Tobacco farmers have received a total of 7.3bn/- (US$3.7 million) in subsidy as part of contract farming obligation strategy by Alliance One tobacco company

This funding is directed at these farmers for only two years, from the 2023/24 agricultural season to the 2024/25 season, and so far, 3.5bn/- (USD 1.3 million) has already been disbursed to benefit them in the country.

The company’s spokesperson, Advocate John Magoti, stated this during a visit by a 60-member delegation including parliamentarians, Councilors, and experts from the Uyui District Council in Tabora region, who visited the Alliance One tobacco factory located in Morogoro region.

He informed them that the funds received by the farmers this year aim to alleviate their burden of input loan debts after facing natural disasters, including heavy rains that damaged their tobacco crops, leading to poor harvests.

He noted that the remaining funds, which totals 3.8bn/- (USD 1.5 million), will be allocated to farmers in the upcoming 2024/25 season for use in building modern tobacco curing barns, hence greatly contributing to post-harvest losses reduction, which typically range from 20 percent to 30 percent.

He explained to the guests that the company, in collaboration with stakeholders, has constructed large warehouses for storing tobacco in Tabora region, where collective purchasing of the crop also takes place over a short period.

"Thanks to the existence of these warehouses where we buy tobacco collectively, the purchasing period is now just 44 days, compared to before when it took up to six months," he said.

While at the factory the visitors witnessed the processing of the crop grown in their districts, they praised the company’s leadership for maintaining high-quality operations and commended the technology used in adding value to the crop, which is fundamental to their livelihoods.

The Chairperson of the Uyui Council, Said Shaban Ntahondi, stated that their visit aimed to determine whether what they hear about the company aligns with reality.

"We have seen significant investment in this company, and this gives us confidence as leaders and our farmers that they are committed to collecting large quantities of tobacco produced by our farmers," he said.

Mwanaidi Ali Ahungu, a Special Seats Councilor and farmer from Mbola village in Isila Ward, mentioned that they will oversee many activities for the farmers to enable them to produce high-quality crops.

She explained that previously they were unaware of the steps the crop goes through before it reaches the market, thinking it was a simple process.

She noted that during the visit, she and her colleagues saw how machines identify non-tobacco related materials (NTRM) that some farmers mix with tobacco to increase weight on scales, thereby damaging the quality of the crop.

"After this visit, my colleagues and I will be good ambassadors for these industries to encourage farmers to produce high-quality crops and avoid mixing with any impurities," she said.

Uyui Member of Parliament Almasi Athumani Almasi Maige expressed that what they witnessed exceeded their expectations, as they saw how well the tobacco is prepared before being sent to the international market, thus enhancing the quality of Tanzanian tobacco in global markets.

"We saw today that this factory is a mother factory as it processes tobacco from other companies that also buy tobacco here in the country," he said.

He thanked Alliance One for being the only company so far to provide subsidies to farmers affected by rain disasters that impacted their yields.

Additionally, the Deputy Chairperson of the council, Shaban Italambula, who is also a farmer, said the subsidy support is not mere rhetoric, but a reality, as he has received over 13 million shillings.

"I received a total subsidy of 13m/- from selling my tobacco to the Nguruumoja and Mwiitikila Amcos associations, where I sold 13,000 kilos, as we were paid subsidies based on the amount of kilos sold," he stated.

He expressed satisfaction with the number of people employed at the factory, particularly women who are sorting the crop.

In giving thanks, the Administrative Secretary of the council, Neema Mfugale, stated that what they observed aligns with what they have been hearing.

"Tobacco is our economy. After leaving here, we will tell the citizens to increase their production rates as the market is available," she said.

Regarding the subsidy for tobacco curing barns, she mentioned they will encourage farmers to build modern barns and properly keep the tobacco to achieve better grades that meet quality and cleanliness standards.