Tanzania: Government All Out to Increase Tobacco Production

Source from:  Tanzania Daily News 11/30/2009

THE government has said that it will increase tobacco production from 58,702 tonnes of the previous year to 60,000 in the current 2009/2010. According to the deputy minister for Agriculture, Food Security and Cooperatives, Dr David Matthayo a total of 340bn/- has been collected as tobacco taxes in the last 5 years. About 52bn/- was collected in 2003/2004.some 59bn/- in 2004/2005 whereas 62bn /-was collected in 2005/2006, and 77bn in 2006/2007. At the same time 90bn/- was collected in 2007/2008. The money, he said was put in the governmentís fund and used for different public service delivery. Speaking during the 10th anniversary of the company, the Morogorobased, tobacco processing company this week, Alliance One Tobacco Tanzania Ltd (AOTTL), Managing Director, Mr Graham Kayes said tobacco production in the country has increased by 167 per cent during the last eight years. He said production has risen to 59 million kilogrammes this year from 22 million kilogrammes produced in 2000. "This growth has resulted in local farmers to get an average of 300,000/- per hectare to 500,000/.- this season," he said during the occasion to mark the 10th anniversary of the company held in Morogoro. Mr Kayes noted that during the past ten years, the company's processing capacity has also increased by 175 per cent from 9.3 million kilogrammes in 2000 to 25.6 million kilogrammes this year. He said quality of local tobacco has also improved with the average price to the grower rose from $0.50 per kg to USD 2.50 per kilogramme of tobacco. According to him, the average productivity per hectare has doubled from 600kg/ha ten years ago to 1,250kg/ha this year. He said the initial investment of AOTTL was more than USD 40 million (52 billion/-), making its factory one of the best tobacco processors in Africa. Mr Kayes said tobacco is now the second largest cash crop in Tanzania contributing about USD 143.3 million per year to the country's economy. Enditem