Zambia: JTI Allocates $8.5m for 2016 Tobacco Season

Source from:  The Post 03/23/2016

Japan Tobacco International Leaf Zambia Limited has allocated US$8.5 million worth of agricultural inputs and loans for farmers in the 2016 season.

And JTI Leaf Zambia Ltd general manager Mike Roach says the company purchased 10.2 million kilogrammes of tobacco in 2015 amounting to a total of almost US$20 million.

Japan Tobacco International (JTI), the world's third largest tobacco company, established its presence in Zambia in 2010 and buys tobacco leaf from 7,000 small-scale and commercial farmers.

The company procures burley grown in Eastern Province and flue-cured virginia, cultivated in Kaoma, Western Province.

Roach stated that JTI Zambia has provided agricultural inputs and loans worth US $8.5 million to help farmers produce tobacco leaf during the 2016 season.

"For the 2016 season we have provided agricultural input and loans to farmers to the value of US $8.5 million and expect to receive just over 10 million kgs of tobacco. We expect prices to be higher than 2015 primarily based on the fact that as the quality of tobacco that is produced improves, so does the price that is paid for that tobacco," Roach stated in response to a press query.　

"By providing agricultural extension services to our farmers, we increase the quality and yield of tobacco produced and therefore increase the return the farmer makes whilst increasing the quality of tobacco we receive - a win-win solution for all. We currently have 60 extension workers in the field or leaf production technicians as we call them. Our aim is to improve the quality of Zambian tobacco to a level that rivals the quality of tobacco produced in other parts of the world, namely Brazil, the US and Zimbabwe to name a few."

He added that JTI Zambia purchased over 10 million kilogrammes of tobacco in 2015 amounting to almost US $20 million.

"For the 2015 season, we purchased 10.2 million kgs of tobacco at an average price of US $1.96 per kilogramme, a total of almost US $20 million. Flue-cured tobacco (which we source from the Western Province and the commercial farmers) earns a higher return as it has a higher cost of production than Burley tobacco, which is more of a difficult crop to grow and cure and is used more as the flavour component of a cigarette," stated Roach. Enditem