Mutharika says WHO FCTC Serious Threat to Tobacco Production: Commends JTI for Commitment to Support Tobacco Industry

Mutharika says WHO FCTC Serious Threat to Tobacco Production: Commends JTI for Commitment to Support Tobacco Industry

President Mutharika his Vice and Minister of Agriculture

President Professor Arthur Peter Mutharika says tobacco production is still facing a lot of challenges and key among them is the issue of the anti-smoking lobby spearheaded by the World Health Organization Framework Convention on Tobacco Control (WHO FCTC) in order to safeguard human health.

He says Anti smoking lobby has had and will continue to have negative effects on demand for tobacco world-wide and may therefore seriously affect Malawi’s foreign exchange earnings and the livelihoods of tobacco farmers.

“The WHO FCTC is a serious threat to tobacco production since it restricts demand and supply of tobacco products through various strategies, which include restrictions on marketing and consumption of tobacco products.” Said President Mutharika when opening JTI’s new Factory Warehouse Extension and Factory Line Upgrade Project in Lilongwe

“My Government is concerned with this development” he said, “but Malawi cannot stop overnight growing tobacco. We will continue growing tobacco based on trade requirements until when there is no demand.”

He however said his government will continue seeking other alternatives such as Green Belt Initiative, Cotton Up-scaling Programme, and Oilseeds Promotion Programme, a well as encouraging farmers to transition and switch from tobacco to other economically viable enterprises.

President Mutharika further commends JTI for initiating investment that promises future of tobacco industry in Malawi and promised that his government is committed to passing a new laws that support sustainable growing and selling of tobacco, which will protect the livelihoods of the country’s millions of smallholder growers including creating conducive environment for business of tobacco companies.

Tobacco contributes 60% of foreign exchange earnings to Malawi.

Paul Neumann, Senior Vice President of JTI said the new warehouse and substantial upgrades to their tobacco processing line at their site in Lilongwe, is worth more than 5 billion Kwacha and it is JTI’s long-term commitment to the future of tobacco in Malawi.

“Seeing people develop as they learn new techniques in management, contribute to the development of our long-term business strategy, and bring online sophisticated IT projects, makes me confident that JTI is bringing Malawians, and Malawi, further onto the stage of international business.” He said

“That future is bright, but seems at times a long way off. I believe that we are on a journey towards that horizon, together.”

He said JTI apart from continuously supporting its business in Malawi through targeted social and economic investments the company is improving the lives of not only individuals, but of entire communities in order to boost mutual success.

He also mentioned that JTI’s long-term focus on four basic areas among them preserving tobacco growing and related businesses, demonstrate Social and Environmental leadership, and maintain close relationships with growers to achieve a stable long-term supply of tobacco leaf is key to future shared prosperity.

He said the company is convinced that Malawi is a great place to invest because of mutual desire that exists in this area and added that for the past four years JTI invested over 400 million dollars with foreign currency and buying of the leaf apart from other investments in social responsibility and programs on ending child labour.

JTI Malawi operations employ more than 1 300 people and works directly with over 11 000 growers, and after some years since the company terminated its plans to build a cigarette manufacturing plant in the country following government administration delays Mr. Neumann firmly said that their business model does not support such investment now but JTI is not done with other kinds of investments in Malawi.

The newly built warehouse adds additional storage area equivalent to more than two football pitches, while the upgrades to the processing plant (threshing) enhance quality, productivity and safety.