Thriving in Turbulent Times: Navigating Malawi’s Tobacco Industry for Sustainable Growth
Key Business Points
- Malawi’s 2025 tobacco marketing season is underperforming, with an 18% decline in revenue compared to the same period in 2024.
- The total volume of tobacco sold has decreased by 5.5% to 72.7 million kg, with an average price of $2.45 per kg.
- Burley tobacco remains the dominant type, accounting for 68 million kg of total sales, while flue-cured and dark-fired tobacco sales have also been reported.
Malawi’s tobacco marketing season is off to a sluggish start, with significant declines in earnings, volumes, and average prices recorded in the opening eight weeks of sales. According to statistics from AHL Tobacco Sales Ltd, the country has generated $178.4 million from selling 72.7 million kg of tobacco between April 9 and May 30. This represents an 18 percent revenue drop from the $218.7 million earned during the corresponding period in 2024. The decline in revenue is a concern for the country’s economy, as tobacco is Malawi’s primary export commodity.
The total volume of tobacco sold has also decreased, falling from 76.9 million kg sold in the first eight weeks of 2024 to 72.7 million kg this year. The overall average price has weakened to $2.45 per kg from $2.85 in 2024, reflecting broader market pressures. Market efficiency is also being affected by operational bottlenecks, with farmers calling for an increase in the number of bales sold per day to reduce the turnaround period. Burley tobacco maintained its dominance, accounting for 68 million kg of total sales during the review period, while flue-cured tobacco contributed 4.2 million kg and dark-fired tobacco sales exceeded 500,000kg.
In week eight alone, covering May 26 to May 30, sales of 13.6 million kg across all tobacco types generated $34.8 million at an improved average price of $2.56 per kg, slightly above the season average. The recent price improvements are a positive sign, with farmers presenting higher-quality upper leaf tobacco. However, Tama Farmers Trust Chief Executive Officer Nixon Lita highlighted the need for operational efficiencies to be addressed to improve market performance. The sluggish performance contrasts sharply with 2024’s successful season, which saw over 133 million kg of tobacco sold for nearly $400 million in proceeds across 16 weeks of trading. As Malawi’s business community looks to the rest of the season, it is clear that addressing the current challenges will be crucial to achieving a successful outcome.
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