Tobacco Production on the Rise
The Tanzania (a country twice the size of California, is located in East Africa, just south of Kenya) government has said that it will enlarge tobacco production from 58,702 tonnes of the previous year to 60,000 in the current 2009/2010.
In general Tanzania produced only 2 percent of world tobacco production in the past but now it has been steadily increasing its production. For example, between 1984 and 1992 the area under tobacco increased by 66%. Recently, Tanzania overtook South Africa to become Africa’s third biggest producer of tobacco, after Zimbabwe and Malawi. Currently, there are about 90,000 acres of land under tobacco.
Mr. Graham Kayers, Managing Director of the Alliance One Tobacco Tanzania Ltd (AOTTL), said that tobacco production in the country has increased by 167 percent during the last eight years. He added that production has risen to 59 million kilograms this year from 22 million kilograms produced in 2000. This growth has resulted in local farmers to get an average of 300,000/- per hectare to 500,000/ - this season,” he explained during the occasion to mark the 10th anniversary of the company held in Morogoro.
Mr. Kayes noted that during the past ten years, the company’s progressing capacity has also increased by 175 percent from 9.3 million kilograms in 2000 to 25.6 million kilograms this year. He said that the quality of local tobacco has also improved with the usual price to the grower rose from $0.50 per kg to USD 2.50 per kilogram of tobacco.
According to Mr. Kayes, the average productivity per hectare has doubled from 600kg/ha ten years ago to 1,250kg/ha this year. He said the primary investment of AOTTL was more than USD 40 million (52 billion/-), making its factory one of the best tobacco processors in Africa.
In general growing tobacco in Tanzania is risky. Because many small farmers just don’t have the capital to buy the fertilizers and insecticides which have shot up in price since the government began implementing the IMF/World Bank economic program. So they borrow. But so much depends upon the rains. If the rains don’t come and they have borrowed from the big tobacco growers or the Tanzanian Cigarette Company, they have to find a way to pay back the loan. Each creditor must have 2 guarantors (usually neighbors) who are responsible for their debt if they can’t pay it back. If they do neglect, these guarantors then have to sell their possessions or their property.
