Raw tobacco exports continue slide
Philippine exports of unmanufactured tobacco totaled $94.59 million in 2024, down by 6.5 percent from $101.13 million a year ago, due to various factors affecting cultivation, according to the National Tobacco Administration (NTA).
These goods, which have not been processed for making cigarettes or other tobacco products, consist mainly of tobacco leaves.
The volume of outbound unmanufactured tobacco shrank by 14.2 percent to 17.8 million kilograms from 20.75 million kg, based on data from the NTA.
In terms of value, unmanufactured tobacco exports had been on a downtrend from 2022 to 2024.
According to the NTA, Indonesia was the leading destination of unmanufactured tobacco exports last year. The commodity is also shipped to the United States, Taiwan and the Dominican Republic.
Universal Leaf Philippines Inc. (ULPI) has retained its standing as the country’s top exporter of unmanufactured tobacco since 2019. Last year, ULPI shipped out 14.14 million kg of cargo valued at $111.97 million.
JTI Asia Manufacturing Inc. was a distant second with 1.9 million kg worth $3.12 million. Continental Leaf Tobacco Philippines Inc. came third with 747,210 kg ($3.9 million).
Trans Manila Inc. and PMFTC Inc., meanwhile, shipped $1.8 million and $795,761.30 worth of unmanufactured tobacco, respectively.
Meanwhile, the NTA also said exports of manufactured tobacco reached 3.7 million master cases of cigarettes last year as of Oct. 31, 2024. This meant a drop of 30.3 percent.
Shipments of heated tobacco products slumped by 72.2 percent to 10,637 sticks.
Further, unmanufactured tobacco imports amounted to $115.87 million last year as opposed to the 2023 value of $229.47 million kg.
The country imported 30.59 million kg of unmanufactured tobacco in 2024, a reduction of 39.9 percent from 50.88 million kg.
Despite this, the NTA is projecting 51.12 million kg of unmanufactured tobacco imports and 22.89 million kg of exports.
Nestor Casela, NTA Deputy Administrator for Operations, said China as the largest tobacco producer worldwide reduced its exports, resulting in the shortage of tobacco supply.
In his presentation during the 2nd International Tobacco Summit, Casela said Philippine-grown tobacco has become globally competitive due to higher prices.
He said various factors affect the tobacco industry, such as the escalating cost of farm inputs and changing market demands.
Other reasons include the unavailability of labor force, climate change and the proliferation of smuggled tobacco following the increase in excise tax.
