TC Speaks On Weak Earnings

Source from:  Tobacco Reporter 10/22/2019

Inferior leaf quality and inaccurate forecasting by authorities contributed to the low prices prevailing during the 2019 Malawi tobacco selling season, reports The Times of Malawi, citing the Tobacco Commission (TC).

Malawi sold 165.7 million kg of tobacco this year, earning $237 million at an average price of $1.43 per kg in 2019.

The traded volumes, realization and average price attained were all lower than those attained last year when Malawi sold 202 million kg and earned about $337.5 million at an average price of $1.67 per kg.

Initial crop estimates had indicated that Malawi would produce around 206 million hectares of tobacco, but the country produced only 165.7 million, according to the TC.

TC CEO Kaisi Sadala said the overestimated production figure could have created the impression to buyers that the country had plenty of tobacco, thereby affecting pricing.

Sadala said authorities would address the problem to avoid a repeat of the situation.

The government has issued more than 50,000 tobacco growing licenses for the 2019–2020 season.  Enditem