Online Reporter
Business Reporter
Tobacco prices across the country’s auction floors firmed significantly over the course of the marketing season, culminating in a late-season rally that delivered strong returns for farmers. An analysis of floor data from the Tobacco Industry and Marketing Board reveals a reasonably competitive marketing season characterised by better mid-season pricing and an industry-wide upward adjustment in the past two weeks, defying the traditional late-season price slumps.
However, overall prices — including contract prices — were generally lower due to a global oversupply, driven by successive record domestic harvests and high production in other major tobacco-producing nations like Brazil.
While auction prices have generally firmed across the board, a company-by-company breakdown highlights how each auction floor has performed over the 74 days.
Ethical Sales Floor (ESF,) maintained its position as the market leader, consistently commanding a premium across all phases of the season.
ESF, which started operations this season, opened on day two at US$1,80 per kilogramme and reached its highest level of the season, hitting US$2,16 per kg during the mid-season high.
The floor also demonstrated the most aggressive late-season resurgence, rallying by 10 cents from a late low of US$1,85 on day 62 to US$1,95 per kg. Tobacco Sales Floor (TSF) delivered a stable and competitive performance throughout the year.
Opening at US$1,60 per kg on day 2, TSF steadily gained ground to breach the two-dollar mark by day 18 (US$2,02) and went on to hit a seasonal peak of US$2,12 per kg.
TSF prices firmed from US$1,89 on day 62 to US$1,93 per kg, closing the gap with the market leader. Meanwhile, Premier Tobacco Floor operated at a lower price point but demonstrated consistent upward momentum.
Opening at US$1,43 per kg, Premier steadily climbed to breach the two-dollar threshold by Day 19 (US$2) and achieved a peak of US$2,09 per kg. Despite trailing the other two floors in absolute value, Premier mirrored the broader market trend at the tail end, firming from US$1,68 on day 62 to US$1,72 per kg.
The defining feature of the season was the industry-wide price firming that occurred after day 62.
Typically, tobacco prices soften in the final weeks of the season as lower-quality cleanups and scrap tobacco dominate delivery. Instead, robust buyer competition drove a late-market recovery.
The late-season push—which saw ESF climb 10 cents, while TSF and Premier gained 4 cents each—ensured that late-delivery farmers were protected from the seasonal price collapse.
Despite farmers producing and selling more tobacco than last year, a global oversupply caused prices and total revenue to drop significantly. Total tobacco already sold is up 9 percent, reaching 338,27 million kg, up from 311,23 million kg in 2025.
Revenue dropped by 19 percent, falling to US$845,5 million, down from US$1,04 billion in 2025. The average market price fell by 26 percent to US$2,50 per kg, down from US$3,36 last year. The vast majority of tobacco was sold through company contracts rather than independent auctions.
Contract sales made up 92 percent, representing 311,54 million kg, realising US$795,16 million at a higher average price of US$2,55 per kg. Auction sales accounted for just 8 percent of sales or 26,73 million kg, earning US$50,33 million at a lower average price of US$1,88 per kg.
Total rejected bales jumped by 57 percent to 181,862 bales.
Independent auctions suffered the worst, with a 9,48 percent rejection rate, compared to a much higher 3,8 percent.
