To­bacco Ex­ports Earns Zam­bia US$100 mil­lion

Zambian Business Times - - AGRO COMMODITIES -

TO­BACCO ex­ports earned the Zam­bian mar­ket ex­port dol­lars to the tune of ZMW991mil­lion (about US$100 mil­lion), al­most at the same level of earn­ings from Sugar ex­ports. This is ac­cord­ing to in­for­ma­tion com­piled by ZBT anal­y­sis and cor­rob­o­rated to the Cen­tral sta­tis­ti­cal of­fice ex­port data.

To­bacco has made the top five agro ex­port list by value for year ended De­cem­ber 2017, comp­ing out as the third high­est ex­port dol­lars’ earner for Zam­bia in the Agro space.

Ear­lier in 2017, then Min­is­ter of Agri­cul­ture Dora Siliya cur­rently trans­ferred in a cab­i­net reshuf­fle as In­for­ma­tion Min­is­ter, an­nounced in May that Bur­ley To­bacco pro­duc­tion had re­bounded with about 30% in­crease is pro­duc­tion.

She had an­nounced that To­bacco pro­duc­tion had jumped from about 6,500 met­ric tonnes to about 8, 400 met­ric tonnes, while Vir­ginia to­bacco pro­duc­tion largely re­main­ing flat at about 12,000 met­ric tonnes.

The To­bacco in­dus­try in Zam­bia has re­ceived a fur­ther boost af­ter the Bri­tish Amer­i­can To­bacco (BAT) un­der­took the con­struc­tion of a USD15mil­lion to­bacco pro­cess­ing plants in Lusaka South eco­nomic zone.

This was fol­lowed by an­other global to­bacco com­pany, Roland Im­pe­rial to­bacco an­nounc­ing plans to con­struct a To­bacco pro­cess­ing plant val­ued at USD150mil­lion in Chipata, with con­struc­tion ex­pected to take off this year 2018.

This in­dus­trial buy­ing and pro­cess­ing ca­pac­ity be­ing cre­ated in Zam­bia fol­low­ing some im­port tax­a­tion changes on fin­ished cig­a­rettes is ex­pected to lead to bet­ter value chain cre­ation, mar­ket com­pe­ti­tion and bet­ter op­por­tu­ni­ties for price dis­cov­ery for farm­ers in Zam­bia.

To­bacco is mostly grown by large com­mer­cial farm­ers. But com­mod­ity buy­ing com­pa­nies such as JTI and co­op­er­a­tives to fa­cil­i­tate bet­ter mar­ket link­ages are be­ing pur­sued to en­sure a sus­tain­able value chain is cre­ated from farm­ing, to pro­cess­ing, to mar­ket­ing and fi­nally to ex­port mar­kets.

Newspapers in English

Newspapers from Zambia

© PressReader. All rights reserved.