Demand for Philippine Tobacco Increases

The National Tobacco Administration (NTA) expects tobacco production
to be stable this year at par with the total growth rates in 2011.

NTA administrator Edgardo D. Zaragoza, in a meeting with agriculture
reporters on Monday, said the projected five percent increase in
tobacco crop production may not be realized this year due to the
frequent rains affecting tobacco producing provinces, particularly
Ilocos Norte.

Zaragoza, however, said production level may reach almost 80 million
kilos this year since other areas, like Cagayan Valley, was not
heavily affected by rains.

NTA Regulation Department data show total crop production rose to
79.33 million kilos in 2011, up 7.54 percent from 78.4 million kilos
in 2010. Virginia tobacco contributed 44.93 million kilos; Burley
tobacco, 18.67 million kilos; and native tobacco, 15.73 million kilos.

Virginia tobacco output is expected to reach 45.73 million kilos this
year; Burley tobacco, 17,63 million kilos; and native tobacco, 15.75
million kilos.

Zaragoza also said that world market demand for Philippine tobacco had
increased.