Tobacco exports jump 36 percent
January to June 2014 exports for Malawi’s major forex earner, tobacco, jumped by about 36 percent, according to a report published by Ventures Africa which has quoted Tobacco Control Commission (TCC).
However, up to week 16 of this year’s marketing season, earnings—what the farmer receives—dropped by three percent compared to corresponding period last year due to what the TCC has described as poor prices.
The Ventures Africa report quotes TCC as having said that based on data compiled by the Reserve Bank of Malawi (RBM), cumulative tobacco exports in the first half of 2014 jumped to $137.7 million compared to $87 million exported in the same period last year.
TCC chief executive officer Bruce Munthali could not pick his phone when he was contacted to reconcile the market and the export earnings.
Speaking on Friday at Limbe Auction Floors, Munthali said up to week 16 of this year’s marketing season, the market has sold 127 million kilogrammes valued at $227 million with this year’s earnings which is three percent lower than same period last year due to poor tobacco prices globally.
He, however, said in volumes the third round tobacco estimates production are at 182 million kilogrammes which represents a six percent decrease compared to the second round estimates.
The decrease he said is largely attributed to weather related factors—the excessive rains which occurred in February and March this year which had a negative impact on production.
According to the Ministry of Agriculture, Irrigation and Water Development, tobacco still remains Malawi’s strategic crop.
According to the ministry, from growing to marketing, tobacco, employs 12 percent of Malawi’s labour force, contributes 15 percent of Malawi’s GDP and brings in over 60 percent of forex earnings.
Malawi is also one of seven countries in the world that derives at least one percent of export earnings from tobacco.
Last year Malawi’s total sales of tobacco amounted to 168.67 million kilogrammes and raked in at total $361.84 million at an average $2.15 per kg.
According to TCC Malawi earned $330.9 million from tobacco exports between July and December last year.
The tobacco industry regulator described the figure as a significant improvement compared to what the country earned during the same period last year.
