Key Business Points
- Tobacco sales extension: The Tobacco Commission has extended the sales period at Chinkhoma and Lilongwe floors to August 22 and August 29, respectively, allowing farmers to sell their remaining leaf, a move that will help zinthu zinali kweni kupezeka (things to be sold out).
- Record earnings: Malawi has earned $497.9 million from the sale of 197.1 million kilogrammes of tobacco, with an average price of $2.54 per kilogramme, highlighting the nkhanza ya tobacco (importance of tobacco) to the country’s economy.
- Improved output: The Ministry of Agriculture attributes the increase in tobacco output to mavuto a chilima (good weather conditions), emphasizing the need for kuchigawirana kwa njira zaulimi (accurate crop estimates) to inform economic planning.
The Tobacco Commission’s decision to extend the sales period at Chinkhoma and Lilongwe floors is expected to benefit farmers who still have tobacco leaf to sell. This move is a welcome development for the wina a malawi (Malawian farmers) who have had a successful season so far. According to TC data, Malawi has earned a significant amount of money from tobacco sales, with the average price per kilogramme standing at $2.54. This is a zabwino (good) sign for the country’s economy, considering tobacco’s nkhani ya msisi (major role) in generating foreign exchange earnings.
The Ministry of Agriculture has attributed the increase in tobacco output to improved weather conditions towards the end of the rainy season. Osborne Tsoka, the deputy director of field crops, noted that the initial crop estimates were affected by dry spells, but the weather improved later on, allowing the crop to reach its potential. This highlights the importance of kulemeka kwa mavuto (good weather) in agricultural production. Agricultural extension expert Leonard Chimwaza emphasized the need for accurate crop estimates to give a clear picture to economic planners, considering tobacco’s critical role in the economy.
The initial market demand for this season was pegged at 213 million kg, while the second-round crop production estimate survey put the output at 174.4 million kg. Limbe Floors was the first to close on August 8, while Mzuzu Floors are expected to close on August 29. In comparison, last season, Malawi earned $396 million after selling 133 million kg of tobacco at an average price of $2.98 per kg. Tobacco remains Malawi’s main export, contributing more than 50 percent to the country’s foreign exchange earnings and 13 percent to the country’s gross domestic product, making it a zina la malawi (Malawi’s backbone).
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