Category: Leaf

  • Growers Protest Rejections and Prices

    Growers Protest Rejections and Prices

    Photo: Taco Tuinstra

    Sales at the Kanengo Auction Floors in Lilongwe came to a standstill on Aug. 23 as farmers protested high rejection rates and low offers made by tobacco buyers, according to The Nyasa Times.

    The tobacco market was temporarily suspended over what farmers complained to be “continued low prices on offer.”

    Some buyers have reportedly been offering as little as $0.50 per kg, which is below the government’s set minimum prices for the crop.

    Minister of Agriculture Lobin Low urged the buyers to comply with the country’s laws in dealing with the farmers by offering improved prices for the leaf. “This is sad that currently farmers are getting as low as $0.50 on their tobacco,” he was quoted as saying. “What we are asking is to simply adjust the prices upward.”

    His call was echoed by AHL Sales CEO Graham Kunimba, who said the rejection rate has hit an alarming 70 percent.

    But the buyers seemed not ready to budge as they insisted that the leaf on offer is of low quality; hence, even the offered $0.50 is just there as a “favor” to the farmers.

    Disappointed by their earnings from tobacco, a group of Malawi growers had earlier threatened to stop growing the golden leaf.

  • Malawi: Farmers Threaten to Quit

    Malawi: Farmers Threaten to Quit

    Photo: Taco Tuinstra

    Some farmers in Malawi have threatened to stop growing tobacco due to lack of sustainable payment, according to Malawi24.

    The farmers said that growing tobacco under the current contract system is leaving them more impoverished than they would be if they invested their own resources in the process.

    “It’s better to withdraw and let those companies do the work; it’s not in order for a farmer to spend time growing tobacco and later earn less. This is disgusting,” said David Chirwa, a seasoned tobacco farmer.

    “It’s not on. Imagine toiling for a year and earning MKW100,000 [$123], the rest being earned by a tobacco company. This is nuisance. We’re not their slaves,” said Tinkho Muyaba, interim chairperson for the Concerned Tobacco Growers Union.

    Tobacco is a demanding crop to grow, requiring close monitoring throughout the whole process. “[Tobacco] is one of the most agonizing crops to grow,” said Jeremiah Chihana, another tobacco farmer. “We spend sleepless nights. It’s an insult, therefore, to be taken for granted by these tobacco companies.”

    Tobacco farmers have said that unless the government intervenes to get rid of the contract system, they will likely venture to other crops, such as soya.

  • Tobacco Board Ups Andhra Crop Size

    Tobacco Board Ups Andhra Crop Size

    Photo: Tobacco Reporter archive

    The Tobacco Board of India has fixed the 2021–2022 crop size for Andhra Pradesh at 130 million kg, reports The Times of India, nearly 15 million kg more than last year’s crop size.

    The decision to authorize a larger crop was driven by the reasonably decent prices offered by traders for the most recent tobacco crop.

    In April, the board increased the 2021–2022 crop size for Karnataka to 97 million kg from last year’s 88 million kg.

    The board trimmed the crop sizes for Andhra Pradesh and Karnataka in the wake of Covid-19. But with traders buying the entire stock, the board decided to revive production.

    The board also elected K. Vasudeva Rao as vice chair for a one-year term during the crop size meeting.

  • Paul Marobella Named President at Republic

    Paul Marobella Named President at Republic

    Paul Marobella (Photo: Republic Brands)

    Republic Brands has named Paul Marobella as its president and chief marketing officer.

    Marobella brings more than 25 years of marketing, brand and leadership experience developing award-winning strategies for renowned brands, including Jim Beam, Adidas and Dos Equis. Most recently, he led 2,500 people while at the Paris-based advertising holding company Havas as chairman and CEO of North America.

    While there, his teams won multiple “agency of the year” and “best place to work” awards while consulting on growth strategies for many of the world’s top brands. Prior to Havas, Marobella led a digital experience division of Accenture Interactive’s Wire Stone, consulting with brands such as Motorola, Conagra, Microsoft and Nike.

    Marobella is also active in providing opportunities to America’s inner-city youth as a sitting member of the National Hockey League’s Fan Diversity and Inclusion Council, an advisory board member to the Chicago Blackhawks Foundation and Chairman of the Inner-City Education Program in Chicago.

    “Paul’s world-class expertise in transforming global brands, increasing cultural relevancy and propelling enterprise growth brings a valuable opportunity to our multinational company as we enter the next era of the roll-your-own category,” said Don Levin, chairman and founder of Republic Brands, in a statement.

    “It’s a rare opportunity in one’s career to join an established, growing company like Republic with our iconic stable of brands and appetite to capitalize on the once-in-a-lifetime growth opportunities the rolling category will experience over the next decade. Don has built an amazing company with incredible people; I am very excited for our future,” said Marobella.

    Marobella plans to transform its consumer product brands alongside monumental market shifts and will lead Republic’s 50-year vision to meet rising demand amid rapid expansion.

  • Russia Lifts Ban on Malawi Tobacco

    Russia Lifts Ban on Malawi Tobacco

    Photo: Taco Tuinstra

    Russia has lifted its ban on imports of tobacco and tobacco waste materials from Malawi, reports the AK&M Information Agency.

    In 2021, Russia’s Federal Service for Veterinary and Phytosanitary Supervision detected five instances of the tobacco pest Megaselia scalaris in tobacco shipments from Malawi.

    Malawian authorities reported that the multi-eating humpback fly is absent on the territory of the country and has never been found in places where tobacco is grown and in tobacco raw materials. They emphasized that Malawi applies strict control mechanisms for exported products that meet international standards. Each batch reportedly undergoes a fumigation procedure twice before shipment, after which the containers with the cargo are sealed and sent to the port of Mozambique where they undergo another stage of disinfection.

    Given that the humpback fly prefers a humid climate, which is not typical for Malawi, as well as the fact that the import of tobacco raw materials from neighboring countries is prohibited, representatives of the Malawian departments suggested that the contamination of goods could have occurred during loading or transportation.

    Nonetheless, Malawian authorities vowed to strengthen control of tobacco exports, prompting Russia to lift its embargo.

  • Zimbabwe: Farmers Start Registering for Next Season

    Zimbabwe: Farmers Start Registering for Next Season

    Photo: Taco Tuinstra

    More than 14,000 farmers have already registered to grow tobacco in Zimbabwe next year, reports The Herald, citing statistics from the Tobacco Industry and Marketing Board.

    Of these, 7,537 are communal farmers, 4,871 A1 farmers, 817 small-scale farmers and 880 A2 farmers.

    Mashonaland Central has the highest number with 5,744 registered farmers, followed by Mashonaland West with 5,307, Mashonaland East with 1,707, Manicaland with 1,303, Midlands with 31, and Masvingo with 13.

    The sector is expecting the volumes to surpass the 200 million kg target in the next tobacco marketing season.

    Zimbabwe sold 186.6 million kg of leaf tobacco valued at $515.9 million during the 2021 marketing season. The figures are up 16.8 percent in volume and 31 percent in value over the 2020 sales.

  • Japan Council Slashes Leaf Cultivation

    Japan Council Slashes Leaf Cultivation

    Photo: Tobacco Reporter archive

    The Leaf Tobacco Deliberative Council, chaired by Yoshitsugu Minagawa, decided to reduce the total tobacco cultivation area based on a survey of each Japanese leaf tobacco growers’ willingness to cultivate for the 2022 leaf tobacco sales contract. The decision was based on the council’s approval of a proposal submitted by Japan Tobacco.

    In the Japanese domestic tobacco business, the total demand has continued to decline in recent years due to structural factors, such as the fall in adult population and the aging of society as well as tighter smoking-related regulations. In addition, there have been rapid changes in the market over the past few years, such as the expansion and intensifying competition of the heated-tobacco and the value segment cigarette categories.

    JT’s sales volume has continued to decline following the decline of total demand, despite efforts to strengthen the company’s top line through the growth of its heated-tobacco category and increasing the share of cigarettes.

    In light of these circumstances, JT made the proposal to reduce the total tobacco cultivation area with the aim to secure a balance of supply and demand over the mid-term and long-term and to rebuild a stable and sustainable structure to produce and procure domestic leaf tobacco.

    Specifically, JT will ask each Japanese leaf tobacco grower if they would like to cease tobacco cultivation. JT will summarize each grower’s intent on next year’s tobacco cultivation upon consultation and in cooperation with the growers’ unions. Based on the survey results, JT will then submit its proposal on tobacco cultivation areas and leaf prices for 2022 to the next Leaf Tobacco Deliberative Council scheduled for autumn.

  • Russia Lifts Embargo on Leaf Imports

    Russia Lifts Embargo on Leaf Imports

    Photo: Tobacco Reporter archive

    Russia has lifted restrictions on the import of tobacco leaf from Brazil, India, South Africa, Tanzania and Malawi, reports The Rio Times.

    The restrictions were implemented after the presence of humpback flies in shipments were discovered. In particular, it was found in raw materials from Brazil five times last year and seven times since the beginning of this year.

    The decision was made after a report from the National Plant Protection Organization of Brazil stated adoption of “comprehensive phytosanitary measures” for the resumption of tobacco leaf supplies to Russia.

  • Russia Bans Brazilian Leaf Over Pest Concerns

    Russia Bans Brazilian Leaf Over Pest Concerns

    Photo: Tobacco Reporter archive

    Russia has banned tobacco imports from Brazil and four other countries as of Monday, July 19, reports Datamar News, citing authorities’ concerns about infestation.

    The announcement was made on July 15 by the Russian federal service for veterinary and phytosanitary surveillance, which cited concerns about the phytosanitary status of tobacco from various countries destined for the Russian Federation and the systematic violation of the phytosanitary requirements of the Eurasian Economic Union (EAEU).

    To date this year, Russian inspectors have detected the Megaselia scalaris fly in 28 tobacco shipments, according to a statement published on the website of the Russian Trade Representative in Brazil. Megaselia scalaris is considered a quarantine pest throughout the EAEU.

    Brazil’s Ministry of Agriculture said it had not been officially informed about the decision. According to data from the ministry, Brazil exported almost 20,000 tons of leaf tobacco and related products valued at $43.7 million to Russia in 2020.

    The ban comes at a bad time for Brazil’s leaf merchants, many of whom are in the shipping stage of the tobacco season and have been forced to postpone shipments to a major market. 

  • Zimbabwe: Leaf Sales Up by a Third in 2021

    Zimbabwe: Leaf Sales Up by a Third in 2021

    Photo: Taco Tuinstra

    Zimbabwe sold 186.6 million kg of leaf tobacco valued at $515.9 million during the 2021 marketing season, reports All Africa, citing data from the Tobacco Industry Marketing Board (TIMB). The figures are up 16.8 percent in volume and 31 percent in value over the 2020 sales.

    The TIMB noted that contract farming was the dominant supplier of tobacco, accounting for 93.4 percent of total sales compared to 6.6 percent for sales on auction floors. Average leaf prices ranged between $2.47 and $2.82 per kg.

    After gold, tobacco is Zimbabwe’s biggest foreign currency earner with expected earnings to increase from last year’s $452 million to $800 million. “The tobacco’s potential is immense,” said Agriculture Minister Anxious Masuka, who wants to increase tobacco leaf production over the next four years. “It is in this regard that the government, together with stakeholders in the industry, is at an advanced stage of developing a three-pronged strategy. First, to increase annual production to 300 million kg largely from small holder farmers by 2025.”

    Industry analysts, however, have criticized Zimbabwe’s plans for not outlining a value addition strategy arguing that improving general output will not yield much benefit. By only exporting raw tobacco leaf, Zimbabwe could be losing out on at least $5 billion annually.