Tag: exports

  • Zimbabwe Tobacco Export Earnings Up

    Zimbabwe Tobacco Export Earnings Up

    Image: Tobacco Reporter archive

    Zimbabwe has recorded a 26 percent increase in export earnings from tobacco products, according to The Herald.

    Export earnings were USD603 million in the January 2023 to August 2023 period, up from USD477 million in the same 2022 period, following the operationalization of the Tobacco Value Chain Transformation Plan (TVCT).

    Zimbabwe exports partly or whole stemmed/stripped tobacco or not stemmed/stripped tobacco, tobacco refuse, cigars, cheroots and cigarillos containing tobacco, cigarettes and manufactured tobacco.

    Volume increased 13 percent, and the average price increased 12 percent.

    Of the exported product, 71 percent was partly or wholly stemmed/stripped tobacco, and 19 percent was tobacco refuse, the same trend from 2022.

    “There has been a significant increase in shipments to the Far East as shipping constraints have eased,” said Rodney Ambrose, CEO of the Zimbabwe Tobacco Association. “Also, a higher value crop has been exported to select destinations. Unfortunately, the same growth cannot be said of growers’ earnings. The future of the tobacco sector remains positive, provided we can address issues around growers’ viability and sustainability.”

    “Credit must be given to farmers who continue to grow the crop even if they are breaking even or making a loss with the hope that one day, they will make a profit,” said George Seremwe, chairman of the Zimbabwe Tobacco Growers Association. “Contractors also should be thanked for rendering support to farmers. However, the Tobacco Industry and Marketing Board (TIMB) must work on reducing or eliminating the participation and licensing of surrogates (middlemen) who are putting huge markups on their services to the detriment of farmers.”

    Farmer profitability can only be enhanced if all stakeholders work to reduce production cost with the TIMB enforcing contract pricing and monitoring the delivery of adequate inputs to farmers on time, according to Seremwe.

    The government and tobacco stakeholders came up with the TVCT with the aim of creating a USD5 billion industry by 2023.

    Export of tobacco products has been on an upward trend, with earnings of USD795 million in 2020, USD837 million in 2021 and USD998 million last year. By the end of this year, earnings are expected to exceed USD1 billion.

  • Philip Morris Korea to increase exports

    Philip Morris International Korea (PMIK) will increase its cigarette exports to an expected 20 billion sticks this year after securing larger markets in Japan and Australia.

    The company will expand its export of cigarettes manufactured in its factory in Yangsan, South Gyeongsang Province, in an effort to make up for domestic losses caused by a tobacco tax hike that went into effect on Jan. 1. The bill—which increased tobacco prices to won4,500 per pack from the average won2,500 per pack—resulted in significant decreases in sales for tobacco makers operating in the country. PMIK’s sales dropped by approximately 18 percent in the first quarter of 2015 compared to the first quarter of 2014.

    In 2012, the company invested approximately won200 billion into the Yangsan factory to expand its packaging facilities and add raw material processing facilities. Today, the factory has the ability to produce 40 billion cigarettes per year, double its prior manufacturing capacity.

    “Since 2012, our exports grew more than 10 times, thanks to the increased capacity in Yangsan factory, as well as the growing quality,” said Mikhail Prokopchuk, PMIK’s director of operations.

    Exports from the Yangsan factory to Japan, Australia, Singapore, Taiwan, Hong Kong and Macua have increased dramatically since manufacturing capabilities were expanded, with export volumes increasing from 900 million cigarettes in 2012 to 4.5 billion cigarettes in 2014.

  • Zimbabwe’s tobacco exports earn $200 million

    Zimbabwe has earned $211.9 million from tobacco sales thus far this year. China continues to be the leading importer after buying 19.3 million kg worth $166.7 million since the beginning of the marketing season. Zimbabwe exports Virginia tobacco to more than 50 countries on all but two continents.

    South Africa ranks as the second-biggest importer of the golden leaf, after buying 3.5 million for $13.5 million at $3.77, according to the Tobacco Industry and Marketing Board. Mauritius, which bought 1.3 million kg worth $5.4 million at $4 per kg, ranks as the third-highest importer. Other top importers include Russia and the United Arab Emirates. Zimbabwe produced 216.2 million kg of Virginia tobacco in 2014.

  • Tobacco among top Russian exports

    Tobacco factories feature prominently on a list of leading Russian exporters recently published by Expert Severo-Zapad.

    According to the business magazine, British American Tobacco in St. Petersburg leads the pack with export revenues of $91.9 million last year. Philip Morris Izhora exported tobacco products worth $70.9 million in 2012, up 15.1 percent from the previous. JTI’s Petro factory came next with exports worth $57.2 million, up 20.7 percent from 2011. JTI’s Kres Neva tobacco processing plant saw its export declining 56.6 percent to $14 million.