Philippine tobacco output up

The volume of locally traded tobacco leaves reached 66.6 million kilos in 2013, up 2.8 percent over the previous year, according to the National Tobacco Administration.

Farmgate value, on the other hand, reached P4.6 billion last year, according to NTA data, almost the same level as in 2012.

NTA chief Edgardo Zaragoza said in a statement the agency was satisfied with the state of preparedness among industry stakeholders ahead of this year’s trading season, which opened as early as the third week of February.

The NTA was optimistic about the industry’s growth prospects considering the increase in floor prices.

For 2014 and 2015, the agency has approved a P6 increase for a kilo of Virginia leaves as well as P3 to P10, respectively, for Burley and native tobacco.

The high-grade Virginia leaf now fetches P78 a kilo while the similarly high-grade Burley leaf gets P61 and native leaf, P66.

These are mainly used in the production of cigarettes.

“There is plenty of room for growth of local production of tobacco,” Zaragoza said, estimating that local production will remain high considering the continued commitment of buyer-firms and manufacturers to purchase all of the farmers’ produce for the crop year.

The NTA earlier granted requests for the official opening of 11 licensed trading centers during the early weeks of the trading season in the Ilocos provinces.

The NTA’s regulation department, following the rules on the trading of locally grown leaf tobacco, has issued licenses to a total of 54 trading centers—of which 21 are for Virginia type in Ilocos Sur, Ilocos Norte, and La Union.

Also, the agency has issued permits to purchase to 10 wholesale tobacco dealers as well as certificates of authority to buy leaf tobacco to 288 field representatives.

In October 2013, the NTA inaugurated the P165-million food processing and trading facility meant mainly to link farmers to their market without going through middlemen.

The facility is expected to help lower production cost for tobacco growers, particularly in buying agricultural inputs and selling their products.

Also, the facility also includes an abattoir that can process 200 head of livestock daily as well as a chicken dressing plant with a throughput of 200 head of fowl per hour.

Earlier, Zaragoza said an additional P35 million had been allocated as working capital for the AgriPinoy center, which the NTA wants 7,700 tobacco growers to use.