The Malawi leaf tobacco market is characterized by both contract growing and an auction system. LLTC has worked with the Malawi Government and other stakeholders to develop contract marketing so as to promote a direct relationship with the grower and to facilitate the Company’s drive for sustainability in its tobacco procurement program. With small scale contract growing now constituting 80% of the national burley crop, LLTC has contracts with 12,700 growers across all three tobacco types produced in Malawi, providing financial assistance and support in agronomy, good agricultural labor practices and the environment through farmer interaction and training. Additionally, full traceability is established at the farm level.

Together with its affiliated Universal companies in the region, LLTC has a strong commitment to the communities in which it operates, focusing on food security, health, water and education.

In a country where more than half of the population is below the age of 18, LLTC is sensitive to the issue of education and opportunities for the youth, and has a long-standing tradition of supporting schools and sports.

The long dry season and the lack of infrastructure for water distribution makes water a primary need in the rural communities. In addition to constructing wells and boreholes in the communities, LLTC is building water reservoirs in its growing areas to help farmers and communities to have water available for irrigation in the dry season.

LLTC’s commercial tree plantation, consisting of over 2,000 hectares, is on the way to becoming one of the largest local sources of sustainably produced wood and bamboo available to tobacco farmers.

LLTC’s leaf processing factories are also firmly focused on quality, sustainability and innovation. They have piloted the transformation of waste into organic fertilizer, building materials, industrial additives for brick production and useful material for the communities.

Over 85% of the leaf tobacco produced in Malawi is burley. The remaining 15% is FCV (12%) and DFC (3%).