Optimizing Tobacco Yields: Strategic Guidance for Malawi’s Agricultural Sector
Key Business Points
- Tobacco farmers in Malawi are advised to adhere to Tobacco Commission (TC) quotas in the 2025/26 growing season to avoid over-production and elongating the season.
- The 2024/25 Tobacco Marketing Season will close on October 24, 2025, making it one of the longest, and farmers are urged to produce according to their quotas to avoid similar situations in the future.
- Tobacco remains a crucial crop for Malawi’s economy, contributing over 50% to the country’s foreign exchange earnings and 13% to the economy, with the country earning $532 million from tobacco sales in the current season.
The tobacco industry in Malawi is a significant contributor to the country’s economy, and the latest developments in the sector are crucial for business owners and entrepreneurs. The Tama Farmers Trust has advised tobacco farmers to strictly adhere to TC quotas in the 2025/26 growing season to avoid over-production and elongating the season. This call comes after the 2024/25 Tobacco Marketing Season, which opened in April, is set to close on October 24, 2025, making it one of the longest seasons on record.
According to Tama Farmers Trust president Abiel Kalima Banda, farmers should ensure that they produce according to their quotas to avoid elongating the season and affecting preparations for the next growing season. The TC has indicated that the country has produced over 200 million kg of tobacco, with farmers assured that the remaining volumes will be sold. The Ministry of Agriculture has authorized the Smallholder Farmers Fertiliser Revolving Fund of Malawi (SFFRFM) to buy the tobacco that has been left by traditional buyers, ensuring that farmers receive a reliable and sustainable market for their crop.
The current season has seen Malawi earn $532 million from tobacco sales, with an average price of $2.49 per kg. This is a significant increase from the previous season, where the country earned $396 million from selling 133 million kg of tobacco at an average price of $2.98 per kg. As ndalama za malawi (Malawi’s money) continues to be influenced by the tobacco industry, it is essential for farmers and businesses to be aware of the trends and developments in the sector. The government has reaffirmed its commitment to providing support to the tobacco-growing community, and zinthu zopusazi (business opportunities) in the sector are expected to continue growing.
The production estimate survey initially projected output at 174.4 million kg, but the country has exceeded this projection, selling 214 million kg of tobacco. The improved weather conditions towards the end of the rainy season have been attributed to the increased output. As the tobacco industry continues to play a vital role in Malawi’s economy, wamoto waku malawi (Malawi’s entrepreneurs) must be aware of the opportunities and challenges in the sector to make informed business decisions. With the tobacco market expected to continue growing, it is essential for businesses to be prepared to capitalize on the opportunities available.
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