Increase production, tobacco farmers told
By Business Reporter
THE Tobacco Board of Zambia (TBZ) has challenged tobacco farmers in Zambia to increase production of the crop from the current 30 million kilogrammes to over 50 million kilogrammes by 2011.
Board chairperson, Robinson Manase issued the challenge during the official opening of the Tobacco Association of Zambia sales floor in Lusaka yesterday.
Mr Manase said tobacco production levels were considered to be low and therefore, there was need for further exploration and utilisation of the vast natural resources to boost production of the crop.
He said Zambia was capable of producing more tobacco and other cash crops for the country to become a leading producer in the region.
Mr Manase also challenged the tobacco buying and processing companies to ensure value addition to the Zambia produced tobacco through the processing of the product within the country.
“TBZ will not like to hear that all the tobacco produced in Zambia is being exported in its raw form because, by so doing, we will be exporting jobs and income,” he said.
Mr Manase said the TBZ would continue encouraging investment in the Zambian tobacco industry.
“Individuals and companies interested in establishing value addition will be welcome as complete dependence on other countries for processing has become a challenge in the current global economic situation,” he said.
Mr Manase said last year the tobacco industry produced a total of 30.4 million kg valued at US$71.5 million (K400 billion).
He said production was significantly higher than the production in the previous 2007 season which recorded a total of 26.4 million kg of tobacco valued at $49.5 million (K178 billion).
Mr Manase said that about 33 per cent of the total tobacco produced in Zambia was sold through the Tobacco Association of Zambia (TAZ) Lusaka sales floor.
He said the board was aware that the industry faces challenges of limited tobacco production sponsorship, increasing cost of production, especially the cost of fertiliser, fuel, labour and machinery.
And TAZ president, Bright Mwanguku said his association was concerned with the increase in floors across the country which, if not controlled or monitored would render farmers vulnerable to merchants who may have misunderstood the free market system in Zambia.
Mr Mwanguku said the tobacco industry accounts for almost 3 per cent of the foreign exchange earnings in the country.
The four major tobacco buying merchants in Eastern Province have managed to buy 3 million tonnes of tobacco worth K20 million in Chipata and Chadiza districts in one month.
The merchants who include Africa Leaf, Sun Bridge, Pemba Leaf and Alliance One International have bought the tobacco in four floors in the two districts.
Eastern Fodya Association of Zambia (EFAZ) vice-chairperson, Chishala Chilufya said in Chipata yesterday that the tobacco was procured from the time the floors opened on 30th March upto 12th May this year.
Mr Chilufya said a total of 3,049,559 kilogrammes have been bought, Alliance One alone bought 2,772,829 which he said was the largest volume of tobacco bought by a buyer.
Meanwhile, the four major tobacco buying merchants in Eastern Province have managed to buy 3 Million tonnes of tobacco worth K20 million in Chipata and Chadiza districts in one month.
The merchants who include Africa Leaf, Sun Bridge, Pemba Leaf and Alliance One International have bought the tobacco in four floors in the two districts.
Mr Chishala Chilufya said the tobacco was procured from the time the floors opened between March 30 to May 12 this year.
He said a total of 3,049,559 kilogrammes have been bought, Alliance One alone bought 2,772,829 which, was the largest volume of tobacco bought by a single buyer.
