NTA reports increase in tobacco output

MANILA, Philippines - The National Tobacco Administration (NTA) yesterday reported an increase in tobacco production for crop year November 2010 to August 2011 to 78,404,166.85 million kilograms with a value of P5.373 billion.

The NTA’s original production target was 71.4 million kilos which it eventually raised to 77 million kilos.

For crop year 2011 to 2012, NTA administrator Edgardo D. Zaragoza is projecting an even higher production of 80 million kilos.

Zaragoza is projecting a conservative production of just 80 million kilos, even though he is optimistic that production will once again be higher.

At the same time, Zaragoza announced that an acceptable floor price has been agreed upon with tobacco farmers allowing for increases in the price for Virginia tobacco leaves by P6 for double A and P5 for the other grades.

Likewise, Zaragoza said, it was also agreed to increase the price of reject tobacco from P28 to P40 per kilo.

On burley and native tobacco, Zaragoza said, the historical increase of P2.50 per year has been increased to P7 per kilo.

Zaragoza pointed out that there has been a consistent increase in prices in the past few years, on average a P5 increase, and for native P2 per kilo.

Tobacco production for crop year 2009-2010 was 65.392 million kilograms.

The increased tobacco production projection for this crop year is based on the expansion of tobacco production areas in Regions I and II to 36,593 hectares from the previous planted areas of only 32,762 hectares.

Annual demand for tobacco leaf, as monitored by the NTA from 2008 to 2010, Zaragoza reported, amounted to 98 million kilos dry weight (DW) or 163 million kilos green weight (GW) for local manufacturing.

Annual demand for tobacco leaf for export, Zaragoza said is 29 million DW or 48 million kilos GW.

Despite the higher tobacco production, though, Zaragoza said, the country still has to import tobacco leaves for blending.

Total leaf importation, Zaragoza said, amount to 80 million kilos DW or 133 million kilos GW.

Total export for 2010, Zaragoza said, is 33.452 million kilos for unmanufactured and 23.493 million kilos for manufactured.

The Philippines’s top five export countries for unmanufactured tobacco are the US, Belgium, South Africa, Korea and Malaysia.

For manufactured, the top five are Thailand, Korea, Singapore, Malaysian and Vietnam.

Demand though for cigarettes, Zaragosa admitted, has declined three per cent this year following an anti-smoking campaign.