Malawi Crop Estimate Adjusted Downwards

Source from:  Tobacco Reporter 07/15/2009

The amount of tobacco officially traded in Malawi this season will fall short of earlier estimates, according to a Reuters report quoting a Tobacco Control Commission source. Unhelpful weather, inadequate curing facilities and rampant leaf smuggling into Mozambique and Zambia are said to have combined to reduce the official crop from an estimated 250 million kg to about 224 million kg. Even the 224 million kg estimate, however, puts the 2008/09 crop 26 per cent higher than that of the previous season, which is part of the reason why prices have been disappointing, and lower than the government-imposed minimum of $2.15 per kg. After 14 weeks of trading this year, 99.5 million kg of tobacco had been sold at an average price of $2.08 per kg, while during the same period of the previous season, 98.7 million kg had been sold at an average price of $2.24 per kg. The modest prices are thought to have reflected also the poorer quality of this season's tobacco. Enditem