An Overview of the Policy and Market Landscape of Tobacco Production and Control in Mozambique

Abstract

Background: Tobacco growing has been considered a mainstay of Mozambique’s economy, but there is a dearth of analysis of the tobacco policy landscape in the country. Methods: Review of government and non-government documents and academic papers addressing Mozambique’s tobacco-growing history, the changes in the political economy of tobacco, and health policies addressing tobacco use and prevention of noncommunicable diseases. Results: Despite its tobacco growing and exporting history, the contribution of tobacco to the economy has been in steady decline in the past two decades, including in the areas dedicated to growing. At the same time there has been an increase in multinational control of the tobacco economy. In parallel, Mozambique’s commitment to addressing the growing burden of noncommunicable disease and accession to the Framework Convention on Tobacco Control indicate a potential for internal government tensions to balance immediate economic interests with long term health goals. Conclusions: With the decline in tobacco share of the overall economy, Mozambique may be well-positioned to explore alternative, sustainable livelihoods for farmers that grow tobacco, but it must overcome inter-sectoral barriers and advocate for a whole of government approach to address the health and economic impact of tobacco.

Tobacco industry presence and practices in Mozambique: a ‘chaotic’ but worthy market

“…Dimon, which was the second largest independent leaf tobacco merchant in world and present in Mozambique since the mid-1990s, merged with Standard Commercial Corporation to form Alliance One in 2005,33 which eventually abandoned its concessions in the 2007 agricultural season 2. The other companies have either departed from Mozambique or, in the case of JFS, abandoned the tobacco crop altogether 2 14. As a result, MLT, a subsidiary of Universal Leaf Corporation that specialises in the production and processing of tobacco leaf, has dominated the tobacco supply chain in Mozambique since 2007 2.…”

“…In 2018, Mozambique was among the top five tobacco producers in Africa, accounting for 12.9% of the 722 187 tonnes of tobacco produced on the continent 4. Production is concentrated in 2 of the 11 provinces, Tete and Niassa 14. Cigarette companies operating in Mozambique include British American Tobacco (BAT) and Emperor Tobacco (which is also a distributor for Japan Tobacco International South Africa) 15 16.…”

Tobacco farming: overcoming an understated impediment to comprehensive tobacco control

“…16 17 The contract arrangements allow farmers to take essential inputs such as seeds, fertilisers and pesticides on loan to be paid back on selling their leaf to the lender. [18][19][20] Studies find that contract tobacco farmers pay higher prices for inputs. 21 Because of poor access to affordable transportation, tobacco farmers who live far from economic centres are more likely to engage in contract farming to ensure transportation of their leaf to the market.…”

“…For example, in Kenya, governments do not invest resources towards research on tobacco farming, leaving information on tobacco growing to the industry, who usually provide information that suits their narrative 16 17. The contract arrangements allow farmers to take essential inputs such as seeds, fertilisers and pesticides on loan to be paid back on selling their leaf to the lender 18–20. Studies find that contract tobacco farmers pay higher prices for inputs 21.…”

“…Contract tobacco farmers must sell their leaf to these leaf-buying companies. These companies set the grade and price for the leaf, consistently resulting in low prices of tobacco leaf and unfair grading 16 17 20. Tobacco farmers must accept the unfavourable grade and price to avoid the risk of rejection by leaf buyers since they legally have little recourse to sell elsewhere.…”