Financial Gazette (Harare)
24 January 2008
Harare — PACKAGING concern Hunyani Holdings has blamed a drop in Malawi's tobacco crop for precipitating the decline in its exports.
Hunyani said the drop in Malawi's tobacco crop in 2007 had resulted in an overall nine percent reduction in the company's export volumes.
"Volumes declined by 18 percent over the prior year.
"Domestic volumes were 24 percent lower and this trend was across all market sectors. The decline of nine percent in exports was attributable to reduced tobacco crop in Malawi...The tobacco crop in Malawi was lower and this reduced exports," Hunyani said in a statement accompanying its latest financials.
Last year, Malawi's tobacco production plunged to 140 million kg, down from 158 million kg the previous season.
However, output of the golden leaf is expected to rise to 150 million kg this season, encouraged by higher prices and good rains.
The listed company, which holds a technical aid agreement with one of its major external shareholders, Nampak of South Africa, exports cartons for processed tobacco to Malawi and other neighbouring countries.
Hunyani said both local and export volumes at its corrugated products division had dropped due to curtailed demand for commercial packaging.
Hunyani, which is the largest and most diverse packaging company in the country, runs four operating divisions and produces a wide and diverse range of paper based and flexible plastic packaging from its factories located in Harare and Bulawayo.
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