JTI Philippines buys extra tobacco leaf to ease industry supply glut

Insider Spotlight

• JTI Philippines purchased an additional 3.32 million kilograms of tobacco leaf from local farmers.
• The move aims to absorb excess supply following overproduction in Northern Luzon.
• The National Tobacco Administration estimated a surplus of 5 million kilograms of flue-cured Virginia tobacco.
• JTI said it would absorb more than two-thirds of the excess production to help prevent farmer losses.

JTI Philippines has stepped in to purchase an additional 3.32 million kilograms of green weight tobacco leaf from local farmers, helping address a market oversupply that emerged after widespread overproduction during the 2026 growing season.

In a statement on Monday, June 1, 2026, the company said the additional procurement is intended to support farmers in Regions 1 and 2 who faced the prospect of financial losses as demand for Philippine tobacco weakened amid a global oversupply. According to the National Tobacco Administration (NTA), excess production in Ilocos Sur, Ilocos Norte, Abra, and La Union resulted in a surplus of about 5 million kilograms of flue-cured Virginia tobacco.

Why it matters

The development highlights the risks faced by agricultural producers when planting decisions are made without secured market arrangements. The NTA said many farmers planted traditional tobacco varieties expecting demand conditions similar to those seen in 2025. However, global tobacco overproduction in 2026 softened demand for Philippine leaf, leaving a significant volume without buyers.

JTI said its intervention would absorb more than two-thirds of the excess production, helping stabilize incomes for affected growers and reducing the potential economic impact on tobacco-producing communities.

What they’re saying

Alan Jackson, general manager of JTI Philippines said, “We are glad that we were able to help local tobacco farmers this time. It is the combined responsibility of all parties – the Government, industry players and tobacco farmers –to ensure a sustainable tobacco leaf growing industry in the Philippines. In this regard, we are heartened by the commitment of the NTA to avoid another excess production in the future.”

Belinda Sanchez, CEO of the NTA said, “We are grateful to JTI Philippines for being a responsible corporate citizen.”

She added, “The NTA is committed to ensure that a similar situation will not happen in the coming years. We have already started strengthening the Tobacco Contract Growing System among local government units, tobacco farmers, and the private sectors to prevent a recurrence and ensure the production of high-quality tobacco. This will be achieved through a shift from traditional tobacco varieties to early planting of improved Virginia tobacco varieties.”

The planned reforms underscore a broader push to align production with market demand and improve sustainability across the Philippine tobacco sector.

— Edited by Daxim L. Lucas