Massive job losses loom as Alliance One International closes operations in Migori County as emand for tovacco dwindles
Global raw tobacco dealer Alliance One International Inc. is scaling down down its operations in Kenya due to a drop in demand for locally-produced tobacco.
Alliance One Kenya has consequently terminated contracts for tobacco farmers in various parts of the country who have been supplying it with tobacco and will cease its field operations from 1st July 2015. This will lead to job losses in the areas affected.
Alliance One Tobacco (Kenya) Ltd is a subsidiary of Alliance One International, with its corporate head office in Morrisville, North Carolina, USA. The company has had a presence in the country since 1990. Its core operations involve sponsoring farmers to produce tobacco mainly in Migori County, processing and exporting to the international market.
Alliance One Tobacco Kenya Managing Director Francis Chege said the firm will have “minimal presence” at its Thika processing base with a limited number of staff.
“Alliance One is proud to have been a part of the tobacco industry in Kenya for the past 25 years, but unfortunately customer demand for the Kenyan supply has declined and the company has been forced to realign its operations to changing market conditions,” said Mr Chege.
“Through the implementation of Good Agricultural Practices and our Sustainability programmes, we have assisted our growers to become more efficient, minimize their impact on the environment and increase income for their families.”
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