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HomeAgribusiness2019 Tobacco production up 16%

2019 Tobacco production up 16%

Tobacco Board of Zambia – TBZ has projected this year’s (2019) tobacco production to grow by 16% and hit 36 million Kilograms (Kg’s) compared to 31 million Kg’s in 2018.

TBZ Chief Executive Officer James Kasongo has confirmed that this year’s marketing season for the tobacco industry has improved compared to previous years attributing the improvement to the new information system introduced by the board and the active participation by stakeholders in the industry.

Kasongo told the Zambian Business Times – ZBT in an exclusive interview that the introduction of the new system has enabled most farmers get registered hence making it easy to monitor the production.

When asked by ZBT on who the top Tobacco producers and out-growers in Zambia are for the 2019 season, Kasongo disclosed that the key contributors in the industry include Tombwe processing, Alliance One, Japan Tobacco International – JTI leaf, Pemba leaf and Copper leaf, who he said have greatly contributed to the growth of the industry and the country’s production at large.

The TBZ CEO commended the improvements in Zambia’s production to enhancements of the country’s marketing and pricing system of tobacco, which has increased in the past 6 years from US$2.39 per Kg to the current US$2.80 per Kg ,while barley ranged from US$1.20 per Kg to US$1.80 per Kg hence becoming competitive on the regional market.

He is however confident that Zambia will by the end of its production season in September close with a high production in tobacco as Zimbabwe had for the 2019 marketing season closed with an average of US$2.3 per Kg, Malawi at US$1.36 per Kg while Zambia is to date standing at US$2.16 per Kg.

He added that the industry has received support from government and players in the industry have also been very supportive as among the factors that have led to a good and conducive marketing season in 2019.

“In terms of production last year, we had 31 million Kg’s of tobacco while this year’s projection before the end of the marketing season is about 36 million Kg’s of tobacco. This is an indication that production is increasing. In previous years, we would have people waiting for 3 to 4 days just to have their tobacco bought but now we have quite a number of buyers in the industry,” he said.

Kasongo has further noted the need to stabilize, support and grow the small scale farmers in the tobacco industry as they constitute 90% of tobacco production in the country, hence its prudent that small scale farmers are organized into cooperatives where irrigation schemes can be delivered.

In addition, Kasongo has called for participation of stakeholders in the industry on the legislation saying there is need to recognize it and bring it to the level where it can be competitive in the region as other countries tend to have more players and volumes compared to Zambia.

TBZ has opened registration of growers of tobacco till 31st October 2019 and has called on small, medium and large scale tobacco growers to get registered as the board has already given licenses to buyers who have provided an opportunity for farmers to invest in the industry.

The set up of local tobacco processing plants by BAT and the planned expansion by Roland Imperial tobacco are now providing a ready market for local produce. Zambia has the suitable soils and weather conditions in some identified tobacco producing areas.