Accomplishment Reports

Accomplishment Reports

2021
2020
2019
2018
2017
2016
2021

National Tobacco Administration (NTA)
Annual Report

The National Tobacco Administration, the sole government tobacco regulatory agency attached to the Department of Agriculture, has the mandate to improve the economic and living conditions and consequently raise the quality of life of the tobacco farmers including those who depend upon the industry for their livelihood; and to promote a balanced and integrated growth and development of the tobacco industry to help make agriculture a solid basis for industrialization.

For CY 2020-2021, tobacco was planted in 26,628 hectares mostly in seven major tobacco-producing provinces with 39,044 tobacco growers. The occurrence of the COVID-19 pandemic in the first quarter of 2020 and its continuing threat slowed down production of tobacco. Tobacco production for Trading Year 2021 is at 46.28 million kilos, or about 6% decrease from the 2020 output (49.17 million kilos) and slightly lower than the five-year average of 46.84 million kilos.

The NTA has accomplished the implementation of the following programs/activities/projects that are aligned to the One DA Approach/Strategies, and geared towards of the goal of “Masaganang Ani at Mataas na Kita,” or increased productivity and income of farmers through provision of production assistance and other interventions for quality production.

On top of this, NTA initiated in 2021 the Block Farming Scheme, a key strategy of its Sustainable Tobacco Enhancement Program (STEP) and aligned with the DA’s Transformative Strategies. This will allow the agency to achieve its goals set for the next five years and spur development though livelihood creation, job generation and income augmentation.

 

Ø    Farm Clustering/Bayanihan Agri Clusters (BACs)

Ø    Post-harvest, Processing Logistics and Marketing Support

 

a. Tobacco Farmers’ Production Assistance/Tobacco Contract Growing System (TCGS)

The TCGS is a market-oriented production system that assures leaf buyers of the volume and quality of tobacco they need; and assures the farmers of production technology transfer, credit assistance and marketing assistance directly to the farmers who are members of the pilot block farm under the TCGS. NTA has provided production assistance (at an average Php50,000 per hectare) with a 40% subsidy. For CY 2021-2022, NTA assisted a total of 7,182 tobacco farmers, tilling an aggregate area of 5,003.96 hectares, with a total budget allocation of PhP204 million (PhP100 million from NTA’s subsidy and PhP104 million from corporate funds).

 

b. Rice-Corn Production

As a component of the Integrated Farming and Other Income Generating Activities Project (IFOIGAP), this is implemented in line with the rice self-sufficiency program of the government led by the Department of Agriculture, and to augment the income of tobacco farmers, other than tobacco production. Farmer-cooperators are granted production/credit assistance to an average amount of P20,000 per hectare with a 40% subsidy.

A total of 4,952 farmer-cooperators with an area of 4037.95 hectares in Regions 1, 2 and Abra were assisted and granted production assistance, with total amount of PhP50 million. 

While there is decrease in average yield due to the effect of calamities, we note an increase in the 2021 production 4,592 kg/ha, which is higher than the average 6-year average output (4,492 kg/ha) in 2020.

 

c. Improved Seedling Production 

The project aims to encourage early planting among tobacco farmers for improved quality, yield and increased income. The seedling growers are paid based on the number of good plantable seedlings produced. For 2021, the project has 249 modules for implementation (6 has/module and 20,000 seedlings/ha) with an area of 3,075. A total of 3,000 farmer cooperators were tapped and provided with technical, inputs and implements to produce 30 million seedlings distributed for free. The project had a total budget allocation of PhP20M and buyback at PhP9M. The seedlings were bought back by the agency at PhP0.30 per seedling as an additional income to the seedling growers.

 

d. Curing Barn Assistance Project (CBAP) 

 The project aims to improve leaf grades through the production of properly cured leaf. NTA provides facility assistance for the construction and repair of curing barns and air-curing sheds, or replace old/damaged ones that have been destroyed by calamities that hit the region in recent years. It is a continuing project with a PhP100 million budget. A total of 4,029 tobacco farmers availed of the assistance for the construction/repair of their curing barns and curing sheds.

e. Beef Cattle Production Assistance Project

The project provides selected tobacco farmer-cooperators with one ready-to-breed upgraded Brahman heifer, and it is expected to jumpstart the beef cattle industry in the tobacco growing provinces. A total 500 heads Brahman heifer (2nd batch) were distributed to the recipient farmer-cooperators of Regions 1, 2 and Abra with a total budget of PhP20 million, funded from the agency’s Corporate Funds. Additional budget of PhP300,000 is allocated for MOOE for the conduct of technical training.

f.  Gulayan at Manukan sa Barangay  

This is one of the refocused projects of the agency to enhance food productivity, supply availability, and price stability amid COVID-19. It enables the household beneficiaries to produce their own food and share the opportunity to raise additional income for their family. As of December 2021, 1,342 tobacco farmers, whose tobacco plants were affected by freak rains were given free chicks, including feeds. For the Vegetable Seed Distribution (“adopt a town” for vegetable production), each of the 6,685 tobacco farmers was given vegetable seed packs which consist of 5 packs of different vegetable seeds were distributed to tobacco farmers.

Ø  Digital Agriculture

Development of NTA Projects Facility Maps for the Stakeholders of the Tobacco Industry TRAFMAP in regions 1,2 AND CAR

The Farm Technology and Services Department (FTSD) has completed the pilot implementation of the TRAFMAP at the Ilocos Norte Branch. The total number of farmers surveyed and geotagged is 2,908 which is equivalent to 74.60% of the validated tobacco farmers (3,898) registered to RSBSA from CY 2019-2020. The project also included the Improved Tobacco Seedlings Production Setups; 21 setups were geotagged in Badoc, Banna, Sarrat, Dingras and Pasuquin. The project has geotagged a total number of 2,892 curing structures (2,283 curing barn, 577 curing shed and 14 sun drying structures) and Farm Machineries (33 hand tractors, 54 tractors, 268 water pumps), 154 knapsack Sprayer and 56 animals were geotagged.Ø  Climate Change Adaptation and Mitigation Measures

 

a.    Renewable Fuelwood Energy Farm Project

 

The project aims to address the fuelwood and other forest resources requirement of the farmers in the flue curing of Virginia tobacco, as well as assist in the reforestation efforts of the tobacco growing regions. For the Synchronized Tree Planting component, about 867,724 million tree seedlings were actually planted in Regions 1, 2 and CAR, participated in by government agencies, SUCs, LGUs and other volunteer groups.

 

b.   Design, construction and evaluation of solar-aided curing barn for tobacco flue-curing

The first off-grid solar power system, curing barn and heat pump dryer has been constructed and installed at Camanga, Badoc, Ilocos Norte. The Solar-aided Curing Barn (SACB) was tested without load where it obtained 11kWh of total energy consumption in obtaining a 50oC temperature. It was also observed that the heat pump dryer can increase the Temperature of 1oC in just 2 minutes without load. The heat pump dryer showed its efficiency in maintaining the
required temperature. In every 10 minutes, computed mean consumption in increasing a temperature of 1oC was 0.209kWh which is equivalent to 1.045 kWh per 5oC or compared to 18 kg of fuelwood consumption equivalent to 93.2 kWh of power.

 

Ø   Collective action/Cooperative Development

Ø   Mobilization & Empowerment of Partners to Attain Scale

        Farmers Organizational Development (FOD)

 

Farm Technology and Services Department (FTSD), is tasked to assist in organizing, capability building and livelihood training of the tobacco farmers and their dependents. One of the activities undertaken to date is the inventory of tobacco-based cooperatives numbering 309 in 83 municipalities, who will be conduits of assistance of the proposed block farms. A total of 14 cooperatives with a total of 636 tobacco farmers were identified as initial beneficiaries of block farms.

 

Ø  Global Trade, Export Development and Promotion

Tobacco Research and Development

Under the Farm Technology Development Division based in Batac, Ilocos Norte, the following researches are being conducted with the objective of improving the quality of the leaf and reducing the cost of production.

a.     Tobacco Germplasm collection, purification, maintenance and characterization, conducted an extensive germplasm collection of all types: Flue cured/Virginia, Burley, Cigar Wrapper/Filler, Batek, Oriental and other Nicotiana species, together with exhaustive morpho-agronomic characterization and pest resistance are available ready to be utilized by breeders to develop  new and improved varieties that might be desired by tobacco buyers to answer their specific requirements; 89accessions had been transplanted at the Tabug Experimental Farm.

b.  Tobacco seed production and distribution. Harvesting of mature seedheads had been completed for the 4 varieties for seed increase. The harvested and threshed varieties are NC 2326, TN90, Golden Harvest and DH 48.

c.     Performance evaluation of flue-cured and burley tobacco hybrids, one season evaluation of
hybrid flue-cured and burley varieties compared to recommended pure lines (non-hybrids had been completed. Farmer-cooperators (FCs) completed the harvesting, classification of cured leaves, weighing, and collecting samples: 11 in Ilocos Sur and 16 in La Union. Collection of soil samples and collection and classifying of leaf samples was completed in Banna and Badoc in Ilocos Norte, and in Candon City in Ilocos Sur.

d.    Pest Clinic-Quick Response System is a continuing NTA project to monitor the prevalence of pests and diseases and to have ready recommendations in case of outbreaks. The pest clinic team coordinated closely with the NTA Branch offices on the occurrence of pests and diseases in their respective areas. For 2021, the FTSD had completed the preparation and sterilization of culture media (Potato Dextrose Agar and Water Agar) and glasswares for isolation and purification.

e.     Monitoring of Soil & Water in the different Tobacco Growing Areas; 125 soil and 49 water samples from Vigan; 127 soil samples from Candon to be submitted to TLSID-Batac for analysis. This is done to evaluate the soil fertility, water and chloride content of specific tobacco-growing provinces.

      

Under the Industrial Research Department (IRD), studies are continuously being conducted on alternative uses of tobacco, among which are:

Tobacco Powder and Extract Research and Development

1.   Demonstration trials on the Use of Tobacco Leaf Extract Ointment against skin diseases of animals, 36 test animals were treated with TLE ointment infested with parasites in Ilocos Norte. 

 2.  Tobacco Seed Oil Extraction, Purification and Characterization, 2.6 liters of tobacco seed oil was extracted using Soxhlet method and Rotavap and this will be sent to ITDI for analysis and characterization.

Scale-up Production of Tobacco Handmade Paper and Novelty Item

 •  Prototyping & enhancement of THP novelty products.

 •  Production of tobacco handmade papers (THP)

Ø  Consumer Safety and Regulations

The Quality Assurance Division collected the following samples for Physical and Chemical Characterization of Tobacco Leaf, 64 for Virginia-Neutral and 54 for Virginia Topped Flavor tobacco; 25 for Burley Neutral Flavor and 44 for Topped Burley Flavor. These samples will be analyzed in the laboratory.

 On the aspect of monitoring/enforcement, the NTA assures equitable trading to include, accurate weighing, proper grading, proper pricing, prompt payment and proper documentation, pursuant to existing rules and regulations. These activities are implemented through our Tobacco Production and Regulations Officers in the 8 Branch Offices in Regions I, II and CAR and our Regulation Dept. in the Central Office.

Commodity clearances/import/export permits issued to 557 Importers/Exporters/ Manufacturers and Licenses were likewise issued to Trading Centers/Wholesale Tobacco Dealers/Redrying Plants. Processing is done online.

 

Ø  Ease of Doing Business and Transparent Procurement

 

   Tobacco Regulations

NTA has successfully completed the critical onboarding activities in the TRADENET Platform during the 3rd National Single Window – Technical Working Group (NSW-TWG). Objective of which is to streamline and facilitate application of licenses and permits on tobacco trading, imports and exports of tobacco leaf and products.

 

Ø    Strategic Communications

 

Communication Support, Education and Information Campaign

 

1.      Publications

A special issue of the Philippine Tobacco News of the Agency was released for updates of the agency’s program and projects and other relevant activities. The Techno-Calendar, which contains the schedule of activities in the tobacco production, Good Agricultural Practices and a list of programs and projects of the agency were printed and distributed to the industry stakeholders.

2.   Press releases – There were 20 information of activities and programs of the agency released to the press through direct mail to media outlet or via social media posting

3.   Website – Regular updating of the agency website (updating of news article and relevant data) has been done, for easy navigation and provide a more comprehensive source of agency information and services, and effective online presence under the new normal, where people now turn to and rely on the Internet for relevant information with travel and mass gathering restrictions.

 

Ø    Other Programs/Activities

 

Institution Building

 

1.    Institutionalization of Quality Management System – The Agency passed the surveillance audit for its ISO 9001:2015 certification. This was the third year that the agency passed the annual surveillance audit for ISO.

2.    IT Infrastructure Development  – The agency has procured 74 laptops and 30 desktops to enhance performance in office and work-from-home arrangements of the staff in all the branch and department offices and units.

3.     Farmer’s Training Buildings – Three Farmers’ Training Centers, Vigan Branch (located in San Juan, Ilocos Sur), Cagayan Branch (locatedin Tuguegarao City) and Isabela Branch (located in Ilagan City), completed construction in 2021.

4.     Human Resource Development –  To enhance the manpower capability of the agency for its upcoming projects under the Sustainable Tobacco Enhancement Program, and to boost employment in the government, the agency filled up 94 plantilla positions in 2021. The Administrative Services of the Administrative Department conducted 67 trainings, which include technical, leadership/ supervisory, and foundations.

2020

National Tobacco Administration (NTA)
Annual Report

The year saw another increase in domestic taxation of tobacco with Republic Act No. 11346, known as the Tobacco Tax Law of 2019, signed into law by President Rodrigo Duterte in July 2019. This gave another round of rate increases for tobacco excise tax and imposed taxes on heated tobacco and vapor products. The latest legislation posed another challenge for the industry, which is already beset with aggressive global campaign against tobacco and smoking, increasing import liberalization, and global competition.

The COVID-19 pandemic, which started in the first quarter, posed the greatest challenge for the agency, with the series of lockdowns in the second quarter, and continuing restrictions on travels and mass gatherings until now. The agency was in operations in skeleton force to comply with government health protocols, but this did not hamper trading operations and implementation of projects, especially on priority programs, including interventions to help the farmers under the “new normal.” The current leadership of Administrator Robert Victor G. Seares Jr., stressed that the health of the employees and workers are of primary concern and made sure that all are provided with the protective kits, observe all health protocols as he continued the policies and directions of the past administration

Amidst these issues and challenges, NTA continued to be aggressive in its performance to fulfill its twin mandate, to improve the lives of our tobacco farmers and all those who depend on the industry for their livelihood and promote the balanced and integrated growth and development of the tobacco industry.

The Agency’s accomplishments focused on priority programs, projects, and activities geared towards responding to the call of the Department of Agriculture for “Masaganang Ani at Mataas na Kita,” particularly on increased productivity and income of farmers through provision of production assistance for quality production, as well as responding to the needs of the tobacco farmers and stakeholders during the COVID-19 Pandemic.

The PAPs  implemented were funded in the 2020 General Appropriations Act by virtue of SAGF-151 charged against R.A. 4155 (Tobacco Fund) as well as its Corporate Funds.

 

TOBACCO INDUSTRY’S PERFORMANCE

Number of tobacco farmers increased by 39%, or from 29,830 in 2018-19 tobacco season to 41,516 in 2019-2020, while tobacco farm area (in hectares) decreased by 7%, or from 29,839 to 27,765 in the same period.

Volume of tobacco production/acceptances for all tobacco types (Virginia, Burley and Native) increased by 1.89%, from 46.6 M kilos valued at PhP3.92-B in 2019 to 47.5 M kilos, valued at PhP3.93 billion in 2020.  This figure may increase however, as documentation of native tobacco is still continuing.

Export of unmanufactured leaf tobacco decreased by 8.8% from 37.91 million kilos in 2018 to 34.58 million kilos in 2019; with a corresponding 14.2% decrease in value, from US$158.97 million to US$136.42 million. Manufactured tobacco increased in 2018 to 2019 by 13.6% (from 41.96 M kilos to 48.57 M Kilos) and a corresponding 15% increase in value, from US$352.09 to US$414.07,

Local manufacturers imported a total of 82.38 million kilos of unmanufactured leaf tobacco in 2018 to 73.95 million kilos valued at US$289.38 million in 2019, or a reduction of 10.2%. Importation of manufactured tobacco in 2019 reached 10.03 million kilos, valued at US$96.75 million.

Data on exports and imports of tobacco for 2020 is yet unavailable as this is being provided by the BIR.

Revenue from excise taxes for 2019 is at PhP132.49-B, which is a 6.3% increase from the PhP124.14-B collection in 2018.

PROGRAMS/PROJECTS/ACTIVITIES

I. Technology Assistance, Extension and Production Support Services

  1. Integrated Farming and Other Income Generating Activities Project (IFOIGAP)

1.1 Tobacco Farmers’ Production Assistance/Tobacco Contract Growing System (TCGS)

The TCGS promotes a market-oriented approach in tobacco production through the adoption of a contract-growing scheme, to enhance participation of the private sector in production technology transfer, credit assistance and leaf marketing. Production/credit assistance per hectare averages PhP50,000 with a 20% subsidy on fertilizers/pesticides. For Crop Year 2019- 2020, the NTA assisted a total of 7,131 tobacco farmers tilling an aggregate area of 4,657 hectares. The total production assistance extended was PhP164 million, PhP100 million of which is a continuing locally funded project.

Activities in the early part of 2020 included harvesting, curing, and selling of farmers produce to the trading centers although selling/buying were partially hampered due to the Enhanced Community Quarantine (ECQ) but the agency immediately coordinated with the trading centers and requested quarantine passes from the DA and the LGUs to accommodate tobacco farmers for them to be able to sell their produce.  We have facilitated the release from DA Regional Office I and II of 130 food lane accreditations to our local traders for the unhampered transport of our farmers’ produce to the trading centers.

For crop year 2020-2021, a total of 1,912 farmers covering 561 hectares were provided production assistance in CAR, Region 1 and 2 under the NTA Financing, while 1,116 tobacco farmers in 751 hectares were LGU beneficiaries.  NTA’ production assistance totaled PhP99.9 million while the LGUs thru their RA 7171 shares allocated PhP13.6 million.

1.2 Rice Production Project

As an IFOIGAP component, the Rice Project Wet Season is implemented in line with the rice self-sufficiency program of the government led by the Department of Agriculture, to augment the income of tobacco farmers. Farmer-cooperators are granted production/credit assistance to an average amount of P20,000 per hectare with a 40% subsidy.

A total of 3,531 farmer-cooperators with an area of 2,828.50 hectares in Regions 1, 2 and CAR were assisted and granted production assistance, with  total amount of PhP49.46 million.

2. Curing Barn Assistance Project (CBAP)

Curing Barn Assistance Project (CBAP) addresses the tobacco farmers’ need for new curing barns and air-curing sheds, to replace old/damaged ones that have been destroyed by calamities that hit the region in the recent years. With a PhP100 million budget which is yet to be released by the DBM, applications for the facility assistance are being processed, as the budget is still.  To date, 1,003 farmers availed of curing barn construction/repair amounting to PhP29 million while 2,084 farmers benefitted from curing shed construction/repair totaling to PhP44 million.

 

3. Improved Seedling Production

Funded from the agency’s Corporate funds, the project aims to encourage early planting among tobacco farmers for improved quality, yield and increased income. For crop year 2020, 126 modules (120,000 seedlings per module) will be planted and provided with technical assistance, inputs and implements to produce 15.12 million seedlings to be distributed free to tobacco farmers.  The seedlings will be brought back by the agency at PhP0.30 per seedling as an additional income to the seedling growers.  The project’s total cost is PhP4.54 million from the agency’s  Corporate Funds.

4. Renewable Fuelwood Energy Farm Project

The project aims to address the fuelwood and other forest resources requirement of the farmers in the curing of Virginia and other types of tobacco, as well as assist in the reforestation efforts of the tobacco growing regions.For the Synchronized Tree Planting component, about 984,300 number of tree seedlings to be produced in Regions 1, 2 and Abra, participated in by government agencies, SUCs, LGUs and other groups. This brought to a total of 6.3 million trees planted since the start of the project in 2013.

For the Kahuyang Pangkabuhayan at Pangkalikasan (KPP), the agency conducted inventory of trees and assistance in completing documents for the harvest and transport of these. As of the 3rd quarter of 2020, there are 53 clusters and 679 farmer-cooperators required for CTPO application by the DENR, but only 18 clusters with 243 farmer-cooperators issued approved application for Vigan and La Union Branch Offices.

5. Tobacco Farm Mechanization Program (TFMP)

The TFMP aims to modernize the conduct of field activities on tobacco production and this is done by applying in new technologies and using farm machineries and equipment to increase the farmer’s efficiencies of labor utilization and increased productivity/income. 4-wheel tractors were given a subsidy of 40 percent (%).  For 2020, there are 28 farmer cooperative availees from Abra and Region 1 with 2,253 members and total service area of 1,607.85 hectares. Sixteen (16) power tillers were also distributed in 2 provinces who did not avail of farm tractors. The initial fund for the program was sourced from the Corporate Fund and it was proposed that future funding will be sourced from the Tobacco Fund (RA 4155).

6. Beef Cattle Production Assistance Project

The IFOIGAP was developed and implemented with the objective of making the tobacco farmers as “total farmer” doing “total farming” including livestock production.  With the end in view of increasing the income of the tobacco farmers, the project provides the selected tobacco farmer-cooperators with one ready-to-breed upgraded Brahman heifer, and jumpstart the beef cattle industry in the tobacco growing provinces to be pushed through forward payment to downline farmer-cooperators. Started in November, 250 tobacco farmers shall benefit with with a total budget of PhP10 million, funded from the agency’s Corporate Funds.Roger Pacapac, 53, tobacco grower from Salucag, Dolores, Abra, is one of the beneficiaries of the Beef Cattle Production Assistance Project (BCPAP) of the National Tobacco Administration. He received his ready-to-breed upgraded Brahman heifer from NTA Abra Branch Office during the dispersal in Dolores.

“Maraming salamat sa NTA sa pagpili sa akin bilang beneficiary ng beef cattle dispersal. Malaking tulong ito sa aking pamilia. Sana tuloy-tuloy ang programang ito ng ahensia at mas marami pa ang matutulongan na mga magsasaka ng tabako katulad ko.”

7. Farmers Organizational Development

The agency, through its Farm Technology and Services Department (FTSD), is tasked to assist in organizing, capability building and livelihood training of the tobacco farmers and their dependents. Activities undertaken to date is the inventory of tobacco-based cooperatives who will be conduits of assistance of the proposed block farms.  It has also updated the Tobacco Farmers Registry and through the FOD coordinators in the branch offices, enrolled the tobacco farmers in the RSBSA, as it is being required by the DA for social amelioration purposes of the government. This is a continuing activity.

8. Communication Support, Education and Information Campaign

The “Oras ni Mannalon ti Tabako” Radio Program in six (6) radio stations in Region 1 and Abra show up for the weekly broadcast to make sure that our tobacco growers and the rest of our stakeholders are given relevant information, especially on trading matters and those concerning government interventions for our affected farmers of the pandemic. The OMT program, agency website and official social media accounts helped in intensifsying the information advocacy of the agency and programs of the Department of Agriculture.

 

II. Research and Development Services

On Agricultural Research, we conducted Seed Production, Tobacco Germplasm Collection, Maintenance and Characterization to preserve the various seed varieties of tobacco. Field trials conducted by the Farm Technology Services Dept. include Evaluation of Batek Tobacco Varieties Commercially Grown in La Union and Pangasinan for NSIC Registration, and protocol researches or Fertilizer Trials on various Inorganic and Organic Fertilizers/Pesticides on the efficacy on various types of tobacco.

Our Industrial Research Department (IRD) is conducting studies on alternative uses of       tobacco, which include “Scale Up Production and Demonstration Trails on the Use of Tobacco Leaf Extract Ointment against Diseases of Animals”; Tobacco Handmade Paper production: technology enhancements and prototyping of novelty items”; and “Spent Tea Leaves and Tobacco Dust as Additive to Plywood Adhesive”, spearheaded by the FPRDI, Los Baños, Laguna.

Our Soil and Water Laboratory in Batac City provides Analytical Services specifically on the Monitoring of Soil and Water Quality of tobacco areas. The Quality Assurance Division and its Laboratory conducts Physical and Chemical Characterization of Tobacco Leaf and Tobacco Products. On Capability Enhancement for Quality Assurance, the IRD conducted training on the Harmonized Grades of Tobacco, with 100 participants, composed of TPROs, Agriculturists, Tobacco Company Graders and Farmer Leaders.

 

III. Regulatory Services

In the exercise of its regulatory authority, the Regulation Department (RD) has supervise tobacco trading operations, set up of floor prices for tobacco through the conduct of the biennial tripartite conference, and implement regulatory procedures on the redrying, preliminary processing of tobacco leaf, and the regulation of importation and exportation.

On the aspect of monitoring/enforcement, the NTA assures equitable trading to include, accurate weighing, proper grading, proper pricing, prompt payment and proper documentation, pursuant to existing rules and regulations. In 2020, the agency issued licenses to 36 trading centers, Permit and Authority to Purchase to 14 wholesale tobacco dealers, and Permit and Authority to Redry to three redrying plants, 39 Licenses/Authority to Export, 63 Licenses/Authority to Import, 13 Authority to Transship leaf tobacco and tobacco products, and 25 Accreditations to Manufacturers.

In observance of the policy of “social distancing”, during the pandemic, the NTA adopted the online (e-mail) filing and processing of applications for permits/licenses and clearances/(CCs).  Payment of regulatory fees were allowed through bank to bank fund transfer. As of June 2, 2020, the NTA processed/approved online a total of 947 import/ export/transshipment commodity clearances and 89 licenses/authority to buy tobacco.

In order to prevent our staff from contracting the disease, the physical inspection of commodities was suspended in the meantime, subject to random inspection to ensure compliance with the NTA rules and regulations and veracity of declared tobacco commodities.  The NTA merely require the submission of photographs showing the actual commodities, as well as the photographs prior, during and after the sealing or unsealing of cargo trucks or container vans.

The NTA is now ready with the final draft of the implementing guidelines on the online applications through the Trade.Net interconnectivity, for approval of the NTA Governing Board.  The Trade.Net is an online platform initiated by the Department of Finance (DOF) which brings 76 trade regulatory agencies to be fully connected enabling them to streamline the application of import and export permits for various products.

 

IV. NTA’s Refocused Proposal Projects/ Activities on Food Production

In compliance with the Honorable Secretary of Agriculture’s Memorandum dated April 14, 2020, directing all Bureaus, Attached Agencies, Regional Field Offices and Banner Program Directors to refocus/realign the FY 2020 budget to enhance food productivity, supply availability, and price stability amid COVID-19, we submitted the following additional programs/projects, including implementation updates:

Project Targets MOOE/CO Allocation (M PhP) Source of Fund ACCOMP/REMARKS
NTA Risk Management Program/ Emergency Cash Assistance (ECA) to Tobacco Farmers 6,674 TCGS Farmers @ PhP 2,000/farmer 13,142 Corporate Funds Php 12,852 disbursed in Region 1 and CAR (Abra) for 6,426 tobacco farmers
Gulayan at Manukan Sa Barangay Project 1,000 sites in 8 tobacco-producing provinces of Regions I, II and CAR at P 10,000 per site 10,000 -do- Established 976 Gulayan and Manukan sites in Regions I & II and CAR (Abra); 2,920 vegetable seeds and 14,600 day old chicks distributed for a total cost of PhP 10.238M
Distribution of Vegetable Seeds 5,355 farmers 500 pesos worth of veg seeds per farmer 3,300 -do- Distributed 7,544 seeds packs (5 kinds of vegetable seeds per seed pack) to 5,355 tobacco recipients
KADIWA One Stop Shop (for Processed Meat by the Plant, Poultry, Vegetables, etc.) Initial production/selling of 5,000 Kg meat; 6,000 Kg of Poultry, 400 Kg of vegetables 900 -do- On-going operation of the Chicken Dressing Plant Production of hog was suspended due to ASF

Rene G. Balangue, 39, tobacco grower of Sta. Lucia, Aringay, La Union, is one of the beneficiaries of the Gulayan at Manukan sa Barangay, He received from NTA La Union 30 Broiler chicks and assorted vegetable seed packs for his one-hectare farm, and started harvesting last September.  In Ilocano dialect, this is what he has to say::

“Malaking tulong ang proyekto sa aking pamilya sa panahon ng pandemya. Yung napagbentahan ko ng mga manok at gulay, ginamit kong ipinambili ng kambing na ngayon ay may mga anak na. Nabigyan ko rin ang aking mga kapitbahay ng mga gulay. Salamat, NTA!”

 

V. Other Significant Accomplishment

NTA passed the recertification audit for ISO 9001:2015, by the international certification body Société Générale de Surveillance (SGS, Intl.) on July 24 to 26, 2020. The latest version of ISO 9001:2015 incorporates risk management to enable organizations to identify and provide a systematic approach to risk for more efficient quality management system.

A Customer Satisfaction Survey (CSS) was conducted in the last quarter of 2019 by the Mariano Marcos State University. The GCG provided the guidelines for the survey with the objective of assessing the performance of NTA along efficiency/effectiveness of staff and organization; quality of products and services (programs such as Tobacco Contract Growing, CBAP, Regulatory Services etc.); effectiveness of training programs; handing of complaints, facilities, etc.  Based on the results of the annual CSS, which started in 2017, the NTA has consistently garnered a very satisfactory rating from the tobacco farmers and other stakeholders.

In compliance to the 8 paradigms of the DA, the agency formulated the Sustainable Tobacco Enhancement Program (STEP), a five-year plan and roadmap for the development of the tobacco industry toward increasing agricultural and rural enterprise productivity through farm clustering/block farming and Agribusiness sizing. The roadmap is due for presentation and approval to the NTA Governing Board.

2019

National Tobacco Administration (NTA)
Annual Report

The year saw another increase in domestic taxation of tobacco with Republic Act No. 11346, known as the Tobacco Tax Law of 2019, signed into law by President Rodrigo Duterte in July 2019. This gave another round of rate increases for tobacco excise tax and imposed taxes on heated tobacco and vapor products. The latest legislation posed another challenge for the industry, which is already beset with aggressive global campaign against tobacco and smoking, increasing import liberalization, and global competition. Amidst these issues and challenges, NTA continued to be aggressive in its performance to fulfill its twin mandate, to improve the lives of our tobacco farmers and all those who depend on the industry for their livelihood and promote the balanced and integrated growth and development of the tobacco industry.

The industry provides livelihood and sustenance to about 2.7 million of stakeholders, including 92,501 people in the tobacco labor force at the production level, consisting of farmers, laborers, helpers, agents and landlords, in Regions 1, 2 and CAR as of 2019. About 6,200 were employed in the local manufacturing and at the trading or buying level.  Government employees connected to the tobacco industry were just about 0.49 percent with 483 employees.

Based on PSA-BAS data, tobacco remained as one of the top ten agricultural exports at an average of 39 mt valued at US$194.8 B for manufactured tobacco, and 37.9 mt valued at US$113.25  unmanufactured tobacco, for the period 2014-2018.

 

TOBACCO INDUSTRY’S PERFORMANCE

The number of tobacco farmers decreased by 8.6%, or from 32,652 in 2018 to 29,839 in 2019, while tobacco farm area (in hectares) decreased by 17%, or from 22,794.65 to 18,911.78 in the same period.

Volume tobacco production for all tobacco types increased by 7.8% (from 43.2 M kilos in 2018 to 46.6 M kilos valued at PhP3.914-B in 2019.   

Revenue from excise taxes for 2019 is at PhP132.49-B, which is a 6.3% increase from the PhP124.14-B collection in 2018.

Export of unmanufactured leaf tobacco decreased by 8.8% from 37.91 million kilos in 2018 to 34.58 million kilos in 2019; with a corresponding 14.2% decrease in value, from US$158.97 million to US$136.42 million. Manufactured tobacco increased in 2018 to 2019 by 13.6% (from 41.96 M kilos to 48.57 M Kilos) and a corresponding 15% increase in value, from US$352.09 to US$414.07

Local manufacturers imported a total of 82.38 million kilos of unmanufactured leaf tobacco in 2018 to 73.95 million kilos valued at US$289.38 million in 2019, or a reduction of 10.2%. Importation of manufactured tobacco in 2019 reached 10.03 million kilos, valued at US$96.75 million.

 

Programs/Projects/Activities

The highlights of the accomplishments of the Agency for 2019 involved priority programs, projects, and activities (PPAs) pursuant to its primary mandate and thrust, “to improve the economic and living conditions and raise the quality of life of the tobacco farmers,” and in line with the Department of Agriculture’s directive for “Masaganang Ani at Mataas na Kita,” particularly on increased productivity and income of farmers through provision of production assistance for quality production and other interventions. The PPAs were funded in the 2019 General Appropriations Act by virtue of SAGF-151 charged against R.A. 4155 (Tobacco Fund) as well as its Corporate Funds.

 

I. Technology Assistance, Extension and Production Support Services 

  1. Integrated Farming and Other Income Generating Activities Project (IFOIGAP)
    1. Tobacco Farmers’ Production Assistance/Tobacco Contract Growing System (TCGS)
      • The TCGS promotes a market-oriented approach in tobacco production through the adoption of a contract-growing scheme, to enhance participation of the private sector in production technology transfer, credit assistance and leaf marketing. Production/credit assistance per hectare averages PhP40,000 with a 20% subsidy on fertilizers/pesticides. For CY 2019, the NTA assisted a total of 6,613 tobacco farmers tilling an aggregate area of 4,322 hectares. The total production assistance extended was PhP120.53 million.

        Yield obtained under the TCGS across all tobacco types was at 2,484 kg/ha, which is higher than its 2,410 kg/ha target.

        Average net income across all types of tobacco increased by 24.64% from the 2017 baseline of P70,000 per hectare to PhP87,250 per hectare in 2019.

    2. Rice Production Project 
      • As an IFOIGAP component, the Rice Project Wet Season is implemented in line with the rice self-sufficiency program of the government led by the Department of Agriculture, to augment the income of tobacco farmers. Farmer-cooperators are granted production/credit assistance to an average amount of P20,000 per hectare with a 40% subsidy.

        A total of 3,527 farmer-cooperators with an area of 2,819.75 hectares were granted production assistance in CY 2019, in the total amount of PhP48.89 million

    3. Renewable Fuelwood Energy Farm Project
      • The project aims to address the fuelwood and other forest resources requirement of the farmers in the curing of Virginia and other types of tobacco, as well as assist in the reforestation efforts of the tobacco growing regions. 

        For the Synchronized Tree Planting component, about 767,000 seedlings were planted in July 2019 in various areas in Regions 1, 2 and Abra, participated in by government agencies, SUCs, LGUs and other groups. This brought to a total of 6.3 million trees planted since the start of the project in 2013.

        For the Kahuyang Pangkabuhayan at Pangkakalikasan (KPP), the agency conducted inventory of trees and assistance in completing documents for the harvest and transport of 2013-2017 plantation covering 8,326 hectares and involving 7,726 farmer cooperators.

  2. Tobacco Farm Mechanization Program
    The TFMP is a five-year program to modernize the conduct of field activities on tobacco production and this is done by applying in new technologies and using farm machineries and equipment to increase the farmers efficiencies of labor utilization and increased productivity/income. All assistance provided have subsidy of 20 percent (%). For 2019, the agency distributed 26 farm tractors and 50 hand tillers worth PhP39.66 million to 28 cooperatives and associations with 2,277 farmer members. The initial fund for the program was sourced from the Corporate Fund and it was proposed that future funding will be sourced from the Tobacco Fund (RA 4155).
  3. Curing Barn Assistance Project
    Curing Barn Assistance Project (CBAP) addressed the tobacco farmers’ need for new curing barns to replace old/damaged ones that have been destroyed by calamities that hit the Ilocos region in the recent years. For 2019, a total of 4,000 tobacco farmers were given PhP100 million worth of assistance for construction/repair of their curing barns and curing sheds.
  4. Seed Production Distribution
    For seed production and distribution, a total of 52 kg of seeds were distributed to about 10,400 tobacco farmers.
  5. Farmers Organizational Development
    The agency, through its Farm Technology and Services Department (FTSD), assisted 377 cooperatives and associations of farmers in organizing, capability building and livelihood training. It has trained 603 farmers, higher than its 450 target in alternative livelihood. FTSD also started updating the Tobacco Farmers Registry.
  6. Communication Support, Education, and Information Campaign
    The “Oras ni Mannalon ti Tabako” Radio Program in six radio stations in Region 1 and Abra show up for the weekly broadcast to make sure that our tobacco growers and the rest of our stakeholders are given relevant information, especially on trading matters and those concerning government interventions for our affected farmers of the pandemic. The OMT program, agency website and official social media accounts helped in intensifsying the information advocacy of the agency and programs of the Department of Agriculture.

II. Technology Assistance, Extension and Production Support Services

On Agricultural Research, we conducted Seed Production, Tobacco Germplasm Collection, Maintenance and Characterization to preserve the various seed varieties of tobacco. Other researches with ongoing field trials by the FTSD include Evaluation of Batek Tobacco Varieties Commercially Grown in La Union and Pangasinan for NSIC Registration, and protocol researches or Fertilizer Trials on various Inorganic and Organic Fertilizers/Pesticides on the efficacy on various types of tobacco.  

Our Industrial Research Department (IRD) is conducting studies on alternative uses of tobacco, which include “Scale Up Production and Demonstration Trails on the Use of Tobacco Leaf Extract Ointment against Diseases of Animals”; Tobacco Handmade Paper production: technology enhancements and prototyping of novelty items”; and “Spent Tea Leaves and Tobacco Dust as Additive to Plywood Adhesive”, spearheaded by the FPRDI, Los Baños, Laguna.

Our Soil and Water Laboratory in Batac City provides Analytical Services specifically on the Monitoring of Soil and Water Quality of tobacco areas. The Quality Assurance Division and its Laboratory conducts Physical and Chemical Characterization of Tobacco Leaf and Tobacco Products. On Capability Enhancement for Quality Assurance, the IRD conducted training on the Harmonized Grades of Tobacco, with 100 participants, composed of TPROs, Agriculturists, Tobacco Company Graders and Farmer Leaders.

 

III.  Regulatory Services 

In the exercise of its regulatory authority, the Regulation Department has supervised tobacco trading operations from February to August, set up of floor prices for tobacco through the conduct of the biennial tripartite conference in September, and implemented regulatory procedures on the redrying, preliminary processing of tobacco leaf, and the regulation of importation and exportation.

On the aspect of monitoring/enforcement, the NTA assures equitable trading to include, accurate weighing, proper grading, proper pricing, prompt payment and proper documentation, pursuant to existing rules and regulations. These activities are implemented by Regulation Department in the Central Office and the Tobacco Production and Regulations Officers in the eight Branch Offices in Regions I, II and Abra.

The RD, in compliance with the Rules and Regulations on the trading of locally grown leaf tobacco, issued licenses to 36 trading centers, Permit and Authority to Purchase to 14 wholesale tobacco dealers, and Permit and Authority to Redry to three redyring plants. Also in compliance with the existing Rules and Regulations on the Exportation and Importation of Unmanufactured/Manufactured Tobacco, RD has issued 39 Licenses/Authority to Export, 63 Licenses/Authority to Import, 13 Authority to Transship leaf tobacco and tobacco products, and 25 Accreditations to Manufacturers. 

  1. Roadmap Development
    • The agency started formulating the Sustainable Tobacco Enhancement Program (STEP), a five-year plan and roadmap for the development of the tobacco industry following the 8 paradigms of the Honorable Secretary of Agriculture toward agribusinessizing and increasing agricultural and rural enterprise productivity and using farm clustering and block farming as main strategy in generating more jobs, and raising farmers income. The draft outline was initially presented to Agriculture Secretary William Dar during the meeting of the NTA Governing Board.
  2. Other Significant Accomplishments
    • To cut excessive red tape and make it easier to start and operate a business in the country, the agency revised the Citizen’s Charter, following the prescribed processing time and standards of the Anti-Red Tape Authority for fast, efficient, convenient, and reliable service, and started the implementation of the complaint and feedback mechanism system.

NTA passed recertification audit for ISO 9001:2015, after an audit conducted by the international certification body Société Générale de Surveillance on July 24 to 26. The latest version of ISO 9001:2015 incorporates risk management to enable organizations to identify and provide a systematic approach to risk for more efficient quality management system.

 

Prepared by: 

Corporate Planning Dept. with reports from Farm Technology Services Dept., 

Central Office Depts. and Branch Offices

2018

National Tobacco Administration
Accomplishment Report on Programs/Projects

Technology Assistance, Extension and Production Support Services:

1. Integrated Farming and Other Income Generating Activities Project (IFOIGAP)
 

1.1. Tobacco Contract Growing System (TCGS)

A total of 5,838 tobacco farmers with an area of 3,600 hectares, were extended production assistance in the form of cash, fertilizers, pesticides and suckecides for crop year 2018-2019. There as an increase of 26% in the number of farmers (from 2017-2018’s 4,617). Area planted also increased by 27%, from the previous year’s2,841 hectares. Total production assistance extended to date,amounts to PhP79.3 million. Thisrepresents the cost of fertilizers/pesticides 20%of the which, aregiven as subsidy to the farmers in CY 2018. 
  1.2. Seeds (80.24 kgs) of true-to-type tobacco varieties were distributed to TCGS farmer-beneficiaries free of charge. 
 

1.3. Rice Production Project 

A total of 2,426 farmer-cooperators with an area of 1,897 hectares, were granted production/loan assistance in CY 2018, in the total amount of PhP20 million.Most of the tobacco farmer-beneficiaries however, were affected by typhoon “Ompong”. Thus, to help the farmers, the Governing Board passed a resolution to lengthen their paying period to 7 years from the original after-season payment scheme. 

2. Curing Barn Assistance Project (CBAP)

A total of 3,336tobacco farmers were extendedassistance for construction/repair of their curing barns and curing sheds. The total subsidy of PhP50 million was released/obligated for the year.A subsidy of Php10,000 was likewise allotted for every repair/construction and the remaining amount to be paid in 4 years.

Due to typhoon Ompong, some curing barns were damaged, thus the agency extended a PhP2,000.00 cash assistance for those affected.

3. Irrigation Facility Assistance/Farm Tractor Support Project

Facility assistance for the purchase of water pumps were granted to 65 of tobacco farmers of Abra, while 50 tractor units were loaned out to tobacco-based cooperatives in the tobacco-producing provinces of Regions 1, 2 and CAR (Abra). These were funded by the agency’s Corporate funds.

4. Livelihood Training Courses for Tobacco Farming Families 
  a. Agripinoy Food Processing Plant and Training Center 
    a.1 With the availability of the facilities of the plant located in Narvacan, I. Sur, 20 trainees have undergone training on Hog Butcheringwith the funds and expertise coming fromTESDA, Ilocos Sur; 
    a.2 A total of 498 hogs were purchased amounting PhP6.75 M, which were processed into various meat products by the plant and were sold in the nearby provinces.  
    a.3 The agency conducted orientation to the proposed availees of the Hog Fattening for CY 2019; 
  b. Farmers Organizational Development 
    b.1 Trainings on food processing, noodle, bread and pastry making, agro-mechanic and sari-sari store managementwere given to the different provinces in Regions I, II and CAR. A total of 1,269 tobacco farmers/dependents were trained. This is in coordination with TESDA and other resource persons. 
    &b.2 To develop farmers capabilities in organization devt. and management of cooperatives, trainings were conducted to 102 tobacco farmers in the aspects of audit management, conflict management and parliamentary procedures.nbsp;

5. Communication Support, Education and Information Campaign

  1. Published and distributed Philippine Tobacco News, a bi-monthly newsletter, including its Ilokano Edition, exclusively for farmers.
  2. Implemented the “Oras ni Mannalon ti Tabako” radio program to disseminate technologies and other information related to tobacco production and other projects of the NTA.

6. National Tobacco-Free Education for Tobacco Farmers’ Dependents (pursuant to R.A. 9211)

Since 2012 up to the present, a total number of 1,360 dependents of tobacco farmers have been assisted through this program. They were enrolled in various SUCs in Regions I, II and CAR. 291 have graduated, out of which, 152 are already employed.For SY 2017-2018, 246 students were added to the list.

II.  Research and Development Services

On Agricultural Research, Tobacco Germplasm Collection, Maintenance and Characterization is continually implemented to preserve the various seed varieties and the Monitoring of Soil and Water Quality in the Different tobacco growing provinces. These is being implemented by the Farm Technology Services Dept.

Under the Industrial Research Department, studies were conducted to find alternative uses of tobacco, one of which was the “Scale Up Production and Demonstration Trails on the Use of Tobacco Leaf Extract Emulsion”; Tobacco Handmade Paper production: Technology enhancements and prototyping of novelty items”; and “Spent Tea Leaves and Tobacco Dust as Additive to Plywood Adhesive”, spearheaded by the FPRDI, Los Baños, Laguna.

On Capability Enhancement for Quality Assurance, a total of 458 participants composed of TPROs, Agriculturists, Tobacco Company Graders and Farmer Leaders were trained on the Harmonized Grades of Tobacco. Two training centers were provided funding under RA 4155 for the establishment of training centers in Abra and Tagudin, Ilocos Sur.

III. Regulatory Services

This program involves the exercise of regulatory authority of the NTA, to include the supervision of tobacco trading operations, the setting up of floor prices for tobacco through the conduct of the biennial tripartite conference, the implementation of regulatory procedures on the redrying, preliminary processing of tobacco leaf and the regulation of importation and exportation.

On the aspect of monitoring/enforcement, the NTA assures equitable trading to include, accurate weighing, proper grading, proper pricing, prompt payment and proper documentation, pursuant to existing rules and regulations.

There were various commodity clearances/import/export permits issued to57 Importers/Exporters/Manufacturers and Licenses were likewise issued to Trading Centers/Wholesale Tobacco Dealers/Redrying Plants.

IV. Infrastructure projects include the following:

  1. Construction of Training Centers in Abra and Tagudin (funded by R.A. 4155);
  2. Repair of Branch Offices damaged by typhoon Lawin (Vigan, Cagayan, Candon, Batac, Agripinoy, Tobacco Dust Plant) funded from Corporate funds.

2017

View full report

2016

National Tobacco Administration
Highlights of Accomplishments

Amidst formidable issues and challenges in the immediate past years which were foreseen to exert negative impact on the industry (to include, aggressive global campaign against tobacco and smoking, increasing health consciousness, increasing domestic taxation of tobacco, e.g. R.A. 10351, and increasing import liberalization and global competition) NTA continued to be aggressive in its performance to fulfill its twin mandate, to improve the lives of our tobacco farmers and all those who depend on the industry for their livelihood and promote the balanced and integrated growth and development of the tobacco industry to help make agriculture a solid basis for industrialization, resulting to some significant feats in the development of the local tobacco industry for the ultimate benefit of its stakeholder, especially the tobacco farmers.

We note herewith that, the industry provides livelihood and sustenance to about 2.9 million of stakeholders, including the more that 800,000 tobacco farmers and their families; in 2016, it generated PHP85.93 B in excise taxes, excludingother fees and duties, which help the government fund its education, health, welfare, infrastructure and economic programs over the country under RA 10351;

Based on PSA-BAS data, tobacco remained as one of the top ten agricultural exports at an average of 30.41 mt valued at US$227.62 B for manufactured tobacco, and 32.55 mt valued at US$104.51unmanufactured tobacco, for the period 2011-2015.

TOBACCO INDUSTRY’S PERFORMANCE FOR 2016

Number of tobacco farmers and tobacco farm area (in hectares) both decreased by 6%, from 46,531 to 43,625 and 32,761 to 30,648, respectively;

Volume of production showed a decrease of 10%, at 47 million kilos,valued at PhP3.45 billion.

Revenue from excise taxes as of December 2016 is at PhP85.93 billion, which is 12% lower than CY 2015’s collections were at PhP97.40 billion.

Export of unmanufactured leaf tobacco decreased by 9% from 36.64million kilos to 33.36 million kilos; with the corresponding 3% decrease in value, from US$134.78 million to US$131.06 million;

Local manufacturers, imported a total of 52.11 million kilos of unmanufactured leaf tobacco for 2016, from 63.34 million kilos in 2015, or a reduction of 18%. Including manufactured tobacco, importation totaled at 57.52 million kilos, valued at US$282.76 million.

PROGRAMS/PROJECTS/ACTIVITIES

The Agency’s programs and projects are anchored on the societal goal of “rapid, inclusive and sustained economic growth”,its sectoral goal as stated in the Medium Term Philippine Development Plan (MTPDP) 2011-2016, “competitive and sustainable agriculture and fisheries sector” and in response to its intermediate outcome of “sustained viable tobacco industry”.

It is also in line with the MFOs and targets in its Performance Scorecard with the GCG, wherein the following were accomplished in 2016:

MFO 1: Production Assistance:

Integrated Farming and Other Income Generating Activities Project (IFOIGAP)- Market-Driven Quality Tobacco Production:

a. Tobacco Contract Growing System (TCGS)

TCGS is a market-oriented production system that assures the tobacco manufacturers and exporters of the volume and quality of tobacco they need; and, at the same time, assures the farmers of the technology, production assistance, technical assistance from seedbedding to delivery of produce, ready market, proper grading, accurate weighing and better prices for their produce, including incentives for good performance, like production quota, 100% delivery, prompt repayment and high nicotine, among others.

For calendar year 2016 (covering end of crop year 2015-2016), NTA assisted a total of 3,493 tobacco farmers. The total production assistanceextended was PhP70.65 million out of the PhP80 millionproposed. Likewise, NTA facilitated the release of production assistance provided by Tobacco Buyer Firms, GFIs and LGUs totobacco farmers.

Volume and Value of Production/Acceptances

Total tobacco production/acceptances documented, to date, is at 47.18millionkilograms, valued at PhP3.45billion, as against 67.66 millionkilograms, valued at PhP4.664 billion, or a decrease of 4% and 0.71%, respectively, as shown in the table below:

2014-2015 2015-2016
TobaccoType Volume (M Kgs)  Value (B PhP) Volume (M Kgs) Value (B PhP)
Virginia 27.54 1.78 23.31 1.57
Burley 17.29 1.35 17.19 1.36
Native 7.46 0.55 6.68 0.52
Total 52.29 3.68 47.18 3.45

Data source: NTA Regulation Dept. as of Dec. 2016

Yield per Hectare

Yield obtained under the Tobacco Contract Growing System (TCGS) across tobacco types and source of financing CY 2015-16 was at 2,369 kgs/ha, a 7% increase of from CY 2014-15’s 2,210 kgs/ha.

Net Income per Hectare

Average net income across all types of tobacco increased by 54%, from PhP45,063 to PhP69,271 per hectare.

b. Rice Production component

As an IFOIGAP component, this is implemented in line with the rice self-sufficiency program of the government led by the DA, to augment the income of tobacco farmers, by increasing their yield to at least 5tons/hectare.

For CY 2016, NTA provided production assistance to 2,449 tobacco farmers, covering 2,266hectares. Production Assistance totaled PhP20.65 million, slightly more thanthe targeted production assistance for the year of PhP20 million.

c. Agripinoy Tobacco Farmers’ Food Processing and Trading Center

The IFOIGAP includes value-adding/processing, where in 2012, NTA established the Agripinoy Tobacco Farmers Food Processing and Trading Center. The project provides production assistance to tobacco farmers in the production of raw materials- hogs and poultry, which the Plant will buy and process into bagnet, Vigan longaniza, tapa, bacon, etc. and sell to Bagsakan Centers, govt. offices and hospitals in Region 1 and Metro Manila. The Agripinoy milling complex will include a feedmill to cater to the requirement primarily of the farmer-beneficiaries of hog fattening and broiler production.

With regard to its Hog Production Project component, 3,250 piglets were dispersed. Total assistance of PhP27.043 million were extended to 332 farmer-cooperators. As a contribution to the food sufficiency goal of the DA, a total of1,388 hogs were harvested for processing.

d. Renewable FuelwoodEnergy Farm Project and Restoration of Ecological Integrity of the Tobacco Growing Regions

The project, now on its third year, aims to address the fuelwood and other forest resources requirement of the farmers in the curing of Virginia and other types of tobacco, as well as assist in the reforestation efforts of the tobacco growing regions.

For the Synchronized Tree Plantingcomponent, a total of 1,203,333seedlings were were planted in various areas in Region 1, 2 and CAR,participated by government agencies, SUCs, LGUs and other groups.

For the Kahuyang Pangkabuhayan at Pangkalikasan or grow-out plantation module, a total area of 1,144 hectares were planted with 2.86 million tree seedlings (giant ipil-ipil and gemelina). For the bamboo plantation, 402 hectares were planted with 98,490 bamboo seedlings. A total of PhP42.97 million was released for production assistanceto tobacco farmer cooperators of the project.

MFO 2 – Research and Development Services

As part of its integrated production technology development/enhancement, the following studies were conducted by the Farm Technology Services Department: Tobacco Germplasm Collection, Maintenance and Characterization; Improvement of Curing Structures and Processes for Virginia Tobacco;Verification of Vermicompost as Organic Fertilizer for Virginia Tobacco; and various Protocol Researchers on fertilizers in coordination with the private sector.

Under the Industrial Research Department, studies were conducted to find alternative uses of tobacco, one of which was the Tobacco Leaf Extracts for the Control of Mosquitoes. Continuing studies are being undertaken on standards and quality assurance: 1) Annual Physical and Chemical Evaluation of Philippine Grownand Imported Tobacco Leafand 2) Annual Physical and Chemical Evaluation of Manufactured Tobacco Products (Cigarettes). These studies are being conducted to determine thepresence and levels of hazardous chemicals/carcinogenic substances in tobacco and tobacco products, as part of NTA’s regulatory function.

Other Priority Programs and Projects

Tobacco Seed Production and Distribution

The NTA makes available market-preferred, quality seed varieties to tobacco farmers and tobacco companies, to replace the many, old, degenerated varieties the farmers are using. This is intended to enhance global competitiveness, by ensuring consistency in the volume and quality, of leaf tobacco, as required by local cigar/cigarette manufacturers and exporters. For CY 2016, a total of 83 kg.of seeds were distributed to about 8,305tobacco farmers.

Analytical Services

NTA has laboratories at NTA Research and Training Center in Batac, Ilocos Norte and at the NTA Central Office, Quezon City- Quality Assurance Laboratory

Annually, in addition to requests from the various sectors that are being responded, the NTA’s quality assurance activities include the following:

  • Continuing monitoring of soil fertility, chloride determination and water quality of major tobacco growing areas
  • Fertilizer and pesticide analyses
  • Monitoring/Analysis of Physico-Chemical Quality of Tobacco Production, using various technology applications, across locations
  • Monitoring of quality of tobacco leaf and tobacco products being exported and imported

Scholarship Program for Tobacco Farmers Dependents (pursuant to RA 9211

For the year, the NTA continued the scholarship program for tobacco farmers’ children, pursuant to RA 9211, Tobacco Free Education Program (TFEP) and in affirmation to the Administration’s thrust of giving priority to the primary stakeholders of the industry, the tobacco farmers. As of date it has extended financial assistance to of 365 scholars, enrolled in 4-year and vocational/technical courses, in state colleges and universities in Regions I, II and CAR.

Communication Support Program

  • Conducted continuing active consultation with the tobacco private sector and tobacco farmers groups on matters affecting the local tobacco industry, amidst the global campaign against tobacco and smoking, including the legislative agenda in both houses of congress;
  • Implemented the “Oras ni Mannalon ti Tabako” radio program in 3 provincesin Region 1, with a total of 60 broadcasts,  for a more active information dissemination and consultation, and reach out to far-flung areas of the regions; and,
  • Distributed 8,000 technocalendars to tobacco farmers and other stakeholders;
  • Distributed 18,000 copies of Tobacco Production Manual (In English/Ilocano dialects) to tobacco farmers and stakeholders
  • Published a quarterly newsletter, “The Tobacco News” and 4 press releases

Other Significant Accomplishments:

  • NTA is already ISO 9001:2008 Certified (on 3 business processes: Technology Assistance and Production Support Services, Research and Development, and Regulatory Services);
  • A Customer Satisfaction Survey was conducted by Ilocos Sur Polytechnic State College and obtained a 4.50 Rating, or Excellent/Extremely Satisfied; and
  • Conducted Competency-Based Trainings, the output of which will be the NTA Manual on Competency  Based Human Resource Devt.

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