Mkwawa Leaf Tobacco, a new firm, is targeting to buy one-third of the entire country’s tobacco leaves production in this season.
The Morogoro-based firm plans to purchase 45,000 tonnes of tobacco leaves this season which kicked off late last month out of a projected 125,592 tonnes in 2022/23.
The Mkwawa Leaf Tobacco owner Mr Ahmed Huwel said that the goal is to start at a low pace before increasing the amount to 90,000 tonnes next season before reaching 130,000 tonnes —countrywide.
“We are a new firm in the country. Apart from being new, we are the major buyer of tobacco leaves and subsequently targeting to purchase 265,000tonnes tobacco leave during the three purchasing seasons, starting this year,” Mr Huwel said during the inauguration of 2022-2024 purchase seasons at Nsimbo Primary Cooperative Society at Nsimbo area in Katavi.
Katavi alone is projected to harvest some 11,700 tonnes of tobacco leaves this year.
Additionally, Mkwawa will collaborate with the government on a tree-planting campaign while working hard to fight any form of child labour in the tobacco sector.
Tanzania Tobacco Board (TTB), Crop Development and Regulatory Service Manager Oscar Simwanza, told ‘Daily News’ yesterday that in 2022/23 purchasing season —the projection 125,592 tonnes.
“This season we anticipate the country will produce those tonnes after a thorough evaluation of the crop production chain.
“We are optimistic the projected tonnage will be attained,” Mr Simwanza said.
He, further, said that eight tobacco companies are licensed to buy the leaves this season that expected to end in early August.
Launching the event, the Katavi Regional Commissioner, Ms Mwanamvua Mrindoko, said the government envisages reviving the tobacco value chain to drive away the previous hiccups the sector passed through.
“We shall stand together with the new firm to revive the crop value chain, including environmental conservation by ensuring that tobacco curing is never depleting natural forests,” Ms Mrindoko said.
Mkwawa purchases tobacco from the contracted growers and then re-grades it at their processing plants to better define the leaf characteristics and add value.
According to Tanzania Tobacco Industry Outlook 2022–2026 report the country’s tobacco output is projected to reach 140,000 metric tonnes by 2026, up from 124,000 metric tons in 2021.
According to the outlook report, the country experienced a growth of 2.1 per cent year-on-year is in line with an average growth rate of 3.2 per cent since 1966.
Tanzania ranked ninth in 2021 after Bangladesh overtook with a production of 124,000 tonnes. India, Brazil, and Zimbabwe respectively ranked second, third, and fourth.