TOBACCO MARKET PROGRESS
The market has so far traded 39.1 Million Kg of burley at an average price of 1.68 USD per Kg. The same period last year had sold 16.8 Million Kg at 1.71 USD per Kg.
Auction sales have totaled to 15.1 Million Kg, traded at an average price of 1.99 USD per Kg; and the Contracted burley volume of 23.4 Million Kg, has been sold at 1.97 USD per Kg. Prices continued to improve in both Contract and Auction sales compared to a few weeks ago.
The week average price is 1.71 USD per Kg compared to last week’s 1.58 USD per Kg. First quality leaf has been attracting around 2.80 USD per Kg. No sale rejection still hanged at around 2% as previous week.
More and more Flue Cured is now coming onto the market and prices are better and more stable than in the opening week. The highest offer has been 4.40 USD per Kg, for first and second quality leaf (L1O and L2O) grades.
To date 2.2 Million Kg havebeen sold at 2.69 USD per Kg, compared to 5.9 Million Kg sold at 3.13 USD per Kg last year the same time.
Around 199 Thousand Kgs have been sold at 2.41 USD per Kg.
Comparatively same period last year had sold 65 thousand Kgs, at an average price of 2.45 USD per Kg.
PREMIUM TAMA TOBACCO LTD ESTABLISHES A PROCESSING COMPANY
Resultant to TAMA’s strategic plan to partner with an offshore tobacco merchant which has resulted in creation of Premium Tama Tobacco Limited (PTTL), it is now pleasing to note that the company is in the process of establishing a Tobacco Processing Company. TAMA now owns 9.99% stakes in this venture.
Pursuant to the 25% stakes that TAMA has been offered, the Executive resolved to form special Purpose Vehicle (SPV) called TAMA Tobacco Processors Limited to champion the issues of share holding in the company. Continental Discount House Limited were appointed as arrangers for management of the SPV to spearhead the process. It is envisaged as per the resolutions by the Executive that TAMA members will be offered to buy shares pro-rata to their levy contribution last year’s levy as a benchmark. Council will be kept posted on the progress of the same.
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