Exporters have welcomed with a lot of interest the new Chinese market for tobacco as an opportunity that will contribute to the economic growth as well as increased income to farmers.
This was said in Dar es Salaam over the weekend by the Tanzania Exporters Association (TANEXA) Executive Director, Mr Mtemi Laurence in an interview with the 'Daily News.'
"With millions smokers, China will provide a reliable market for the Tanzania's tobacco and reduce dependency on the traditional western markets," he remarked. Recently, it was revealed that the Least-developed tobacco exporters were likely to lose the traditional markets following the European Union (EU) plan to make cigarettes less attractive to new smokers.
The move is expected to impact negatively on the sector's growth which, according to a 2010 World Trade Organisation (WTO) survey, provides more than 60 per cent of the foreign earnings.
Mr Laurence said TANEXA has started to undertake research on the value chain of tobacco production to identify market constraints and establish the demand that will determine supply and price of the product.
He also said TANEXA will look for the need to maximise the surrounding tobacco markets in the region, like the Democratic Republic of Congo (DRC), South Sudan and Somalia. The research on the value chain of tobacco production will help the government to adjust itself in the provision of farm inputs, extension officers and other facilities which are necessary for sustainable farming.
Last week, the Minister for Agriculture, Food and Cooperatives, Eng. Christopher Chiza said an agreement on phytosanitary requirements for tobacco leaves to China was an important move that will assure farmers with a new and reliable market.
The agreement signed between two governments was on Phytosanitary Requirements for Tobacco Leaves from Tanzania to China between the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ). "By signing the agreement, it gives an assurance that they will buy tobacco from Tanzania.
This move will remove doubts created by traditional markets in the West where there are threats of banning tobacco importation," he said. Mr Chiza said in the 2010/11 season, farmers produced 130,000 tonnes but only 90,000 tonnes were procured. The next season saw declining production due to losses incurred.
via Tanzania Daily New