Philippines: Tobacco Output Falls Short of Target in 2012

Source from:  GMA News 07/05/2013

The country fell short of its production target of 70 million kilograms of tobacco for crop year November 2011 to August 2012, producing 64.7 million kilograms with a value of P4.6 billion, the The National Tobacco Administration reported.

However, said NTA administrator Edgardo Zaragoza, the agency is keeping its 70-million-kg tobacco output estimate for the next crop year.

"The increased tobacco production projection for this crop year is based on favorable weather," he said.

The latest NTA data showed that for crop year 2012, the average actual buying price of the three varieties of tobacco grown in the country was at P71.40 per kilo.

In 2012, total importation of tobacco leaves for blending amounted to 83 million kilos with a value of P177.67 billion. The top countries of origin are China, Korea, Singapore, Hong Kong and Malaysia.

The Philippines also exported 66.2 million kilos of tobacco leaves last year, valued at P200 billion. The top five destinations last year were the United Arab Emirates, Malaysia, Samoa, Singapore and Thailand.

"The orders may be higher, but we have to comply with the demand from the local market so exports are assumed to be the same as in the last crop year," said Zamora.

AgriPinoy trading center

An initial 7,700 tobacco farmers will stand to benefit from the P165-million agri-business project designed to serve as an additional source of livelihood for tobacco growers in Northern Luzon.

The project will include the construction of the AgriPinoy Tobacco Farmers Food Processing and Trading Center (NTA AgriPinoy) in Barangay Nanguneg, Narvacan, Ilocos Sur, which will start engaging in contract growing services for hog and poultry among tobacco-farmer cooperators, with the NTA providing them with production input, early next year. Enditem