Tanzania: Tobacco Growers in Mara Region Earn Above Prevailing Market Prices

Source from:  Tanzania Daily News (Dar es Salaam) 02/15/2012

MARA region's tobacco farmers were paid 1.34 US dollars (over 2,100/-) per kilogram, the prevailing price in the Kenyan market. The price was above the average price of 1.15 US dollars (about 1,800/-) per kilogram that many local tobacco growers received. According to Alliance One Tobacco Tanzania Limited, the sole buyer of the cash crop in the region, tobacco growers in Mara are used to Kenyan grading and pricing systems because they have for many years been exporting their produce to the neighbouring country. The firm's Managing Director, Mr Mark Mason says over 185,735 kilograms of the brown gold have so far been bought, dismissing allegations that the company has been cheating farmers in the region. He argues that a December 5, 2011 meeting Tanzania Tobacco Board (TTB) and Alliance One endorsed the use of the dual system of classification at least for now while thinking of a middle level grading in future. Mr Mason was clarifying on recent allegations by Mara regional officials who accused the company of shortchanging farmers. He dismisses as unjustifiable the allegations that his firm has been enjoying monopoly over tobacco business in the region due to TTB's laxity. "Our presence in Mara as a single buying company is based on an agreement reached in 2007 with TTB and the Ministry of Agriculture (and Food Security) during the launch of tobacco growing project in the region… and that agreement has never stopped competitors from coming in," charged the MD. Tobacco growing in Mara was suspended over three decades ago due TO diseases. The government is contemplating reintroducing the crop cultivation following Alliance One and TTB's three years of research to establish if the brown gold can be farmed in the region, commercially. Mr Mason said when Mara officially becomes a tobacco growing region, with establishment of cooperative societies, his company will leave the responsibility of supplying inputs to farmers to cooperative societies, which will take charge of more activities. "Formation of tobacco farmers' primary cooperative societies in northern Tanzania is inevitable to match other growing regions in the country and maintain operational uniformity," argues Mr Mason. According to TTB acting Director General Mary Assey, any tobacco company is welcome to join the research in Mara ahead of the government decision to allow commercial production of the cash crop. "In Mara region, the Ministry of Agriculture is yet to approve commercial production of tobacco after two seasons of trials and the only company that has been supporting the initiative is Alliance One Tobacco Tanzania Limited," says Ms Assey, also dismissing recent reports the tobacco firm, a subsidiary of North Carolina based Alliance One International, enjoys monopoly and underpays farmers. Ms Assey says prices paid to farmers and the grading system follows both Kenyan and local standards and that farmers are paid the highest price prevailing at a particular time. "Tobacco cultivation in Mara region is a bit different from other parts of the country because it is still on trial pending the ministry's approval for commercial production," notes Ms Assey whose Board has been accused of laxity and favouritism to tobacco firms. She emphasised that Alliance One is behind the push to ensure reinstatement of commercial production of the produce in Mara region, charging that board was established with statutory powers to protect farmers' interests and in no way it will side with investors at the expense of farmers. "Tobacco Board was established by Act of Parliament No. 24 of 2001 with responsibility to regulate the industry, supervise development which includes protecting interests of farmers against cheating buyers," she maintains. Enditem