Malawi: ''Tobacco Output Will Push Recovery Effort''

Source from:  The Daily Times  11/01/2012

The Tobacco Control Commission (TCC) has expressed optimism that the forth coming growing season's output will help the economic recovery efforts as the volumes are expected to be adequate enough to boost the country's foreign exchange earnings.

TCC expects Malawi to produce about 184 million kilogrammes of tobacco next year and match what buyers want from the country for the season.

Last season, Malawi produced only 79 million kilogrammes of tobacco, earning the country U$177 million.
 
TCC Chief Executive Officer Bruce Munthali said in an interview in Salima on Sunday that both production and market prospects for tobacco are looking positive for the country.
 
"We are very much optimistic that tobacco will significantly contribute to the recovery efforts looking at trends so far. And more farmers have registered," said Munthali.
 
He said the contribution of tobacco to the recovery efforts hinges on regulated production, improved quality, compliance issues and better unit prices while in the long term, value addition and balanced diversification of tobacco varieties would be critical.
 
However, some growers in Salima sought assurance from TCC on prices especially with the expected increase in production volumes while others expressed concern over the contract marketing where, they said, there were no prices agreed as expected.
 
Munthali told the growers that TCC was still discussing with buyers on the modalities of the contract farming.
 
"We had a meeting last week and we will continue to meet but the good thing is that even if the volumes increase, they will not surpass the demand as it used to be," explained Munthali.
 
Meanwhile, the TCC boss said due to the external pressure, the industry succumbed and moves to reduce auction marketing and increase contract sales or Integrated Productions System (IPS).
 
Government has this year allocated 80 percent of this year's total marketing to IPS but there have been concerns from other stakeholders that government has moved too fast in the phasing out of auction system.
 
"Buyers want the IPS to closely monitor production in regard to compliance issues. We know there are concerns but we had no choice," said Munthali.
 
He said, however, that should there be serious problems with the IPS, TCC would not hesitate to revise the figures allocated to contract sales. Enditem