PMFTC to expand area, hike purchases

MANILA, Philippines -  PMFTC Inc., a joint venture between Philip Morris Philippines Manufacturing Inc. (PMPMI) and Fortune Tobacco Corp., is expanding its tobacco growing area and increasing the volume of burley tobacco purchases this year.

In a briefing with agriculture reporters, Chris Nelson, president of PMFTC, said that “indications for 2011 point to a good tobacco crop, assuming that there are no typhoons between now and March.”

Nelson said the 2011 tobacco harvest starts in March- April, and is expected to reach 55 million kilos or eight million kilos higher than the 2009 production of 47 million kilos.

PMFTC has expanded and plans a further expansion of burley tobacco growing and buying in Mindoro.

Nelson said their initial expansion in Mindoro covers 450 hectares with an average production of 1,500 kilos per hectare. The yield is 1,900 kilos per hectares.

The company is also looking at other areas in Samar, Bicol and Mindanao. Nelson said a decision will be made on whether or not to expand after PMFTC has studied the capability and capacity of farmers in those area.

PMFTC’s average buying price for burley tobacco is P69/k compared to the floor price of P37/k set by the National Tobacco Administration.

The National Tobacco Administration (NTA ) has projected an increase in tobacco production for crop year September 2010 to August 2011 of around 10 percent to 71.4 million kilograms from crop year 2009-2010 production of 65.392 million kilograms.

NTA administrator Edgardo D. Zaragoza said that the increase is expected from the expansion of tobacco production areas in Regions I and II to 36,593 hectares from the current planted areas of only 32,762 hectares.

With the expansion of production areas, Zaragoza said, the number of tobacco farmers is projected to increase to 73,000 from the current 65,000.

For tobacco crop year 2009-2010, the NTA head reported, the value of production amounted to P4.325 billion, a 7.47 percent increase from the comparable production value of crop year 2008-2009 of P4.024 billion.