Tobacco Crop Bigger Than Expected

Source from:  Business World 09/20/2011

THE COUNTRY'S tobacco output in the crop year 2010 to 2011 has exceeded the government's projected production owing to favorable weather conditions, an official of the National Tobacco Administration (NTA) said on Friday. NTA Administrator Edgardo D. Zaragoza told reporters on Friday that tobacco production reached 78.40 million kilograms (kg) for the crop year, higher than the government's 77 million kg forecast. Compared to the previous crop year's output of 73.77 million kg, this year's production was up 6.3%. "The increase for the last crop year was due to better weather. There was [less] rain." he said noting that higher production was seen in the provinces of Isabela and Cagayan. In terms of value, he said production was up 10.9% to P5.373 billion from the P4.846 billion in crop year 2009-2010. Asked if the government was revising its outlook for tobacco production for 2011-2012 after the latest production exceeded the government's projection, he said that they were keeping their estimate of 80 million kg. "It (the projection) is still at 80 million kg [for crop year 2011-2012]. That's our conservative estimate or commitment," he said, adding though that actual production can go higher than the estimate depending on weather conditions. He said a 2% increase in production in the new crop year is expected 2010-2011's output due to higher yield. "We are looking at [a] continuing increase in yield because more and more farmers are being taught on how to till their lands properly," he said. He also said that production is likewise expected to rise as demand from export markets is expected to be sustained for the new crop year. Exports of unmanufactured tobacco or tobacco leaves, he said are expected to reach 35.1 million kg in 2011-2012, 4.9% higher than the recently concluded crop year's 33.452 million kg. The value of exports of unmanufactured tobacco, he also said, amounted to $105.607 million. The markets for the country's unmanufactured tobacco exports, he said, are the US, Belgium, South Africa, Korea and Malaysia. He declined to provide a projection when asked for an outlook on exports of manufactured tobacco to other countries, citing that they do not have enough information to give an estimate. "It is difficult to give [a projection] for [exports of] manufactured [tobacco products]since we don't have control over the manufacture of cigarettes," he said. Exports of manufactured tobacco, he said, reached 23.493 million kg, valued at $161.159 million, in 2010-2011. He said the top destination countries of the Philippines' manufactured tobacco are Thailand, Korea, Singapore, Malaysia and Vietnam. Enditem