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Tag: tobacco farmers

  • Malawi Tobacco Market Rocked by Widespread Rejections

    Malawi Tobacco Market Rocked by Widespread Rejections

    Malawi’s 2026 tobacco marketing season opened with severe disruption, as growers report rejection rates as high as 96–100% at auction floors, driven by a widening gap between global supply and demand, according to The Nyasa Times. Officials say excess production has forced buyers to tighten purchasing volumes and quality standards, leaving many farmers unable to sell their crop, and raising concerns over income loss and loan repayment.

    The Tobacco Commission launched urgent talks with buyers and industry stakeholders to stabilize the market and improve uptake, as the situation threatens broader economic impacts. With tobacco remaining Malawi’s top foreign exchange earner, sustained disruptions could affect national revenue and economic stability if rejection rates persist.

  • Philippines’ NTA Addressing Tobacco Market Pressures

    Philippines’ NTA Addressing Tobacco Market Pressures

    The National Tobacco Administration (NTA) convened stakeholders in Ilocos Norte to address mounting challenges in the tobacco sector, including falling farmgate prices, oversupply, and ongoing smuggling. The meeting brought together local governments, traders, and farmer groups to assess market conditions and explore coordinated responses as global and domestic supply pressures weigh on pricing and demand.

    Officials highlighted a sharp drop in leaf prices—from over ₱100 ($1.60) per kilo to around ₱75 ($1.20)—along with rising production costs and delayed support funding. Farmers also pointed to difficulties in selling uncontracted crops amid excess supply both locally and globally. In response, the NTA is pushing for expanded contract-growing arrangements and crop diversification strategies, while stakeholders are committed to improving coordination and market access to stabilize the sector.

  • Malawi Faces Oversupply as Tobacco Season Opens

    Malawi Faces Oversupply as Tobacco Season Opens

    Malawi’s 2026 tobacco marketing season has opened with a significant supply-demand imbalance, as production is projected at 197 million kg against buyer demand of just 170 million kg, leaving a surplus of about 27 million kg. Early signs at auction floors point to slow uptake, with less than half of delivered bales initially put up for sale, raising concerns over stock build-up.

    Industry participants say the gap reflects weaker global demand and excess supply, with buyers holding greater leverage and some still carrying unsold inventory from the previous season. Major buyers, including JTI Leaf, Alliance One, and Limbe Leaf, are collectively targeting volumes well below expected output, highlighting a shortage of purchasing capacity.

    The imbalance is expected to put downward pressure on prices and farmer incomes, following a similar pattern last year when oversupply led to price declines. With tobacco remaining a key source of export earnings, officials have urged fair pricing, though market conditions remain driven by the excess supply and limited buyer demand.

  • Zimbabwe Assures Farmers Record Tobacco Crop Has Buyers

    Zimbabwe Assures Farmers Record Tobacco Crop Has Buyers

    Zimbabwe’s Tobacco Industry and Marketing Board (TIMB) guaranteed that the country’s projected record tobacco harvest projected to top 400 million kg will be fully absorbed by buyers, easing concerns over a global supply glut. International and domestic merchants have already committed to purchase the bulk of the crop, with authorities aiming to prevent a repeat of market disruptions seen in other producing countries where oversupply led to price collapses.

    Despite strong volumes, global demand has softened following post-pandemic stock rebuilding by cigarette manufacturers, contributing to an estimated 18% drop in prices. However, officials say emerging markets and potential future supply risks could support demand and pricing later in the season.

  • Philippines Warns of Tobacco Oversupply, Moves to Stabilize Market

    Philippines Warns of Tobacco Oversupply, Moves to Stabilize Market

    The Philippines’ National Tobacco Administration raised concerns over a potential oversupply of flue-cured Virginia tobacco as the trading season opens in the Ilocos Region and Abra, after several local government units reportedly encouraged farmers to expand production without formal marketing agreements. Of the country’s 45,000 registered tobacco growers, only 10,000 are covered under the Tobacco Contract Growing System, leaving thousands exposed to uncertain market access and pricing pressure.

    To manage the surplus risk, NTA Administrator Belinda Sanchez is convening meetings with local governments, traders, and farmer leaders, while lobbying manufacturers to prioritize locally grown leaf over imports during the 2026 trading season. The agency says stronger coordination is needed to prevent market gluts that could hurt farmer incomes.

    At the same time, NTA branch offices have been tasked with mediating grading and pricing disputes at trading centers, after reports that some tobacco leaves were being misclassified or rejected. Buying stations run by Universal Leaf Philippines Inc., Trans Manila Inc., and Continental Leaf remain open to receive farmers’ crops across the Ilocos provinces.

  • Pyxus Empowers Growers with New Mobile App

    Pyxus Empowers Growers with New Mobile App

    Pyxus International has launched Pyxus Alliance, a proprietary mobile application aimed at simplifying crop contracting and management for growers. The platform allows growers to self-submit contract-related data, request crop inputs, access essential crop information, and update personal records, all from a single, convenient interface. By reducing reliance on paper documentation and administrative tasks, the app is designed to give growers more time to focus on producing high-quality, sustainable, and compliant crops. According to Pyxus CEO Pieter Sikkel, the app represents an industry milestone as the first digital solution of its kind, streamlining operations while enhancing grower autonomy.

    The app is currently being piloted with select contracted growers in Brazil, where early feedback has been highly positive. Growers like Samuel Krambeck report that the platform has cut the time spent on contracting by roughly 80% compared to previous methods, allowing more focus on crop quality and productivity. Pyxus plans a global rollout following the pilot phase, and the app is now available for participating growers through Google Play and the Apple App Store, marking a significant step toward digitizing agricultural operations and improving efficiency across the company’s global grower network.

  • Zimbabwe Tobacco Farmers Want Forex Review as Season Approaches

    Zimbabwe Tobacco Farmers Want Forex Review as Season Approaches

    As Zimbabwe prepares for the March 4 opening of the 2026 tobacco marketing season, growers are urging authorities to review the 70:30 foreign currency retention policy, arguing that receiving 30% of payments in local currency (ZiG) erodes profits as most production costs are pegged in U.S. dollars. Zimbabwe Tobacco Growers Association chairman George Seremwe said farmers are ready for the season but want the policy aligned with input costs, while Tobacco Farmers Union Trust president Edward Dune noted that fertilizers and other inputs are sold in foreign currency, reducing the real value of local currency payments. The marketing season, announced by the Tobacco Industry and Marketing Board (TIMB), will coincide with the launch of the Tobacco Value Chain Transformation Plan 2, which targets 500 million kg annually by 2030, with more than 400 million kg expected this year.

    TIMB said it has licensed 48 contractors and 46 Class A buyers for the 2025/26 season, with three auction floors — Tobacco Sales Floor, Premier Tobacco Auction Floors and Ethical Sales Floor — set to operate. Authorities are also cracking down on side marketing and informal buyers offering low prices, while farmer groups including the Zimbabwe National Farmers Union have urged growers to sell through formal channels to secure better returns. With 113,327 registered growers and a 15% increase in planted hectarage, officials say the 2026 crop outlook remains positive, reinforcing Zimbabwe’s position as Africa’s leading tobacco producer.

  • Malawi’s MNT Concerned Over CSR, Rogue Farmers  

    Malawi’s MNT Concerned Over CSR, Rogue Farmers  

    Malawi’s Media Network on Tobacco (MNT) raised alarm over what it describes as persistently low levels of corporate social responsibility among tobacco buying companies, urging them to take meaningful steps to support farmers and surrounding communities. Speaking during an interface meeting with journalists, MNT President Alfred Chauwa also condemned the growing practice of farmers selling their tobacco before the official market opening, warning that it exposes them to exploitation. He said some farmers are accepting prices as low as K4,000 ($2.32) per kg, a move he described as damaging to livelihoods and the broader tobacco value chain.

    Chauwa encouraged farmers to diversify into early maturing crops in line with the Tobacco Industry Act, which promotes agricultural diversification. He further highlighted the effects of climate change on farming, calling for increased participation in tree-planting initiatives to restore the environment. Expressing concern over declining tobacco quality in several areas, he urged farmers to adopt best agricultural practices to secure better prices. Chauwa also appealed to the government to deploy more extension workers to provide technical support, saying improved guidance is critical to boosting productivity, quality, and long-term sustainability in the tobacco sector.

  • Withheld Funds Crippling Philippine Tobacco Farmers

    Withheld Funds Crippling Philippine Tobacco Farmers

    Billions of pesos (1 peso currently equals 0.017 USD) in tobacco excise tax shares earmarked for Philippine tobacco-growing provinces from 2023 to 2025 remain unreleased, triggering mounting frustration among industry leaders and farmers in the Ilocos region, according to the Philippine Star. Long regarded as the “Solid North” that underpinned President Ferdinand Marcos Jr.’s electoral support, tobacco farmers now warn that the government’s failure to remit funds mandated under Republic Act 7171 threatens rural livelihoods amid rising production costs. Industry representatives said the prolonged delay has crippled critical programs intended to support farmer self-reliance and local development.

    Former Ilocos Sur governor Luis “Chavit” Singson, author of RA 7171, said that despite the signing of the P6.79-trillion ($115.4 billion) 2026 national budget, excise tax shares from the previous three years remain unpaid. He warned that the withholding of funds has created service gaps that undermine socio-economic stability in tobacco-producing areas, preventing local government units from addressing urgent needs and advancing infrastructure and agricultural projects. Singson emphasized that tobacco remains a pillar of the national economy and that the law was designed to provide local government units with consistent, predictable resources.

    Singson expressed cautious optimism that the appointment of Acting Budget Secretary Rolando Toledo could help resolve compliance bottlenecks delaying the releases. He urged the national government to honor its commitments, calling for the funds to be released within 30 days to avert further hardship. Pointing to Ilocos Sur’s plans to expand irrigation, road networks, and tourism infrastructure, he described it as ironic that excise tax shares vital to these initiatives remain withheld, despite the province being recognized by the Commission on Audit as the country’s richest.

  • Philippines Defends Tobacco-Growers at COP11

    Philippines Defends Tobacco-Growers at COP11

    The Philippine delegation at COP11 earned praise from agricultural and civil society groups for emphasizing the country’s sovereign right to evaluate proposed global measures according to national priorities and capacities. Ambassador Carlos Sorreta, head of the delegation, highlighted the need for “socially and economically responsible” transitions that protect communities dependent on tobacco cultivation, noting that the crop continues to support livelihoods across nearly 20 provinces.

    Sorreta underscored that FCTC guidance is non-binding and should complement existing national efforts rather than impose restrictions. Local organizations, including the Northern Luzon Alliance, applauded this stance, warning that measures such as ending government support, imposing quotas, or phasing out tobacco sales would be “unrealistic, overly punitive and incompatible with the country’s agricultural and economic realities,” potentially threatening rural livelihoods and linked industries.

    The Federation of Free Farmers echoed these concerns, noting tobacco’s critical role in sustaining rural communities. It commended the delegation for prioritizing farmers’ welfare, arguing that the approach reflects a clear understanding of on-the-ground realities and protects not only the economic stability of tobacco-growing regions but also the dignity and future of the families who rely on this crop.