Alliance One settles 2026 tobacco grower payments
MOROGORO: ALLIANCE One Tobacco Tanzania Limited (AOTTL) has completed 100 per cent payments to tobacco growers and other stakeholders for the 2026 tobacco marketing season, disbursing 169.7bn/- (64.7 million US dollars) across the tobacco value chain.
The company said 154.2bn/- (58.7 million US dollars) was paid directly to growers for tobacco purchases, while the remainder covered statutory and industry-related payments, including district cess, cooperative union dues, Tobacco Board regulatory fees, research fees and other council levies.
Speaking during a factory study tour by representatives of the Western Tanzania Tobacco Cooperative Union (WETCU) in Morogoro over the weekend, AOTTL Corporate Affairs Manager and Company Spokesperson, Advocate John Magoti, said completion of the payments reflected the company’s commitment to supporting farmers and strengthening a transparent, efficient and sustainable tobacco value chain.
“Timely payment is critical to growers and their families. It enables farmers to meet household needs, settle production costs, reinvest in farm operations and prepare for the next crop season,” he said.
He said AOTTL also supports growers through contract farming, agronomic assistance, training and improved tobacco varieties aimed at increasing productivity, quality and resilience to climate and disease challenges.
According to Advocate Magoti, the company’s supply chain supports more than 100,000 tobacco-growing households across Tanzania, contributing to rural livelihoods, household incomes and economic development. AOTTL is also investing in renewable energy and environmental conservation.
Its Kingolwira processing facility operates a 570-kWp rooftop solar power system, while increased use of Compressed Natural Gas (CNG) is helping reduce its environmental footprint.
Advocate Magoti said the company had established approximately 1,784 hectares of forest plantations under the Joint Forest Management (JFM) programme in partnership with the government, communities and individual stakeholders.
“Through these initiatives, more than four million trees have been planted, contributing to forest restoration efforts and ensuring a sustainable supply of wood fuel for future generations,” he said.
Under the Tobacco Afforestation Programme (TAP), AOTTL works with primary societies and growers to promote tree planting, sustainable land management and reduced pressure on natural forests.
The company also invests more than 500m/- annually in community development programmes covering education, clean water, environmental conservation and community wellbeing.
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Meanwhile, WETCU delegation members described the study tour as valuable in understanding tobacco processing and quality requirements.
WETCU Leaf Woman, Ms Hanifa Nalola, said the visit highlighted the industry’s contribution to employment, particularly for women, while Agronomist Mr Walwa Msuka said the lessons would help improve grower education on crop handling, cleanliness and prevention of contamination.
He said strengthening such practices would help farmers produce high-quality tobacco that meets market requirements.
AOTTL’s grower support also includes measures aimed at improving productivity and strengthening the quality of tobacco supplied to its processing facilities.
The company works with growers and primary societies to promote better farming practices and ensure compliance with quality requirements throughout the production cycle.
Advocate Magoti said strengthening the tobacco value chain required continued collaboration among growers, cooperatives, processors and other stakeholders, particularly in improving crop quality, reducing production challenges and ensuring the sector remained sustainable for future seasons.
