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REVIEW OF THE 2013 SEASON FRED KAMVAZINA TCC. PRESENTATION LAYOUT Opening dates Market Highlights Crop estimates versus actuals Successes Challenges Way.

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Presentation on theme: "REVIEW OF THE 2013 SEASON FRED KAMVAZINA TCC. PRESENTATION LAYOUT Opening dates Market Highlights Crop estimates versus actuals Successes Challenges Way."— Presentation transcript:

1 REVIEW OF THE 2013 SEASON FRED KAMVAZINA TCC

2 PRESENTATION LAYOUT Opening dates Market Highlights Crop estimates versus actuals Successes Challenges Way forward

3 Opening & closing dates FloorOfficial Opening date Official Closing Date Weeks of trading Lilongwe11 th March nd August Chinkhoma13 th March st August Limbe18 th March th July Mzuzu8 th April th August Kabwafu16 th April th August

4 Market Highlights Positive developments in Volumes sold and Value realised but unfavourable in prices compared to 2012 Increased volume in all tobacco types by 111% Increased Value by 103% Reduced average price by 4% Minimal market disruptions and rejections Major difference in quality between IPS crop and auction Reduced NTRM cases but nesting remains a challenge

5 Market Developments: Sales volume (KG) Crop Type % Change over 2012 sales Burley 64,676, ,796, Flue Cured 12,628,175 19,747,03756 NDDF 2,298,529 3,837,14867 SDF 219, ,74931 ALL TYPES 79,822, ,667,601111

6 Foreign Exchange Generation (US$) Crop Type % Change over 2012 sales Burley 132,132, ,111, Flue Cured 40,337, ,213, NDDF 4,806, ,918, SDF 542, , ALL TYPES 177,819, ,837,

7 Average Prices (US$/Kg) By Crop Type Crop Type % Change over 2012 sales Burley (1) Flue Cured (3) NDDF (1) SDF (16) ALL TYPES (4)

8 2013 Burley AVG Prices (US$/Kg) per Floor FloorAuctionContractALL BurleyNational AVG Lilongwe Chinkhoma Limbe Mzuzu Kabwafu ALL Floors

9 2013 Flue Average Prices (US$/Kg) FloorAuctionContractALL FLUENational AVG Lilongwe Limbe Chinkhoma Kabwafu Mzuzu ALL Floors

10 Crop Estimates Vs Actuals Within the acceptance range: 4% lower than actual for all tobacco types Bigger underestimation on NDDF (9%) Improved over 2012 estimate results where actual outturn was 47% lower than estimates

11 Crop estimates Versus Actuals: 2013 & 2012 Estimat e (mn Kg) (Actual (mn Kg) Variance (%) Burley Flue (3) NDDF SDF (4) National Estimat e (mn Kg) (Actual (mn Kg) Varianc e (%) Burley (52) Flue (6) NDDF3.92.3(41) SDF (1) Nationa l (47)

12 2013 Minimum Prices versus Actual Burley & Flue Cured registered competitive prices above Govt set minimum Dark fired sold below minimum NDDF & SDF sold at 3% lower than minimum

13 2013 Minimum Prices versus Actuals

14 Auction Compared to Contract System Govt set 80-20% share in favour of Contract for burley Outturn shows 69% Contract and 31% Auction Contract prices were higher by 21% over minimum against 15% higher for auction Average Contract prices were above average auction prices by 5% for burley

15 Successes More volumes within shorter period: 139 million Kg in 2013 against 79 million Kg over the same period of 17 weeks Improved inflow of tobacco Met the demand for Flue Smooth selling very minimal market disruptions Very low rejection rates Capacity utilisation of selling floors NTRM has improved tremendously

16 Challenges Delays in payments for contract growers after fully servicing loans Attainment of the IPS share in offloading Mix up of contracted growers among merchants (some not even contracted) Local varieties (certified & recycled) fetching more than supplied varieties Extended trading hours Misunderstanding on interpretation of new grades especially NDDF Nesting still remains a big challenge Buyers preference for sponsored over contract marketing crop Delays in clearing purchased tobacco by merchants

17 Way Forward Train buyers on NDDF grades interpretation Review payment system for contract farmers Credible data and verification on contracted farmers to respective merchants Review seed package for IPS Review sale plan Continue intensifying NTRM messages


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