Exporters greeted with great interest the new Chinese tobacco market as an opportunity that will stimulate economic growth and increase the income of farmers.
“With millions of smokers, China will provide reliable market for tobacco Tanzania and reduce dependence on traditional Western markets,” he said. It was recently discovered that the least developed tobacco exporters could lose its traditional markets after the European Union (EU) plans to make cigarettes less attractive to new smokers.
The move is expected to have a negative impact on the growth of the sector, which, in the 2010 World Trade Organization (WTO), the study provides more than 60 percent of foreign exchange earnings.
Mr. Lawrence said TANEXA started doing research on the value chain of tobacco products to identify market constraints and generate demand, which will determine the demand and the price of the product.
He also said, TANEXA will search for the need to maximize environmental tobacco markets in the region, as in the Democratic Republic of Congo (DRC), South Sudan and Somalia. Studies on the value chain of tobacco products will help the government to adapt to agriculture production, expansion of the officials and other facilities required for sustainable agriculture.
Last week, Minister of Agriculture, Food and Cooperatives, Eng. Christopher Chiza said agreement on phytosanitary requirements for tobacco leaf in China was an important step that will ensure farmers with new and reliable market.
The agreement signed between the governments of the two countries 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 is a guarantee that they will buy tobacco from Tanzania.
This step will remove the doubt created by the traditional markets in the West, where there is a threat to ban the import of tobacco, “he said. Mr. Chiza said in the 2010/11 season, farmers produced 130,000 tons, but only 90,000 tons were purchased. The next season saw declining production due to losses incurred.