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  • A Mixed Bag

    A Mixed Bag

    Image: Taco Tuinstra

    Growers continue to struggle with rising production cost, but demand for tobacco remains firm.

    By Stefanie Rossel

    Ivan Genov

    Challenges abound for the global leaf sector, but there are also opportunities for tobacco farmers, Ivan Genov, manager of tobacco industry analysis at the International Tobacco Growers Association (ITGA), told participants in the organization’s recent regional meeting in Salta, Argentina.

    The ITGA recently completed a survey among growers and other stakeholders. “The rising cost of production was consistently put as the primary economic concern in the Americas, Africa, Asia, Europe as well as the Middle East regions,” Genov told Tobacco Reporter. “This dynamic is accelerating and has been particularly worrying in the last two to three marketing seasons. The situation is made worse by other underlying factors, including inflation, price rises of key commodities and growing international tensions, making even more challenging the navigation in global supply chains. All these factors contribute to bringing up the general costs of living and create a natural obstacle in tobacco production.”

    In Brazil, for example, the cost of production increased by more than 30 percent on an annual basis; in Zimbabwe, it was more than 20 percent. In most of the leading tobacco producing and exporting countries, the cost of production has been growing at double-digit figures, according to Genov.

    In addition, Russia’s invasion of Ukraine has impacted the availability and pricing of fertilizers. “The war in Ukraine, along with the massive humanitarian disaster, is also highly problematic in the wider agricultural aspect,” said Genov. “A lot of African and lower income markets are highly dependent on agrifood commodities imported from Russia and Ukraine; wheat was highlighted by the United Nations in the beginning of the conflict. The war has created a shortage of fertilizers as well as a spike in pricing as alternative production routes have to be exploited—often much farther away. This adds to the rising costs of production.”

    Worsening U.S.-China relations, meanwhile, could result in more trade barriers for leaf tobacco and other commodities. Inflation pressures, meanwhile, have added to the general expectation of a prolonged period of crisis. There is consensus that cigarette consumption has peaked and is now declining in line with tobacco in the long term. Novel alternatives such as heated-tobacco products contain less tobacco per stick than traditional cigarettes, whereas e-cigarettes require no tobacco at all. The EU Supply Chain Due Diligence Act will bring about more requirements in each step of the production process.

    All tobacco origins suffered from significantly increased cost of production. | Photo: Tobacco Reporter archive

    Resilient Farmers

    Despite these challenges, there are still opportunities for tobacco growers, the survey showed. Since late 2020, leaf has been in undersupply worldwide—an issue that is openly discussed by leaf merchants and international manufacturers. “Some of them have the lowest uncommitted inventories in their recent histories,” said Genov. “The case around burley is particularly relevant. For example, the 2022 crop in Malawi—one of the key markets for the variety—was very short. As a result, we believe it is natural to expect growth in pricing that goes above the cost of production increases [see “Back to Normal,” Tobacco Reporter, June 2023]. The alternative is to see further drops in the global tobacco growers base as cultivating the crop will become even more challenging. We have to remember that this happens on top of issues with generational continuation and the move away from rural areas by young people.”

    Stable producers who are well prepared for the underlying threats will enjoy demand for their products, according to Genov. “A lot of tobacco growers have been in the business for several generations,” he said. “A great number of them have a well-diversified land, stable channels and partners for their inputs and huge experience in planning. In the face of leaf shortage and high demand, this surely means quality production is very likely to be realized. Unfortunately, in some cases, diversification is not as easy. It is not only about time and financing but the opportunities of the market. In certain countries, tobacco is the best bet. Small-scale farmers are often left with the least support; they do not have the capacity and time to safeguard against all threats. This is why support from all stakeholders in the sector is essential. Small-scale farmers must not be treated as suppliers of low-price production only.”

    Most tobacco farmers are exceptionally resilient, Genov stated. “They have worked in a regulations-heavy environment for decades. Nevertheless, it is still essential to receive support and real understanding from local and international authorities and to be included in the conversations that decide their futures. In addition, tobacco growers’ needs are often not dissimilar to those farmers caring about other field crops.”

    Support Needed

    According to Genov, one way to assist growers is through diversification efforts, especially in the markets that are heavily dependent on tobacco. Unfortunately, he said, the World Health Organization’s Framework Convention on Tobacco Control (FCTC) Article 17, which urges member states to find viable alternatives for tobacco growers, has delivered few tangible results on this front. ITGA has put Article 17 at the center of its efforts in 2023 to ensure that the issue is taken seriously during the Conference of the Parties to the FCTC in Panama later this year. The organization urges stakeholders to remember that the livelihoods of millions of people depend on tobacco growers.

    Tobacco growing countries will also need assistance with issues such as deforestation, which has been a big problem, especially in Africa. “Finding and financing alternative fuel sources that are more environmentally sustainable is critical,” said Genov. “There are some projects being run in this area. Last November, ITGA organized an awareness bringing campaign about deforestation in three of the leading tobacco growing regions in Zimbabwe. We are pressing ahead with expanding the project to other regions by the end of the year.”

    One of the areas that should be prioritized is water management, according to the results of the ITGA’s survey. “For example, in Brazil, one of the key international leaf markets, there is low water storage capacity,” said Genov. “Water conservation is going to climb on the agenda in the years to come. If we include the urgent social issues that are often faced by tobacco growers, like poverty, lack of opportunity for the youth, child labor and inadequate healthcare, we can see that the sector still needs a lot of attention.”

    Increasingly, tobacco growers have to cope with the consequences of climate change, which makes it harder to plan agricultural activities. “This makes services like insurance and the importance of forward planning even more significant,” Genov stressed. While weather variations can always be expected, there were some abnormal events in the last few seasons: “In 2022, Malawi was hit by Cyclones Gombe and Anna while Cyclone Mandous affected the crop in Andhra Pradesh in India. In the Americas, certain origins, like in the Dominican Republic, report changes in the traditional rainy season while in Europe, there were periods of prolonged drought. In Cuba, arguably the most striking example, Hurricane Ian obliterated the crop used to produce premium cigars.”

    Cost of Production

    In his presentation, Genov also reviewed global leaf production, citing data from Universal Leaf. Driven by increases in the U.S., Brazil and Zimbabwe, flue-cured Virginia (FCV) rebounded slightly, to 1.73 billion kg, in 2021. In 2022, the FCV crop excluding China was again short, down to 1.64 billion kg. Brazil’s season, for instance, finished last year with 60 million kg less than in 2021. For 2023, leading markets are expected to increase production, which could lead to increased supply at the global level, Genov said.

    In Zimbabwe, production fell by 3 percent in 2022 to just over 200 million kg but was still higher than expected due to drought and the late rains improving the crop. The cost of production rose faster than tobacco prices, however, and is likely to continue increasing next year. “Farmers’ viability over the last two years has been significantly reduced,” said Genov. “In future, pricing will remain a crucial element in seeing which farmers stick with tobacco and which will move entirely to other crops. It is interesting to note here that Zimbabwe’s government has an ambitious target to stimulate production to 300 million kg by 2025 [see Tobacco Reporter’s special report on the Tobacco Value Chain Transformation Plan in May 2023]. Given the current progress of the market, this seems highly unlikely.”

    In the U.S., production cost put severe pressure on growers who are increasingly turning to other commodities. “Labor, energy and fertilizer cost will flag this particularly,” said Genov. “2022 has been said to be the most expensive crop to be grown in U.S. history.” For 2023, U.S. producers expect increasing demand with no relief in cost of production, Genov said, and it appears that China is back on the market.

    In China, meanwhile, tobacco production has been growing exponentially. The FCV crop reached an estimated 1.91 billion kg in 2022 and is expected to increase to 2 billion kg this year. Tobacco imports overcame their Covid-related drop of 2020 in 2021, according to Genov, who expects demand to remain strong based on local consumption patterns.

    Burley production decreased from 407 million kg in 2021 to 360 million kg in 2022. The crop is anticipated to bounce back to 460 million kg in 2023.

    Oriental production dropped from 154 million kg in 2020 to 119 million kg in 2021 and stagnated in 2022 at 117 million kg. Production of dark air-cured slightly increased from 108 million kg in 2021 to 113 million kg one year on. For the two latter crops, there is no estimate for 2023 yet.

    Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.
  • Best Practices

    Best Practices

    Photo: doidam10

    How to approach environmental assessments for the best chance of success

    By Adam Bonin and Antony Jones

    An Environmental Assessment (EA) is an analysis prepared in accordance with the U.S. National Environmental Policy Act (NEPA) to determine if a product’s approval would significantly affect the environment. It applies to all federal actions in the U.S., including regulations, policies, projects, licensing and permission granting. The assessments give insights into potential risks associated with a product’s manufacture, use and disposal and help manufacturers develop effective mitigation strategies to reduce or avoid possible environmental consequences.

    EAs therefore help regulatory agencies identify potential adverse environmental impacts from the manufacture, use and disposal of electronic nicotine-delivery systems and oral nicotine products. They are a small yet important part of premarket tobacco product applications (PMTAs) and modified-risk tobacco product submissions. The U.S. Food and Drug Administration requires manufacturers to submit EAs for each individual tobacco product, or stock-keeping unit, within a PMTA.

    An inadequate or absent EA will result in either a “refuse-to-accept” or a “refuse-to-file” order from the FDA. In 2021, the FDA rejected 4.5 million vaping applications on the grounds that they “lacked an adequate environmental assessment.” With companies spending millions on PMTA submissions, they cannot afford to miss out on approval due to such a small part of the process. So, what does a good EA look like?

    What to Include in an Environmental Assessment

    In general, an EA includes an executive summary, applicant details, description of the proposed action and purpose and need of the proposed action. Further EA sections include the identification of alternatives, including the proposed action and no action alternative, potential environmental impacts of the alternatives (affected environment [or existing conditions] and environmental impacts), cumulative impacts and mitigation measures. An EA is appropriate for submission if it is determined that the impacts of the proposal will not be significant or the FDA concludes a finding of no significant impact. Mitigation measures may be recommended if impacts are anticipated, to reduce them below the significance threshold.

    The initial stage of the EA process is building a well-defined project description, covering the purpose and need for the regulatory decision (marketing granted order) that triggers the requirement for an EA under the NEPA. The applicant will also need to include details of product components, product formulation (where applicable) and predicted sales projections for the first and fifth years. It is particularly important to include the mass of individual metals in product hardware components (e.g., devices, pods) to assess potential impacts at the end of life.

    A good EA includes a thorough screening and comprehensive modeling of product components (e.g., e-liquid ingredients), with all conclusions and results backed up with hard data. The evaluation of the potential release of materials to the environment should be quantitively assessed, with the resulting potential concentrations in the environment explicitly stated and compared with relevant ecotoxicity standards to determine the possible impact.

    Throughout, it is important to appropriately manage confidential information. EAs include both confidential and nonconfidential appendices, and it is important that these are prepared correctly. For example, if there is proprietary information in the e-liquid formulation, this would be best listed in the confidential appendices, as would sales and marketing projections. It can be difficult to know which information is appropriate for inclusion in the confidential apprentices, and working with an experienced team offers the best chance of success.

    Determining the Possible Impacts

    E-liquids typically consist of a mixture of ingredients, including propylene glycol, vegetable glycerin and nicotine. The formulation can be screened using a predictive tool to determine which ingredients are of most ecotoxicological concern and should be carried forward into the analysis. The selected ingredients can be assessed for estimated acute and chronic aquatic toxicity for aquatic organisms, including plants, fish and invertebrates, and then be assessed in subsequent fate and transport modeling.

    The EA should analyze the plausible scenarios for the impact of the identified substances being released into the environment, including quantitative release modeling. For example, this could include the possible impact of the material being released into surface water or soils at quantities considered reasonable based on predicted sales data.

    The project supply chain should also be documented, including details of manufacturing and shipping to retail entities. The environmental and social resources around U.S. manufacturing facilities require characterization to provide an understanding of the affected environment (existing or baseline conditions). The potential impacts of projects can then be evaluated based on changes to the baseline conditions—for example, if chemical mixtures or raw ingredients are accidentally released into surface water or chemicals are released down the drain during manufacturing.

    It is important that the EA is realistic. In our experience, the inclusion of conservative analyses appears to be the soundest approach. It may be tempting to conduct modeling for a wide variety of release scenarios, but if they are deemed unlikely by the FDA, you may receive a deficiency for evaluating unreasonable scenarios.

    Tips and Tricks

    • Start early. Considering the EA process early in the application can improve efficiencies, particularly for characterizing natural resources around U.S.-based facilities and engaging with manufacturers and other vendors to understand product supply chains.
    • Use a robust standard operating procedure. In an EA, it is vital that every section includes explicit information that satisfactorily evaluates the product against FDA requirements.
    • Choose an experienced team. Many businesses do not have employees with sufficient NEPA experience; in this case, we recommend working with a consultancy. NEPA-specific jargon and other regulatory nuances can be challenging for new practitioners.
    • Stay up to date. Attending FDA and NEPA meetings can be a great way to stay up to date with any changes in the guidance. In addition, manufacturers can engage directly with an FDA project manager if they receive deficiency comments.
    Adam Bonin is a senior consultant at Broughton with over 22 years of scientific consulting experience. He earned a Bachelor of Science degree in environmental management from the University of Rhode Island and a doctorate in environmental microbiology from Portland State University. Bonin also completed a postdoctoral appointment in microbial ecology at Oregon Health and Science University.
    Antony Jones is a managing consultant at Broughton with more than 22 years of experience in risk assessment with a focus on characterizing and reducing risks across the pharmaceutical, biotechnology, food, nicotine and environmental industries. He earned a Bachelor of Science degree in biology from the University of York and a doctorate in molecular biology and microbiology from Newcastle University. Jones also completed a postdoctoral appointment at King’s College London.

    Broughton is a global scientific consultancy-based Contract Research Organization serving industries in pharmaceuticals, next-generation nicotine-delivery products and cannabinoids. Its team has developed a robust and proven approach for preparing defensible NEPA-compliant EAs for the FDA PMTA. For more information, visit www.broughton-group.com/us-pmta-and-mrtp-nepa-environmental-assessments-ea.

  • KT&G Receives AAA Credit Rating

    KT&G Receives AAA Credit Rating

    Image: Tobacco Reporter archive

    KT&G has obtained the highest grade of AAA in all three major domestic corporate credit ratings: Korea Ratings, Korea Credit Rating and NICE Credit Rating.

    Among domestic private companies excluding financial and telecommunications companies, KT&G is the only company to achieve a corporate credit rating of AAA.

    The corporate credit rating agencies have assessed KT&G’s business stability as extremely excellent based on its high market position in key business sectors. The agencies have given high evaluations to the company’s solid domestic market dominance, built on its long history, high brand recognition as well as its strong presence in the global tobacco and e-cigarette industries.

    Furthermore, with plans for dividend payments, share buybacks and investments aimed at shareholder returns and expanding domestic and international production facilities, it is expected that KT&G will maintain excellent financial stability by ensuring smooth cash generation to meet funding requirements in the future.

    A KT&G representative stated, “Amid increased uncertainties in both domestic and international markets, such as recent interest rate hikes, many companies have faced challenging business environments. In this context, we believe that KT&G’s achievement of the highest AAA rating from the three credit rating agencies is a recognition of our company’s stability and profitability by external entities.” They further added, “We will continue to strive to maintain a stable financial structure based on our excellent creditworthiness and make every effort to ensure financial stability in the future.”

  • Hungarian Economy Hit by Illegal Trade

    Hungarian Economy Hit by Illegal Trade

    Image: Tobacco Reporter archive

    Half a billion illegal cigarettes were bought in Hungary in 2022, preventing the country from receiving HUF30 billion ($87.9 million) in excise tax revenue, KPMG data shows, according to Hungary Today.

    The illegal cigarette market in Hungary recorded a three percentage point increase in 2022 despite falling consumption. According to KPMG, the country’s share has reached 2019 levels mainly due to products made specifically for smuggling and due to counterfeit tobacco.

    Most of the illegal products come from Ukraine.

    Criminal organizations are making increasing profits by distributing illicit products in countries with higher prices and taxes, according to the study. The pandemic and the Russian-Ukrainian war are also noted as reasons why illicit trade has increased.

  • CTP Reports Progress on Reagan-Udall Review

    CTP Reports Progress on Reagan-Udall Review

    Image: Tobacco Reporter archive

    Brian King, director of U.S. Food and Drug Administration’s Center for Tobacco Products (CTP), published a statement summarizing the CTP’s progress in addressing the recommendations from the Reagan-Udall evaluation.

    At the request of FDA Commissioner Robert Califf, the Reagan-Udall Foundation evaluated the CTP’s operations. In December, the foundation submitted its report, which identified several problems hindering the agency’s ability to regulate the industry and reduce tobacco-related disease. Among other recommendations, the foundation urged the CTP to make process improvements and increase transparency.

    According to King, the CTP has made significant strides in putting its plans for improvement into action. The agency, he said, is on track to issue proposed goals this summer, and to release the final plan by December 2023. The CTP intends to hold a public meeting in summer 2023 to seek stakeholder feedback about the strategic plan.

    Meanwhile, said King, the CTP Ombuds Office is leading the creation of an operational strategy to improve transparency and information sharing across all programmatic areas, including through the establishment of transparency liaisons. Externally, the center is planning for upcoming public meetings to gather stakeholder input. CTP also published a webpage of all the tobacco products-related citizen petitions received by the center to provide the public with information about such citizen petitions that is easy to access and user-friendly.

    According to King, the center has reviewed 99 percent of tobacco product applications submitted over the past three years, authorizing 23 tobacco-flavored e-cigarette products and devices. The CTP is currently planning a public meeting to take place in fall 2023 regarding the application review process.

    Meanwhile, the center is in the process of finalizing rules related to menthol cigarettes and flavored cigars and continues to work toward publishing a proposed rule that would establish a maximum nicotine level to reduce the addictiveness of cigarettes and certain other combusted tobacco products.

    CTP also recently proposed new requirements for tobacco product manufacturers regarding the manufacture, design, packing and storage of their products.

    King also highlighted the CTP Office of Science leadership’s participation in conferences and external meetings. For example, representatives from the Office of Science recently presented at the Food and Drug Law Institute’s Nicotine Product Regulatory Science Symposium, the E-Cigarette Summit and the TMA annual meeting (see Todd Cecil’s TMA presentation here).

    “I am proud of the significant progress the center has made to date in addressing the external evaluation recommendations, and I am confident that we’ll continue to make important strides in continuing to build and strengthen FDA’s tobacco program in the future,” said King.

    A comprehensive list of CTP status updates for each Reagan-Udall Foundation recommendation is available here.

  • New Deadline for South Africa Vape Comments

    New Deadline for South Africa Vape Comments

    Image: Tobacco Reporter archive

    The public consultation on South Africa’s new Tobacco Products and Electronic Delivery Systems Control Bill will end on July 28, the Portfolio Committee on Health announced.

    In a media statement from Parliament, the government said that written submissions on the bill must be emailed to tobaccobill@parliament.gov.za or submitted online at https://forms.gle/FLrhnvThDk8ccLG97.

    The submission period was originally between June 21, 2023, and Aug. 4, 2023.

    The bill aims to regulate not only traditional tobacco smoking but also electronic cigarettes, such as vapes, which have become immensely popular not only as a means to stop smoking normal cigarettes but as a gateway into nicotine consumption.

    In broad terms, the bill aims to regulate the sale and advertising of both tobacco products and electronic delivery devices, reports Business Tech.

    According to Parliament “the bill will also focus on legislating electronic nicotine and electronic non-nicotine delivery systems; introduce plain packaging with graphic health warnings and pictorials; introduce a total ban on display at the point of sale; introduce 100 percent smoke-free areas—indoor public places and certain outdoor areas; and a total ban on vending machines for tobacco products.

    At the start of the month, the Portfolio on Health briefed Parliament on the new bill with mixed reactions. Many stakeholders were concerned as to the severe knock-on effects the new bill could have on the tobacco/smoking industry, which is a key driver of economic growth in South Africa.

    Members of Parliament said that the bill could lead to more people turning to the already budding illicit tobacco industry and lead to job losses.

    Asanda Gcoyi, chief executive of the Vapour Products Association, said that combustible alternatives to traditional cigarettes should form the backbone of tobacco harm reduction in South Africa and be seen more as a solution to a problem rather than a new problem.

    She said that the government has managed to demonize vaping, marking it as more damaging than traditional cigarettes.

    Vapes are not only getting regulated by the new bill but are also being drawn into the ambit of excise taxes as provided in the updated Tobacco Product Excise.

    Barry Buchman, managing director of Vaperite, said that the newly imposed excise duty on vaping products has taken its toll on retailers, with many arguing that the tax has had the adverse effects of driving consumers toward the illicit market.

    Buchman added that the tax is pushing consumers to purchase the highest and most addictive nicotine content e-liquid as it is a cheaper option, negating the original aim of the National Treasury to tackle health-related issues.

  • New Zealand Urged to Reject Australia’s Model

    New Zealand Urged to Reject Australia’s Model

    Photo: REDMASON/indysystem

    The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) is calling on the New Zealand government to reject Australia’s approach to vaping and continue to follow the science and evidence. 

    CAPHRA has submitted comments on New Zealand’s proposals for the smoked tobacco regulatory regime, which include tightening current restrictions on vaping product safety requirements and packaging and reducing nicotine levels in disposable vapes as well as restricting the location of specialist vape retailers.

    “CAPHRA believes that the regulations, as they are, work perfectly well, and that further restrictions will only serve to limit access to safer nicotine products for adult smokers seeking less harmful alternatives to combustible tobacco,” says CAPHRA executive coordinator and prominent New Zealand public health consumer advocate Nancy Loucas.

    “The announcement that New Zealand would not follow Australia’s lead to a full prescription model for nicotine vaping further reinforces the need for a harm reduction approach that is based on science and evidence, not scaremongering by crowing Australians.”

    CAPHRA believes that the regulations, as they are, work perfectly well, and that further restrictions will only serve to limit access to safer nicotine products for adult smokers seeking less harmful alternatives to combustible tobacco.

    Nancy Loucas, executive coordinator, CAPHRA

    In a press note announcing its submission to New Zealand’s proposals, CAPHRA cites an article in The Critic, “The Vape Scare Down Under,” which describes the Australian government’s approach to vaping is misguided and based on fear rather than evidence. The article argues that the government’s proposed ban on flavored e-cigarettes is not supported by the evidence and will only serve to drive vapers back to smoking. The article also highlights the success of vaping in reducing smoking rates in countries like the U.K. and New Zealand.

    “Unfortunately, the vaping debate has become highly political instead of being about the science or the evidence which continues to show that vaping is reducing smoking rates around the world,” says Loucas.

    CAPHRA continues to urge the New Zealand government to take a risk-proportionate approach to regulations that protect public health while ensuring the availability of these products for adult smokers seeking less harmful alternatives to combustible tobacco.

    “New Zealand should not follow Australia’s policy on vaping, and instead continue to follow a harm reduction approach that is based on science and evidence. Harm reduction should be the driving force behind tobacco policy, and regulations should be risk-proportionate and protect public health while ensuring the availability of these products for adult smokers seeking less harmful alternatives to combustible tobacco,” Loucas said.

  • Tobacco Production Up in Tanzania

    Tobacco Production Up in Tanzania

    Photo: Taco Tuinstra

    Tanzania produced 125 million kg in 2023, up from 60 million kg in 2022, reports the Xinhua News Agency

    Addressing the fifth general meeting of the Tobacco Cooperative Joint Enterprise in the Morogoro region, Stanley Mnozya, the director general of the Tanzania Tobacco Board, said his organization has taken measures to increase the production of the crop to 231 million kg in 2024.

    The increase is in line with the objectives of Tanzania’s ruling party, Chama Cha Mapinduzi, which wants the country to produce 250 million kg of tobacco by 2025.

    Mnozya attributed this year’s increase in tobacco production to the emergence of new buyers on the markets. There are now 11 companies purchasing tobacco in Tanzania.

    TCJE Chair Ntezilyo John said Tanzania tobacco cultivation is facing a number of challenges, including delayed payments and a lack of subsidized fertilizers.

  • Zimbabwe Sales Surpass $800 Million

    Zimbabwe Sales Surpass $800 Million

    Photo: Taco Tuinstra

    Since auction and contract floors opened in March, Zimbabwe has sold more than 270 million kg of tobacco worth $817 million, reports The Herald.

    The target this year was 230 million kg compared to last year’s 212 million kg.

    Tobacco Industry and Marketing Board (TIMB) data shows that this year’s sales have increased 52 percent from 2022 sales of 177 million kg during the same period.

    The highest price at the contract floors was $6.10 per kilogram while the highest price at the auction floors was $4.99 per kilogram.  

    “The prices are hovering around $3.02 per kilogram, and we hope they will improve as the marketing season progresses. If the prices continue like this, we will manage to go back to the field again,” said Marjory Munengerwa of Rusape.

    So far, farmers have been happy with the marketing season and the fast, fair payments. TIMB has been working to create a marketing season without side marketing.

    Zimbabwe generates $1 billion annually from tobacco exports to over 60 countries around the world, among them China, Japan, the United Arab Emirates, Indonesia, Belgium, the United Kingdom, the United States, Brazil, South Africa, Botswana, Malawi, Egypt, Tanzania, Zambia, Mozambique and Lesotho.

     A new target of 300 million kg per year has been set with plans to transform the sector into a $5 billion industry by 2025.

  • FDA Urged to Reconsider Menthol Ban

    FDA Urged to Reconsider Menthol Ban

    Image: Tobacco Reporter archive

    Twenty U.S. representatives are urging the Food and Drug Administration to reconsider the proposed ban on menthol cigarettes and flavored cigars, reports CSP. The ban would exacerbate existing illicit trade of tobacco products, according to a letter sent to FDA Commissioner Robert Califf.

    A final rule is set to be published in August but would not go into effect until at least next year.

    “When Congress enacted the Tobacco Control Act in 2009, the intent was for the FDA to use regulation to ensure proper oversight of the tobacco industry. When prohibition-based actions result in large illicit markets, it causes more risk for Americans, more crime, more burden on law enforcement and more opportunities for policy and community conflict,” the letter said. “We urge FDA to take illicit markets seriously. The FDA can do this by using regulation to safely meet adult consumer demand while also establishing controls on how those products are marketed to protect kids. We urge you to reconsider FDA’s proposed rules on menthol cigarettes and flavored cigars and refrain from any further prohibition-based actions that threaten to expand illicit markets.”

    The proposed ban would result in about one-third of all cigarettes sold in the U.S. becoming illegal, according to the letter, highlighting concern that the ban would lead to a similar illicit market to vapor products.

    “With this prohibition-based approach, we now see thriving illicit e-vapor markets all over the U.S.,” the letter stated, pointing to states that have enacted flavor bans. “These markets include illegal products with some of the highest incidence of underage use; products made in Chinese manufacturing facilities with no FDA oversight; products being illegally smuggled over U.S. borders and through U.S. ports; products being trafficked in violation of state and local criminal laws; and products being sold without age verification.”

    The letter was signed by U.S. Representatives John Rutherford, Don Bacon, David Valadao, Ben Cline, C. Scott Franklin, Troy Nehls, Richard Hudson, John Rose, Jerry Carl, Eric “Rick” Crawford, Daniel Meuser, Andrew Garbarino, Debbie Lesko, Byron Donalds, Mike Ezell, David Rouzer, Anthony D’Esposito, Kat Cammack, Diana Harshbarger and Jeff Duncan.