Home » General » MTC Invests U.S$37 Million in Tobacco Inputs

Mashonaland Tobacco Company (MTC) invested $37 million in inputs given to 12 600 farmers who grew tobacco on a contract basis during the 2013 14 agricultural season, Parliament heard on Tuesday.

Appearing before the Parliamentary Portfolio on Agriculture, Lands and Irrigation MTC managing director Kenneth Langley said the company’s investment in contract tobacco had sharply increased over the years.

“Our investment in contract tobacco growing has increased from $21 million to nearly $37 million.

“We have invested in supplying inputs and finance to our growers,” he said.

Mr Langley said 74 percent of total tobacco produced under BTC’s out grower scheme came from small holder growers with the remainder coming from large and medium scale growers.

“Out of the 12 600 growers we financed this season, only 35 are large scale farmers,” he said.

MTC is the largest single contractor of small holder tobacco farmers in Zimbabwe.

The firm, which ventured into contract growing in 2004, has been operating as a leaf merchant in Zimbabwe since 1936 and supplies packed tobacco to global markets.

Mr Langley said contract farming provided farmers with a guaranteed market of tobacco.

“For us it gives us a stable and sustainable tobacco base to supply our clients.

“Contract farming accords us traceability of tobacco which many blue-chip companies want, we are able to trace back to source where that leaf was produced,” said Langley.

Source : The Herald