The Premium Group deals in Flue Cured Virginia (FCV) and Dark Fired Cured (DFC) tobacco types for export markets. PATL contracts with primary societies, in the south west and south of the country, whose members are all small- scale farmers. PATL has built up an extensive agronomy team to support the contracted growers. All tobacco purchased is processed at a third-party leaf processing factory.
PATL’s market share has been growing annually and has established a primary position in the market.
Since the introduction of the crop in the country, tobacco farmers organized themselves into cooperative societies. The groupings of the primary societies were in line with the regional administrative boundaries with the basic organization as an agricultural marketing and cooperative society. A typical society has between 200 – 400 members. These members come from one or more village in “close” proximity. The country has approximately 350 registered primary societies. There are few farmers who grow tobacco outside the cooperative movement. They constitute less than 2% total growers.
The industry is administered by the Tanzania Tobacco Board (TTB) and 100% of the crop is grown through a tripartite contract farming between Primary Societies, Financiers and leaf merchants.
All crop inputs to be used and corresponding prices are set by the Tanzania Tobacco Council (TTC). Primary societies acquire loans through financers to purchase approved inputs which are paid back through tobacco sales.
