Malawi’s burley tobacco is doing well in the global market, with prospects for a further increase in the next three years, reports The Times Group.
According to Tobacco Processors Association (TPA) Chairperson Moffat Gama, who is JTI’s managing director, this is due to the drop in production in the region, which has boosted Malawi’s burley demand as the country hopes to produce over 200 million kilogrammes (kg).
“The demand outlook is very good on the backdrop of underproduction, not only in Malawi but in neighboring countries, so there is a three-year hole that must be filled,” Gama said.
With the country’s farmers failing to meet demand over the past four years, Gama said this presents a good demand opportunity that must be utilised as tobacco processing companies suffer capacity under-utilisation that is limiting export volumes. “We do find our factories under-processing and there is a possibility to import tobacco from neighbouring countries and there are processes stipulated in the law and we just have to follow,” Gama said.
Tobacco Commission Board Chairperson Godfrey Chapola believes the increasing number of buyers over the years is a sign of continued demand for Malawi’s tobacco, allaying fears of a successful anti-tobacco campaign. According to the report, he said the country needs to be aggressive to sell local burley on the global market as there is unique demand for Malawi’s burley that has less contaminants and is a good filler in cigarette manufacturing.
At this stage, Chapola announced that the expression of interest from farmers has been well received as 53,000 growers have already registered compared to 41,000 last year.
According to the Organisation for Economic Co-operation and Development, Malawi exported tobacco worth USD 447 million in 2023, a slight increase from USD 435 million in 2022.
At the same time, the expected tobacco volume has increased by 23 per cent to 220 million kgs of tobacco compared to last year’s 177 licensed quantities.
Buyers have now indicated a 12 per cent increase in demand to 212 million kg, compared to 190 million kg last year, when farmers only supplied 133 million kg.
In the 2024 marketing season, the country saw a 40 per cent increase in total sales, rising from USD 283.76 million in 2023 to over USD 396 million, the highest in over a decade.
Der Beitrag Burley tobacco in high demand erschien zuerst auf Tobacco Journal International.