by Neyo E. Valdez
GEARING up for the upcoming tobacco season, NTA got commitment for stronger cooperation from cigarette manufacturers, leaf buyers and traders to boost the industry for the benefit of the local tobacco growers.
In a consultative conference at the Central Office in Quezon City on September 10, NTA Administrator/CEO Robert Victor G. Seares Jr. said the cigarette manufacturers, through their representatives, have pledged to increase their purchase commitment for locally produced tobacco.
At present, the local manufacturers are buying 25% of the local production and the agency pushes for a higher rate or at least 45% to sustain growth for the tobacco industry.
“This support is crucial as we enter a tobacco season under the current pandemic which have impacted a lot of sectors, especially agricultural production,” said Seares.
“Our partners from the private sector also agreed to our proposals to come up with their own five-year purchasing plan in line with our medium-term roadmap for sustainable tobacco production, and to submit quarterly report with respect to their local purchases and import data to enhance our data gathering,” he added.
The industry development roadmap is expected to accelerate the modernization and industrialization of the tobacco industry towards increased production and higher income to the farmers for the next five years.
“We always aim to give better opportunities to our growers to earn more for their tobacco venture as this is our major thrust under our administration, and with the support of our key industry players,” said Seares.
Present in the meeting were representatives from Japan Tobacco International (JTI), Atty. Jose Paolo Patajo and Robert Eugenio; and Philip Morris and Fortune Tobacco Corporation (PMFTC), Atty. Anicka Zaragoza and Atty. Archie Gonzales. The representative from La Suerte Cigar and Cigarette Factory, Walter Barrios, joined the virtual discussion.
According to Deputy Administrator for Operations Dr. Roberto R. Bonoan, the meeting provided a more focused discussion on the issues and challenges affecting the industry.
“We need this cooperation as we prepare for the next cropping season under a difficult situation brought about by the pandemic,” said Bonoan.
Directors Rodolfo F. Salanga and Nestor C. Casela, both members of the NTA Governing Board, and NTA Regulation Manager Atty. Rohbert A. Ambros also joined the meeting facilitated by Bonoan.
In a separate meeting on September 14, leaf buyers and traders also gave their commitment to buy more locally produced tobacco for the export market.
Local production last year reached 46.6 M kg, a 7.7% increase from the 43.2 M kg production in 2018. According to Winston Uy, president of Universal Leaf Philippines, Inc., 75% of the local production goes to the export market.
Seares said that the leaf buyers, true to their commitment before the trading season in March, bought all leaf produced by the tobacco growers despite the difficulty of trading activities due to lockdown.
Uy, joined by Matthew Diong of TransManila Inc. (TMI) in the said meeting, assured NTA that they continue making their contract growers to be more efficient with better technology and sufficient production and financial assistance in producing quality tobacco that can compete with the world market. Kingsley Pua of Pentaleaf Corp joined the meeting via JioMeet.
The leaf buyers and the NTA agreed to adopt the policy of market-driven tobacco production. In particular, the leaf buyers encouraged the production of Virginia Topped and Burley Topped this year in response to the current market trends.
