Agriculture Secretary Francisco P. Tiu Laurel, Jr. is confident Philippine tobacco could make the grade for new smoke-free products that could help reverse the decline in local leaf production and boost earnings for millions of Filipino farmers dependent on the high-value crop.
Speaking at the inauguration of the P2.2-billion manufacturing facility of Philip Morris International and its Philippine affiliate, PMFTC, in Batangas on April 15, the agri chief thanked the US firm for fulfilling its investment pledge to President Ferdinand Marcos, Jr. and continuing support to tobacco farmers and their families.
The new manufacturing lines, which covers around 1.2 hectares in Tanauan City, will produce specially designed tobacco sticks for PMI’s smoke-free products. This marks another milestone in PMI’s drive towards producing novel products and consumables in the country’s cigarette alternative category.
“I understand that local leaf is being considered for inclusion in the production of smoke-free products, including heated tobacco sticks in the new manufacturing lines. I’m confident that our local tobacco leaf will be able to meet this new demand,” Sec. Tiu Laurel said.
The agri chief is optimistic local tobacco farmers will continue to benefit from PMI’s and PMFTC’s efforts to further strengthen domestic manufacturing, especially since they started producing finished and semi-finished goods in their state-of-the-art manufacturing plants in Marikina and Batangas.
“Our government has always recognized PMFTC’s substantial contributions to the Philippine economy and society – providing employment to around 4,500 Filipinos; ensuring the livelihood of our tobacco farmers with their tobacco leaf purchases averaging Php1.8 billion annually; boosting tobacco exports of finished and semi-finished goods; contributing hundreds of billions to the national and local treasury in excise, VAT, income, local business tax, duties, and other payments; and implementing various corporate social responsibility projects,” Sec. Tiu Laurel said.
The National Tobacco Administration estimates that around 2.2 million Filipinos depend on the tobacco industry, including more than 430,000 farmers, farm workers and their families. NTA noted that total volume of locally produced tobacco only constitutes 35% percent of the leaf requirement of tobacco manufacturers.
“Considering the continuing demand for Philippine tobacco exports, the challenge is for us to work together – introduce technological advancements and internationally accepted best practices – to increase and sustain quality domestic production of tobacco leaf,” the agri chief said.
He adde that he is aware of the growing illicit trade of tobacco that is threatening the entire tobacco industry value chain. He vowed to help in the fight against smugglers whose illegal activities adversely affect the livelihood of farmers, legitimate businesses and investments, and government revenues. ###
