Monday, January 14, 2008

Malawi tobacco output higher

(Fin24) - Tobacco production in Malawi is expected to rise to 150 million kilograms this season, encouraged by higher prices and good rains, says the Tobacco Association of Malawi (Tama).


Tama president Charles Mwamsambo told Reuters more farmers had signed up to grow tobacco this season because of a number of factors, key among them an anticipated spike in prices that is likely to encourage tobacco growers to lift production.


The expected increase in prices follows a slump in production last year, when growers only managed production of only 140 million kilograms, down from 158 million the previous season.


"There are several factors like the motivation that farmers have from last year's good prices: more buyers on the market and good rains that will result in high production of about 150 million kilograms this growing season," he said.


More farmers


Mwamsambo said Tama had registered 27 000 new farmers this season compared to only 10 000 new growers signed up last year.


Tobacco accounts for over 70% of Malawi's exports and 15% of its gross domestic product, but for the last two years low prices have led to cuts in production.


About 2 million of the country's 13 million people depend on tobacco and related industries for their livelihood.


The biggest auction floors last year saw farmers sell their crop between $1.70 and $1.60 per kg for the first time in several years, after President Bingu wa Mutharika ordered buyers to offer better prices or leave the country.


 

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