Malawi moves to 80 per cent contract sales but prices not yet fixed

| November 5, 2012

Malawi’s Tobacco Control Commission (TCC) has expressed optimism that the forthcoming tobacco growing season will see production increased and foreign exchange earnings boosted, according to a story by Kingsley Jassi for the Daily Times.

The TCC expects the country’s growers to produce about 184 million kg of tobacco next year, an amount that is said will be in line with demand.

Last season,Malawiproduced only 79 million kg, earning the country US$177 million.

TCC CEO, Bruce Munthali, said in an interview in Salima on Sunday that both production and market prospects for tobacco were looking positive for the country.

He said the contribution of tobacco to the country’s economic recovery efforts hinged on regulated production, improved quality, compliance issues and better unit prices; while in the long term, value addition and balanced diversification of tobacco varieties would be critical.

However, some growers in Salima sought assurance from the TCC on prices, given the expected increase in production and the switch to contract marketing where, so far, no prices have been agreed.

Munthali told the growers that the TCC was still discussing the details of the contract system with buyers.

“We had a meeting last week and we will continue to meet but the good thing is that even if the volumes increase, they will not surpass the demand as it used to be,” said Munthali.

Eighty per cent of this year’s sales are expected to be made through contracts and some observers believe that the government, under pressure from buyers, is moving too fast in phasing out auctions.

Category: Breaking News

Comments are closed.

Sponsor Ad

Sponsor Ad

From the leaf lands

Lebanon suffers leaf losses

Lebanon suffers leaf losses

A survey is to be carried out to determine the extent of losses incurred by tobacco growers in southern Lebanon, where viruses are said to have caused extensive damage.

| May 24, 2018
Universal presents results

Universal presents results

Universal Corporation expects to make higher volume sales from the next tobacco-crop cycle, given that the global market remains stable.

| May 24, 2018
Contracting Burley

Contracting Burley

Tennessee’s Burley crop is expected to fall by 20 percent or more following Alliance One International’s decision not to buy US Burley.

| May 22, 2018
Leaf prices increased

Leaf prices increased

Flue-cured tobacco growers in Zimbabwe will be hoping that the “encouraging” prices being paid for their leaf will stand up for the rest of the season.

| May 22, 2018
Growers up in arms

Growers up in arms

Some tobacco growers in Pakistan are claiming that tobacco manufacturers are exploiting them, and they have vowed to fight back.

| May 22, 2018
Universal results webcast

Universal results webcast

Candace C. Formacek, vice president and treasurer at Universal Corporation, will host a results webcast on May 23.

| May 21, 2018

Sponsor Ad

Sponsor Ad

Web exclusives

Discussing challenges

Discussing challenges

Tobacco growers convene in Indonesia.

| April 2, 2018
The promise of heated tobacco

The promise of heated tobacco

Peter Nixon, PMI’s U.K. and Ireland MD, praises England’s progressive approach to new technologies.

| February 28, 2018
Celebrating cigars at Puro Sabor

Celebrating cigars at Puro Sabor

Five days of factory tours, farm visits, recreational activities and many, many cigars.

| February 5, 2018
Farmers concerned

Farmers concerned

The ITGA worries about slumping demand for leaf tobacco and a lack of alternative crops

| November 2, 2017
Their fair share

Their fair share

Tobacco growers deserve better

| November 1, 2017
Lease on life

Lease on life

Industry leaders respond to the FDA’s new attitude toward vapor products.

| October 1, 2017
The Vype Dossier

The Vype Dossier

Proving the reduced-risk potential of an e-cigarette

| October 1, 2017

Sponsor Ad

Sponsor Ad

Sponsor Ad