Tobacco farmers are considering mocambiqie as their market?

BusinessTCC warns tobacco growers by Moses Michael-Phiri, 01 March 2007 - 03:49:03 With the countdown to the opening of this year’s tobacco sales fast approaching, the Tobacco Control Commission (TCC) has warned growers in the country against being carried away by claims from some unscrupulous traders that the leaf fetches better prices in Mozambique compared to Malawi.
TCC general manager Godfrey Chapola told tobacco farmers in Mangochi during a recent Tobacco Association of Malawi (Tama) meeting that tobacco prices in Mocambique were not different from those offered here in Malawi.
Chapola was responding to the farmers’ question on why tobacco prices in neighbouring countries such as Mozambique and Zambia were better than those at the local auction floors. President Bingu wa Mutharika also expressed the same concern last year.
“Good and high quality tobacco fetches a good price everywhere. Likewise, low and poor quality tobacco is also offered a low price. There are no differences... it is the same as in Malawi.
“In fact, those farmers who sell their leaf across the borders only tell the good side of their story. They do not reveal when they have sold their crop at a low price, safuna kuwoneka kupusa [they do want to look stupid],” he said.
Chapola further warned farmers that it is also expensive to sell their tobacco in Mozambique when costs such as transport and accommodation are factored in.
“We have the figures for both Malawi and Mozambique. In fact, some of us have been in Mozambique and you should not be cheated that prices are better over there,” he said.
Chapola, however, told farmers to bank their hopes on the on-going negotiations between government and buyers.
He also said government is seeking new buyers and that a new tobacco buying company—Premium Tama Limited—was tipped to join the tobacco market this year.
Efforts to speak to Seneo Taateagam, first counsel at the Mozambican Embassy in Lilongwe, for his comment on tobacco prices in their country proved futile as his phone went unanswered on Tuesday.
When farmers resort to selling the crop illegally to neighbouring Mozambique and Zambia, Malawi loses millions of kwachas in foreign exchange.
Last year, it was reported that at least 40,000 farmers gave up growing tobacco, opting for other more profitable ventures.
TCC estimates that this year Malawi’s over-all burley tobacco production has dropped by eight percent.
Estimates indicate that Malawi will produce 114 million kilogrammes of burley tobacco, 27 million of kilogrammes of flue-cured tobacco and about one million for dark cured tobacco which include Northern Dark Fired (NDF) and Southern Dark Fired (SDF) tobacco.
The demand for Malawi burley tobacco from buyers this year has been pegged at 159 million kilogrammes, 27 million kilogrammes for flue-cured and 4.5 million for dark fired tobacco.
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