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Tag: Malawi

  • Malawi Government Urged to Take Over Tobacco Diversification Agenda 

    Malawi Government Urged to Take Over Tobacco Diversification Agenda 

    A report by the Sustainable Development Initiative (SDI) in Malawi said the nation’s agricultural diversification programs are not yielding the desired results, with farmers struggling to access markets for alternative crops. Maynard Nyirenda, executive director of the SDI, said his organization understands that weaning Malawi off its reliance on tobacco will be a long and challenging process, given the crop’s entrenched history in the country dating back to colonial times, however he emphasized the need for a gradual transition to alternative crops.

    The SDI said that after decades of practice, the current tobacco diversification agenda hasn’t yielded economic prosperity, and that the tobacco industry’s diversification programs are driven by the industry itself, creating a conflict of interest. He emphasized the need for a farmer-centered approach, stating that the Malawi government should provide direct market access, technology, and infrastructure for alternative crops such as soya beans, sunflowers, and groundnuts.

    “We are saying, let the government own this particular diversification agenda so that the other crops are also given enough support that the tobacco industry has received,” Nyirenda said. “If you can support the same soya beans and whatever alternatives, give it a lot of support as we have been doing on tobacco, it will be sold outside, it will be exported. We will still be getting the same U.S. dollars.”

  • Malawi Tobacco Earnings up Despite Drought

    Malawi Tobacco Earnings up Despite Drought

    Photo: Taco Tuinstra

    Malawi earned 40 percent more from tobacco sales in the 2024 marketing season than it did the previous year, despite an El Nino-induced drought, reports Reuters, citing the Tobacco Commission.

    The Tobacco Commission said that leaf sales increased to $396.28 million, up from $283.76 million the previous season. Over the same period, volumes increased to 133.1 million kg from 120.5 million kg.

    “This represents a substantial surge,” the Tobacco Commission wrote in its final season report. “The increase in sales volume, revenue and the average price per kilogram indicates a strong and positive performance compared to the previous year.”

    Despite the drought, which hit most of Malawi’s agricultural output, especially the staple food maize, the tobacco crop proved resilient, helping the country to profit from a surge in global demand.

    “Global demand is high due to consecutive calamitous weather impacts in major producing countries,” said Limbani Kakhome, a spokesperson for Japan Tobacco Leaf, one of the commodity’s top buying companies in Malawi.

  • Malawi Earnings Up

    Malawi Earnings Up

    Photo: Taco Tuinstra

    Malawi has earned $295.31 million from tobacco sales to date, 40 percent more than it collected during the 2023 selling season, reports The Nyasa Times. The country sold $132.8 million kg of tobacco at an average price of $2.95.

    Despite the improved earnings, the income is enough to keep the southern African nation’s economy running for just over 1.5 months, according to analysts. Malawi has long struggled with a balance-of-payment crisis.

    TAMA Farmers Trust President Abiel Kalima Banda described this year’s tobacco selling season as successful, noting that auction prices had increased for the first time in up to six years. The extra income, he suggested, would motivate farmers to stick with the crop.

    The Tobacco Commission has licensed 60.2 million kg of leaf for the next growing season, almost triple the volumes licensed at the same time last year.

    The regulator aims to increase annual tobacco production to 200 million kg by 2028, noting that demand for Malawi’s burley tobacco has in recent years outstripped supply.

    Not all stakeholders are keen for Malawi to increase tobacco production, however. In late 2023, the nation ratified the World Health Organization Framework Convention on Tobacco Control, which among other things encourages signatories to replace tobacco with alternative crops.

    Malawi’s economy relies heavily on tobacco exports. Various initiatives are underway to diversify the nation’s economy, including projects sponsored by tobacco companies trying to develop supplemental income streams as global demand for cigarettes stagnates.

  • Delayed Payments for Malawi Growers

    Delayed Payments for Malawi Growers

    Photo: Taco Tuinstra

    Malawi tobacco growers have been complaining about tardy payments, with some receiving the proceeds of their leaf sales up to a week late, reports The Nyasa Times.

    “We are expecting the Tobacco Commission [TC], as the regulator, to come out with measures to eradicate this problem,” said TAMA Trust Vice President Rhodes Sulumba.

    TC spokesperson Telephorus Chigwenembe said the problem was limited to isolated cases. “However, we will find out the extent of the problem and the bottlenecks are,” he was quoted as saying.

    Malawi has earned $327 million from tobacco sales since the start of this year’s marketing season, up from $282.62 million from the same period last year.

    After 11 weeks of sales, growers have sold 112 million kg of all tobacco types, according to AHL Tobacco Sales. During the comparable period of 2023, the figure was 94.3 million kg.

  • Malawi Prices Up a Quarter Over Last Year

    Malawi Prices Up a Quarter Over Last Year

    Photo: Taco Tuinstra

    Malawi tobacco growers have sold 64.7 million kg of tobacco for $182 million in the seven weeks since the marketing season opened, reports The Nyasa Times.

    Tobacco Commission spokesperson Telephorus Chingwenembe said the average price, at $2.81 per kg, was 26 percent above that fetched during the same period during last year’s selling season.

    “We are happy to note that the progress of the selling season underway has triggered people’s interest to grow the crop,” he was quoted as saying. “This aligns very well with our goal to increase our annual production to 200 million kg by 2028 because in the recent years, we have been failing to meet the trade demand. The demand is higher than what we are currently producing.”

    Chingwenembe also praised the high quality of leaf being brought to the sales floors.

  • Tobacco Earnings Jump

    Tobacco Earnings Jump

    Photo: Taco Tuinstra

    Malawi earned $81.2 million from tobacco sales in the four weeks that ended May 10—83.3 percent more than in the same period last year, reports Xinhua.

    The Tobacco Commission estimates that tobacco growers will bring 140 million kg to market this year, representing a 17 percent increase over last year’s production of around 125 million kilograms. The regulator said that 30 million kilograms have been sold since the markets opened in April, a 47.5 percent increase over the same period last year.

    “The seasonal average price has also increased by 28 percent to an average of 2.7 dollars per kilogram, compared to 2.11 dollars per kilogram last year,” the commission said.

    Tobacco exports accounted for $389 million dollars of Malawi’s $1.1 billion exports in 2023, according to the country’s National Statistics Office.

  • Malawi Growers Urged to Tap into China

    Malawi Growers Urged to Tap into China

    Photo: Taco Tuinstra

    Malawi authorities are urging farmers to tap into the Chinese tobacco and soybeans markets, reports Xinhua.

    During the Agriculture Investment Conference on April 19 in Lilongwe, Alfred Mwenifumbo, controller of agriculture, extension and technical services, said sales to China would boost foreign exchange earnings and strengthen the economy.

    Dominated by smallholder growers, Malawi’s tobacco industry could benefit greatly from the Chinese market, Mwenifumbo said. He encouraged large-scale farmers to join the industry to improve the quality of Malawian tobacco and compete with other countries.

    Mwenifumbo suggested that Malawi could increase its forex earnings by up to 30 times if more commercial farmers with large landholdings entered the industry and accessed the Chinese market, noting that existing investors are ready to support local farmers in expanding their operations to seize market opportunities.

    The conference also discussed the investment potential in crops such as macadamia nuts, groundnuts, wheat and maize, highlighting their significant returns.

    Tobacco Reporter highlighted Malawi’s efforts to diverse its economy in its June 2023 issue (see “Broadening the Base”).

  • Malawi 2024 Volume Up 17 Percent

    Malawi 2024 Volume Up 17 Percent

    Photo: Taco Tuinstra

    Malawi will produce 17 percent more tobacco this year than it did in the 2023 growing season, reports Malawi24, citing a survey conducted by the Tobacco Commission (TC).  

    The TC projects production of 140 million kg this season. Last year, the country’s farmers sold 120 million kg.

    While the projections are up over those of last year, they are down from earlier estimates. The first crop survey conducted in January 2024 showed a 21 percent increase in 2024 tobacco production from that of 2023.

    TC Public Relations Officer Telephorus Chigwenembe attributed the decrease to prolonged dry spells in most parts of the country and the poor establishment and performance of some dark fire cured tobacco in the Malawi’s northern region

     The report of the first nationwide survey credited the good prices offered in 2023, increased number of growers, increased sponsorship and availability of inputs as reasons for the larger crop estimates.

    Tobacco estimate surveys in Malawi are conducted by players in the industry and are coordinated by the Tobacco Commission.

  • Diversification in Africa: FCTC No Help

    Diversification in Africa: FCTC No Help

    Photo: Taco Tuinstra

    While participants in the World Health Organization (WHO) Framework Convention on Tobacco Control (FCTC) are keen for tobacco growers to abandon the golden leaf, farmers around the world say they receive little support in switching to alternative livelihoods.

    Interviewed by the International Tobacco Growers’ Association, Ryan Swales, president of the Zimbabwe Tobacco Association (ZTA), said he has not witnessed any attempts from the global health body to assist with diversification.

    “I do not see any help from the WHO FCTC helping the diversification of tobacco farmers in Zimbabwe,” he was quoted as saying. “We are on our own, and a big proportion of large-scale growers have diversified on their own, with no help from anyone else, be it the tobacco companies or the WHO FCTC. If you ask many growers if they know who the WHO FCTC are, you will be met with a blank stare!”

    This sentiment was echoed by ZTA CEO Rodney Ambrose, who noted that for Zimbabwe’s tens of thousands of small-scale farmers, there simply are no viable diversification options. “Our ministry engaged in a study on behalf of WHO FCTC some years back, which clearly concluded that there are no economically viable crops other than tobacco for our small-scale farmers. Tobacco is their livelihood.

    “However, we are always willing to further explore diversification options that the WHO FCTC may propose.”

    In Malawi, tobacco growers have received support from the Foundation for a Smoke-Free World as the country seeks to broaden its economic base.

  • Malawi Licenses 250 Million Kg

    Malawi Licenses 250 Million Kg

    Photo: Taco Tuinstra

    The Tobacco Commission (TC) of Malawi has licensed the production of more than 248 million kg in the upcoming growing season, reports Malawi24.

    To give growers that missed the December registration an opportunity to participate in the crop, the TC recently extended the deadline to Jan. 31.

    TC Public Relations Officer Theophilus Chigwenembe said the commission has not encountered any major challenges affecting  the first round of crop estimates survey  for the 2023/2024 farming season, which started on 15th this month.

    Despite concerns about Malawi’s heavy economic reliance on tobacco production, the government continues to view the golden leaf as a critical resource for the economy.

    During a recent industry conference in Malawi, government representatives stressed the importance of compliance and data-driven strategies.

    “We believe that high quality data management will help all stakeholders not only track and trace our tobacco but also guide minimum performance levels that are expected of tobacco leaf suppliers in areas such as sustainable agriculture, environment and human rights,” Medrina Muloza Banda, principal secretary in the ministry of agriculture, was quoted as saying by the Nyasa Times.

    “Ultimately, this will make our tobacco compliant with international standards, thereby making our leaf more compliant to the global demand.”