Tanzania: Good Prospects as Tobacco Buying Season Begins

Source from:  Daily News  07/17/2013

TOBACCO buying season in Morogoro Region looks promising with sales targets of 29.93 million kilogrammes for Flue Cured Virginia (FCV) tobacco and 1.04 million kilogrammes for Dark Fire Cured tobacco (DFC).

According to a statement issued by Alliance One Tobacco Tanzania Limited (AOTTL), the buying season is midway and the produce purchased already stands at 16.42 million kilogrammes for FCV tobacco and 0.06 million kilogrammes for DFC tobacco.

"This year we are focusing on increasing efficiency in our production chain, building on the successes of last year where we produced an excess of 30 million kilogrammes of tobacco at our facility in Morogoro," said Mark Mason, Alliance One's Managing Director.

Mr Mason said in the statement that the targets set by AOTTL agronomy experts annually are in line with company growth and are satisfying local and international clientele with both the quantity and quality they expect from Alliance One.

He said that the signs of better yields are evident as reflected in the current average price per kilogramme of 2.40 US Dollars for FCV, which exceeds the targeted average price of 2.06 US Dollars.

"The same results are reflected in DFC average prices which currently stand at 1.68 US Dollars from a 1.47 US Dollars. AOTTL has already purchased 39.90 million US Dollars worth of FCV and 960,000 US Dollars worth of DFC as of 30th June 2013," the statement read in part.

Tanzania's tobacco farming has experienced tremendous growth in recent years due to improved marketing transparency, effective production management, greater crop compliance, organisation of smallholder farmer units into primary societies and increased productivity potential.

The improvements noted over the last few years are the culmination of a successful partnership between all stakeholders in the tobacco farming industry.

"Alliance One continues to be a significant contributor to Tanzania's annual tax revenue, and welcomes the on-going and planned developments to infrastructure especially the road networks. A better road network can only help enhance the company's efficiencies, considering the fuel levy increase mentioned in the recent budget speech," said Mr Mason.

He said that he was excited that Alliance One continues contributing to the nation's development, especially in light of the buying season that already looks positive at this early stage. Alliance One deals primarily in flue-cured, burley and oriental tobaccos that are used in international brand cigarettes, including American blend cigarettes, which contain approximately 50 per cent fluecured, 37 per cent burley and 13 per cent oriental tobacco but contain less tar and nicotine. Enditem