Tobacco Documents Online

~W~/~h 27 June 1991 Suomen '~pak~ 01' PC) ~>x 118 00211 RI~,SI"]I;I~ 21 Finland ~ J~rJ~a 1991 opportunity to m sales, tobaccos purchased agalnst the order placed through BATCo Leaf Department as well as short trlal A, ction sales ue no~ offlciell¥ estlmat~d at 70 million kilo~ {green weight) though many feel 75 milllon kilos (green weight) will be marketed (1990 - 64 milllon kilos (g~een weight}). Despite this Increase in pro~uctlon, overall quallty Is well above awerago perhape the beet czop since 1986. As with flue ~red, the (:EDp had a ~at~/dry start b~t middle season growing condition~ wer~ good; drler-than-noz~al (due to later planting} curing conditions are giving mor~ mottled/spangled than 1990. Much of the increase in crop sloe has team fro~ mll farmers and without any r~gime of "extension ~Ices" both the quality oE the cured leaf as well as grading and packing moisture content is remarkable. There is no doubt that Malawl is moving from a filler calm market and return£ng to belng able to offer high nicotine (circa 4t) flavour tobaccos - without recourse to any new cultlvar. As wit~h flue cured, d~m~d for hurley has been very intense - it is widely held that before sales op~ned the crop was oversold ~y circa 50,. Again, floor pricee have concer~Ina-ed (MX 4.00 to MK 7.90}; the current floor average (MX 7.10 per kilo vs MK 5.17 per kilo 1990 crop) may drop as poor curing becomes more wlslble. Again, buyers show great unanimity as regards share and top price. Other manufacturers/countrles offtakes are estimated to be (tons packed weight): BATCo document for Mayo Clinic 20 June 2002

- 2 - R~TR (USA) NIL (too ex~enslve) PM (USA and Europe) 14,000 ~apan 10,000 Yugoslavia 2,000 Reemts~a 2, La M~derna, Mexico ~ ,500 Tabacalera I, 500 SEITA ~ , 500 It is highly unllkely that there will be any uncommitted stocks of 1991 crop at the end of the currant I%92 production could well be 95 million kilos (green ~elght) - a f~ntastic increase over a two year parlor; dealers are convince~ t.here is the deman~ for ~uch a volume. I was totally satlsfie~ with the visual appearance and smoking characteristics of the trial runs of MBIBF and ~B2. A trial run/lo,ger run of MR4 (not yet fully available on the floor) will be undertaken on my next visit. Nicotine content of the trial run tobaccos averaged: 4.5% 2.5% Details of your order, which our suppliers confirm can b~ supplied are: Grade Order Est Price MB4 56,430 5.24 MBIBF 37,620 5.53 MB2 37,620 5.81 The estimated price |US $ per kilo f.o.r.) is ba~ed on estimated floor prlce, on ~stimat~ yield and on the current exchange rate, M Kwacha ;.00 . US $0.365. I must re-em~haslse that this price is only an estimate - the f0rtnlghtIy progress report you will be receiving will allow you to ~udge green price movements as well as any exchange rate fluctuations. A significant movement in the latter is not considered possible. The value date for all grades has been agreed at 31 October ~99|. ~f you continue to hold your tobaccos in Malawi after the agreed value date a storage charge of MK 2.20 per carton per BATCo document for Mayo Clinic 20 June 2002

- 3 - will be IncurS; interest charges will be levied at :If' y~ ship/pay b~£or~ ~ value ~e the estimated ~rices ~e will ~ ~u~. Shlppin9 ~tAnues to be not ~nly difficult ~t al~ l~st 80 ~y8 ~tAce of ~ ~A~Ang ~ir~tJ ~, p~f~abXy, ~ I~ the choi~ of ~te/~i~i~ llne ~ kllo. You will be r~ceLving the ~ 50% sample~ details ~f ~oistmre, che~As~xT ~ d~ti~ vLll ~ fo~ to y~ ~ recelv~ ~ ~ ~ 1 N~ 1991. I hop~ to return to Lilongwe next ~onth; should ~ou have any queries, do please let me With kind r~a~s 27 June 1991 BATCo document for Mayo Clinic 20 June 2002