Tobacco output seen to reach 80-million kilograms

MANILA, Philippines - The National Tobacco Administration (NTA) expects tobacco production for crop year September 2011 to August 2012 to reach 80 million kilograms, from 77 million kilograms for crop year 2010-2011.

Speaking at the NTA’s 24th anniversary celebration, Administrator Edgardo D. Zaragoza said the latest projection is way above the original forecast for crop year 2010-2011 of 71.4 million kilograms.

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

 The increased production 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.

Zaragoza expressed confidence that even with the anti-smoking campaign, the increase in tobacco production would still be taken up by the export market.

Zaragoza projects that of this crop year’s production, up to 55 percent would be exported.

 For tobacco crop year 2009-2010, 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.

 The production volume of 65.392 million kilograms for crop year 2009-2010, Zaragoza said, was 11.64 percent higher compared to crop year 2008-2009 of only 58.571 million kilograms.

 The Philippines’ tobacco production is comprised of the virginia, Burley and native varieties with the highest production variety of virginia for crop year 2009-2010 amounting to 144.981 million kilograms; burley of 55.172 million kilograms and native production of only 44.977 million kilograms.

Current buying price of tobacco leaves is around P70/k, while buying price for rejects is lower at P40/k.