on about 77,000 hectares. By 2023, however, this area had dropped below 200 hectares.

    Tutun Moldova believes that sector can once again become a pillar of the national economy, providing up to 40,000 jobs and contributing to GDP growth.

    However, for this to happen, the sector requires support from public authorities, the association noted, adding that tobacco growers had neither received nor requested public assistance over the past decade.

    “This year, however, the severe drought we are facing made us ask you to order the creation of a working group to assess the complicated situation in which the producers have found themselves and to develop a plan of concrete and realistic actions that would be implemented to remedy the state of affairs,” the group wrote in its letter.

    “We express our willingness to provide the necessary support to this working group, as we consider that the interest is mutual.”