Despite guaranteed by a loud loud voice of “reward price” for growers of Fleetwood Haiya, director of Nyasa Tobacco Company, the numbers tell a much tougher story for the average Malawian tobacco farmer, by selling purchases of up to $3.30 per kilogram. Far from being profitable, many have owned disappointment, questioning whether the company’s declaration is more than smoke or mirror.
The latest figures from the Tobacco Commission (TC) reveal a 16.6% drop in average cigarette prices this year. This occurs during a period of rapid growth in production costs, tightening the rope around already densely packed farmers. How can businesses claim to offer “rewarding prices” in a season when farmers are less rewarded with reliable metrics?
Worse, the amount of cigarettes sold so far has also fallen free. 14 million kilograms are sold for $31.9 million. This is a 40.6% drop from the same period last year, with 20.1 million kilograms winning $53.7 million. If Nyasa is paying the premium rate, who exactly is benefiting from them? Certainly not the average grower.
President Abier Karima Banda, the Malawi Trust’s Tobacco Association, did not write words. Current figures warn that “no hope for farmers” and that profitability is under serious threat due to high input costs and low selling prices. The numbers are simply not bad. They are devastating for farmers who bet their entire season livelihoods on crops that appear to be the country’s economic lifeline.
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When Fleetwood Haiya says “we are committed to ensuring that quality is rewarded accordingly,” the farmer is right to ask: where is the reward? Many reports are well below the low $3.30 of $1.20/kg/kg, but face inconsistent grading, exploitative contracts and late payments. These “rewards” feel like penalties.
Don’t forget, tobacco is more than just a crop. It is Malawi’s leading forex earner. For the 2025 season, demand was projected to be 223 million kg. But as prices are this poor and farmer morale continues to plummet, its target becomes a dream dream – and the economic ripple effect can be devastating.
This is the real story. Behind the glossy press statement is a serious crisis. The farmers, the backbone of the tobacco industry, are changing shortly as corporate players hone their image. Until companies like Nyasa begin to back up the words with broad, consistent, fair pricing rather than selective press-ready transactions, the promise of transformation remains exactly that: promise.
