Tobacco Industry: Zambia''s Emerging Income Earner

TOBACCO has continued to be one of the most important cash crops in Zambia and contributes greatly to the country's economic development by empowering local people financially.

The industry is very significant to the economy as it also employs more than 450,000 people.

This is evidenced from the demand for Zambian produced tobacco which has continued to increase due to high quality and flavour.

Zambia has vast potential to increase tobacco production because of the suitable climatic conditions that include land, suitable soils, water and labour.
 
The types of tobacco produced in the country include burley (air cured), Virginia (flue-cured) and dark fire-cured tobacco.
 
Agriculture and Livestock deputy Minister Rodgers Mwewa said the industry was generally performing very well and that, it had continued to be one of the best selling in terms of revenue generation compared to maize.

"Generally, tobacco in Zambia is doing very well and I think that among the crops that farmers are growing today, the crop is one of the best selling compared to maize.
 
You cannot compare the money that we get from tobacco to that which we get from maize. I think that tobacco is the highest selling in the country," Mr Mwewa said.
 
He said that was the more reason why the Government must come in and support tobacco farmers by encouraging an outgrower scheme kind of farming.
 
Mr Mwewa said Zambia was currently selling and exporting tobacco to countries such as China, Japan and Brazil, but that, China was one of the major buyers of tobacco from Zambia.
 
The deputy minister said whatever was produced in Zambia was exported to China, adding that the country currently could not satisfy the demand in that country.

"About 100 per cent of what is produced in Zambia is exported to China and other countries like Japan and Brazil, but Chinese are the major consumers," he said.
 
Tobacco Board of Zambia (TBZ) said the industry was expected to increase value to K600 million in the 2013 marketing season.

TBZ secretary Samson Muyembe said the industry was expected to produce a volume of 40 million Kilogrammes of all types of tobacco with an expected value of about K600 million during the 2013 tobacco marketing season.
 
Mr Muyembe said the industry was performing very well, and that tobacco had continued to be one of the most important cash crops in Zambia.
 
Production levels during the 2012 tobacco season, stood at 35 million kilogrammes valued at K550 million.

Projections showed that the prices of tobacco in 2013 were expected to improve in comparison to 2012 and the previous years.
 
There was a growing demand for Zambian produced tobacco which was attributed to the high quality and flavour of the commodity.
 
Mr Muyembe urged farmers to sell tobacco to their sponsors to ensure that they pay back the production loans to the companies which sponsored their production, as there had been recent cases of the side selling tobacco by farmers.
 
It was encouraging that most companies were complying with the tobacco regulations and laws governing the industry.
 
TBZ projected to reach more than 60 million kilogrammes of tobacco within the next five years.

Farmers were impressed with the prices of tobacco. In 2013, flue-cured Virginia was selling at an average of about K17 per kg, while barley is fetching an average of K9.
 
The highest price for Virginia flue-cured is K28.10 per kilogrammes, while that of barley is K15 as compared to 2012 in which the average price of Burley was K6.50 kilogramme and that of Virginia was K15.5.

"In the 2013 tobacco marketing season, the industry is expecting to produce a volume of 40 million Kilogrammes of all types of tobacco with a value of about K600 million.

It is also important to note that prices of tobacco this year have improved compared to 2012 and other previous years," he said.

Mr Muyembe also said there was need to increase sponsorship in tobacco production to boost production, thereby creating more jobs, generating household and national income.

"As tobacco production increases, there is need to add value through processing," Mr Muyemba said.
 
He said TBZ was facilitating the increased tobacco production by attracting investors into the industry.
 
Recently, Choma District Commissioner Golden Nyambe said government recognised tobacco's contribution to the gross domestic product (GDP) and employment creation.
 
Mr Nyambe noted that tobacco cultivation is critical for Zambia's economy as it has been one of the agricultural activities to remain buoyant during the recent worldwide crises.
 
The district commissioner said more than 23,000 rural families relied on tobacco growing, while 40,000 workers were directly employed in tobacco growing.
 
He explained that Zambia last season produced more than 40 million kilogrammes of tobacco with export recovery estimates valued at more than $131 million.
 
Mr Nyambe clarified that tobacco was a very important and specialised export crop, hence farmers needed specialised knowledge and skills to successfully grow it.
 
The transfer of agricultural technologies in tobacco production through demonstration plots will enable students at Popota College and farmers to be better equipped with vital knowledge and skill required to grow tobacco.
 
He pointed out that his office would dialogue with Zambian fertilisers and Popota Tobacco College in Choma, Southern Province, to see how the community, workers, staff and farmers involved in growing tobacco and other crops can acquire inputs on loan.
 
On the other hand, farmers are generally impressed and happy with tobacco prices. Farmers have also commended government for authorising tobacco to be quoted in local currency, the Kwacha, as they are able to understand it.
 
The demand to grow tobacco is increasing and welcoming tobacco production investment, especially in new areas such as Copperbelt, Muchinga, Northern, North-Western and Luapula provinces is the best move.
 
It is for this reason that TBZ was in the process of putting up offices in all provinces of Zambia to facilitate increased tobacco production in the country.
 
However, farmers are advised to desist from side-selling of tobacco but sell tobacco to their sponsors to ensure that they pay back the production loans to the companies which sponsored their production.
 
It is very encouraging that most tobacco companies are complying with the regulations and laws governing the tobacco industry.
 
There is need to increase sponsorship to tobacco production to boost tobacco production, thereby create more jobs, generate household and national income.
 
As the tobacco production increases, there is need to add value through processing.
 
There is need for investors to invest in tobacco processing which will create more jobs for the people as well as generate foreign exchange for the country.
 
TBZ is facilitating the increased tobacco production by attracting investors into the industry and was projecting to reach more than 60 million Kilogrammes of tobacco within the next five years. Enditem