Malawi tobacco earnings fall by $218 million

Malawi’s tobacco industry has seen a significant decline in foreign exchange earnings during the 2026 marketing season. After 19 weeks of trading, the industry earned approximately $282.5 million, a decrease of roughly $218 million compared to the $500.4 million realized during the same period in 2025.

The downturn is attributed to a combination of lower sales volumes and falling prices. Total volume sold reached 142.4 million kilograms, down from 197.2 million kilograms in the previous year. Additionally, the average price per kilogram dropped to $1.98, compared to $2.54 in the 2025 season.

Industry data suggests that total earnings for the year could fall by approximately 43 percent to around $300 million. This revenue loss is particularly impactful as it nears the country’s monthly import requirement of $250 million. Contract farming continues to dominate the market, accounting for over 93 percent of total volume sold.