Uganda: Tobacco Farmers to Get 5 Percent Bonus in 2007

Source from:  The Monitor (Kampala) January 12, 2007 01/12/2007

THE British American Tobacco Uganda has announced a big bonus to farmers for tobacco grown in the 2007 season. The announcement comes barely two weeks after announcing increased pre-planting prices to be paid for farmers for the 2007 tobacco crop. The new Leaf Director, Mr Serhat Eroglu said in a statement that the 5 per cent bonus is for all farmers who grow and sell up to 30 per cent more than their full contracted volumes. "This is a direct benefit from the re-organisation we conducted at the end of 2006 to achieve greater efficiencies. In fulfilment of our promise, these benefits and more will be shared with our valued farmers," Mr Eroglu said. "Our target is to achieve 25 million kilogrammes of tobacco grown annually in the medium term, and we can only achieve this in partnership with our farmers. The farmers have already indicated their commitment to this and we are putting in place the right mechanisms for it," he added. Eroglu said farmers have to pay their interest-free loans in full before qualifying for the 30 per cent bonus. The company will pay Shs3, 300 for top-grade Flue-Cured Virginia Tobacco (FCV) up from Shs3,000 this year, and Shs2,450 for top-grade Burley Tobacco up from Shs2,400. Flue-Cured Virginia is grown predominantly in West Nile, Middle North and North Kigezi regions comprising of districts Yumbe, Koboko, Arua, Lira, Pader, Kitgum, Gulu, Kanungu and Rukungiri districts. Burley is grown in Bunyoro-Mubende region, which is comprised of Hoima, Masindi, Kibaale, Kiboga and Mubende districts. This year, BAT, which contributes over Shs40 billion in taxes per year, marks 80 years of operation in Uganda. The company began tobacco growing and processing in 1927, and set up the first cigarette-manufacturing factory in East Africa. Enditem