Despite a USD 0.52 decline in global tobacco prices per kg, Tanzania farmers are being urged to accept the new lower price for the 2011 season, which is described by representatives of local cooperatives as “not being that bad.”
Last year, farmers got USD 2.12 for every kg they sold. The outlook for 2011 is such that they can only expect around USD 1.60 per kg, according to the Chairman of the Western Zone Tobacco Cooperatives Union, Alcado Ilagila.
Briefing the press on tobacco prices for season 2011 at the weekend, Ilagila said that they have found a market for 60 million kgs of Tabora’s tobacco, but had only secured a unit price of USD1.60 despite negotiations with buyers.
There is a relative increase in farm output per kg this year, according to Ilagila, who attributes this higher productivity to farmers being enticed by the promise of record sale prices, and lower input costs.
Last year, for instance, the price of one bag of NPK was USD49.30 and has since gone down to USD43.34 in 2011, according to him.
He implored local farmers to show willingness to work with them on this, saying that the price could have become worse.
According to him there is a secure market for all of the region’s tobacco this year. “It will all be bought, so don’t worry,” he promised.
However, he cautioned them against cutting dried tobacco with lower grade materials, urging local leaders to work to ensure the crop remains unadulterated. Higher crop grades are the only way to secure a higher purchase price, he said.
Ilagila further cautioned against adulteration by tobacco blenders, saying farmers will not stand for this. He instead asked them to be willing to have their operations inspected to ensure only the highest grade tobacco makes the cut.
Besides, the cooperative boss asked local buying unions to pay tobacco farmers fair price for their produce, saying the Union will take legal action against any form of price discrimination.
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