Tobacco.org

Malawi's tobacco earnings jump 88 pct this year  

Malawi expects revenues from tobacco, its main foreign exchange earner, to rise 88 percent this year to about $348 million from $185 million last year, officials said on Wednesday.

Tobacco accounts for over 70 percent of exports and 15 percent of its gross domestic product (GDP) in this poverty-stricken southern African country.

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• MKWAMBISI: Of child trafficking and child labour in Malawi 

Over the last few months, we have been involved in several studies on child labour, child trafficking and other issues affecting orphans and vulnerable children in Malawi. Covering almost three quarters of the country, we have a larger picture of what child labour is at national level. The stories we have uncovered are so pathetic, the conditions pitiable and wretched, the work involved is abject.

I stand on this forum to share with the reader the stories as per the studies, the strategies and programmes undertaken by individuals and organisations. I will then bring to the attention of policy makers what is lacking on our agenda before suggesting some strategies that we need to embark on to assuage these sufferings.

Children as young as 10 years are engaged as child labourers mostly in tobacco estates in Mzimba, Rumphi, Mangochi, Kasungu and Mchinji. These future leaders of Malawi are trafficked from Mulanje, Thyolo, Lilongwe, Dedza, Salima and Ntcheu. . . .

The government could express more commitment by approving some of the bills and policies aimed at reducing this problem. Bold and new anti trafficking legislation is required and consider the introduction of child registration as a priority for child protection. Capacity building for law enforcers is required including those in immigration and courts. Let the communities be involved including the children themselves in programme planning and policy formulation. Referral networks by stakeholders could be enhanced at national and community level.

Finally, the President, cabinet, heads of department could take a reading role in raising awareness on this social problem. Otherwise, we will have 6,500,000 child labourers rather than Section 65. See my tears.

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MSB predicts a stable, stronger Kwacha on good tobacco proceeds 

Malawi Savings Bank (MSB) says economic outlook for the upcoming months looks promising . . .

The bank said in its Market Report for June released on Thursday the foreign exchange situation is likely to improve further attributable to the on going tobacco-marketing season and improved prices. . . .

MSB said the favourable situation is likely to continue in the short and medium term as the economy passes through the much more favourable marketing season for tobacco.

According to the Tobacco Control Commission, proceeds from tobacco sales as at 27th June 2008 had cumulated to US$251.4 million, with volumes sold amounting to almost 106 million kilogrammes.

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TV Pick of the Day: Duncan Bannatyne Takes On Tobacco 

1st July 2008

By BBC2, 9pm

Duncan Bannatyne is on the warpath tonight in a special BBC2 documentary.

In DUNCAN BANNATYNE TAKES ON TOBACCO, the Scottish entrepreneur reveals the alarming rise in under-age smoking amongst kids in Africa - and points the finger of blame directly at British American Tobacco and their marketing tactics.

In one primary school class that Duncan visits in Mauritius, non-smokers are actually in the minority.

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• Critic's choice - This World: Duncan Bannatyne Takes on Tobacco (BBC2) 

Entrepreneur and Dragons' Den hardman Duncan Bannatyne explores the lamentable world of tobacco advertising in the developing world.

He visits Mauritius, Nigeria and Malawi, investigating the sales strategy of British American Tobacco - a company which made a £2.1billion profit last year.

Bannatyne believes he's found evidence that suggests BAT is breaking its own code of conduct about the accessibility of cigarettes to children, and after researching the situation in each of the three African countries, he returns to London to confront BAT with his findings.

However, Bannatyne fails to create a sense of urgency, even though he talks to people who started smoking at the age of nine.

The programme looks at length at what young Africans know about the dangers of smoking, and finds that some schoolchildren smoke because they believe it "makes them wise".

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• British American Tobacco denies breaking youth code on cigarette sales 

Tobacco giant British American Tobacco PLC has denied claims made by a BBC investigation that it is breaking its code regarding the sale of single cigarettes, seen as more attractive to child smokers.

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• Tobacco giant 'breaks youth code' 

covering the sale of cigarettes to young people in Africa.

An investigation for the BBC has found evidence in Nigeria, Malawi and Mauritius of rules being broken.

In particular, BBC Two's This World found single cigarettes - which campaigners say are attractive to young people - were being promoted and sold.

The company involved, British American Tobacco (BAT), says it does not encourage the sale of single "sticks".

During the investigation carried out for BBC Two's This World programme, British businessman Duncan Bannatyne also discovers tactics used by BAT which circumvent bans on advertising and raise the profile of cigarettes in countries where doctors are warning of a potential epidemic of smoking-related diseases.

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Malawi Centralizes Payments for Tobacco, Daily Times Reports 

All foreign currency payments for tobacco sold in Malawi will now be made through the central bank, the Daily Times said, citing a statement from the country's First Discount House Ltd.

Tobacco earnings, which are paid in U.S. dollars, previously went direct to commercial banks in the southern African nation, the Lilongwe-based newspaper said on its Web site.

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Malawi tobacco rotting on auction floor 

Wildly fluctuating prices have closed Malawi's tobacco commodity auction floors.

The tobacco industry has been in turmoil since prices reached the phenomenal price of 11 dollars per kg and then dropped.

The value of the leaf has gone down to between 2.30 dollars and 60 cents for the same quality crop.

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• Tobacco industry stands firm on DDT  

Major players in the tobacco industry in the country have stressed that the re-introduction of Dichloro-Diphenyl-Trichloroethane (DDT) by the health sector to curb malaria would threaten sales of tobacco on the global market.

This follows Ministry of Health interest in 2006 to bring back DDT which is one of the known synthetic pesticides to be used in the country to halt reproduction of mosquitoes which spread the killer disease.

During a media briefing in Salima on Sunday Executive Director for Agricultural Research and Extension Trust (Aret) Ibrahim Phiri said chances for DDT contamination to tobacco remain very high in rural areas where tobacco is mostly grown.

"As an industry we have been consulted on the use of DDT especially in rural areas where malaria is wrecking havoc but there is a conflict here as health officials are trying to protect us from this killer disease while we are looking at protecting the country's major forex earner from being shunned on the international market," said Phiri.

He added that Malawi's tobacco may be threatened if the country accepts DDT re-introduction as there would be scepticism on whether the leaf is pure.

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Turmoil As Tobacco Prices Fluctuate 

Malawi's tobacco industry has been in turmoil after wildly fluctuating prices led protesting farmers to force the closure of the auction floors. . . .

However, the exceptional prices did not last. On the second day, the flicker of hope died. Prices have since fluctuated, with the value of the leaf dropping to between 2.30 dollars and 60 cents for the same quality crop.

The statutory Tobacco Control Commission's (TCC) general manager Godfrey Chapola confirmed that prices started off high because of a tobacco shortage on the global market. He said that that some countries which grow tobacco have stopped while others have reduced production levels, causing consumption to be higher than supply.

The fluctuation in prices has affected farmers badly.

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• Tobacco firm assigns K400m for Malawi schools 

An international tobacco firm, Philip Morris, has set aside K400 million (US$3 million) for the construction of 100 school blocks across the country in the next five years, starting this year, to help improve Malawi's education standards.

The US based tobacco company, which also buys Malawi's leaf, has already channeled K7 million to Total Land Care, a local NGO which would be executing the project in conjunction with district assemblies and education official among others.

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China to Invest in Malawi Tobacco Processing; Crop to Increase 

China is expected to invest in Malawi's tobacco industry this year to add value to a crop that generates 60 percent of the southern African nation's export income, said Trade Minister Henry Mussa.

``The Chinese have assured us that they'll be investing in tobacco-processing companies so that we add value to our crop instead of exporting raw tobacco,'' Mussa said in an interview today from the capital, Lilongwe.

China established diplomatic ties last month with the nation, Africa's biggest producer of the burley variety of tobacco, after Malawi severed links with long-time ally Taiwan.

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Tobacco sales resume Wednesday 

Sales of tobacco are expected to resume on Wednesday, a week after government ordered suspension of the sales in all the country's four Auction Floors following continued disagreements between buyers and farmers over prices.

Tobacco Control Commission (TCC) General Manager Dr Godfrey Chapola said today the sales of the commodity will resume on Wednesday following fruitful discussion on the price of the commodity that took place last Thursday, April 18, between all stakeholders in the tobacco industry.

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EDITORIAL: The fight at auction floors is uncalled for 

The fight between farmers and guards at the opening of long awaited sales of tobacco at Mzuzu Auction Floors Monday is as shameful as it is primitive. . . .

We recall that a report by one eminent lawyer Clive Stanbrook specifically pointed out about a cartel in the tobacco industry who connive on prices which to offer to farmers. Maybe the issues surrounding the cartels have not yet been resolved and the suspensions could just be a tip of the iceberg.

All in all, commercial disputes like the low prices of tobacco cannot be sorted out through a baton stick or a fist. The parties involved should calm down around a table and resolve their issues amicably.

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