Tobacco leaf prices have suffered a gradual but constant decline in the past years. In Malawi prices of Burley have dropped from about US$1.47/kg in 1999 to US$0.99/kg in 2005. In 1998, Zimbabwe farmers were paid about US$2/kg as compared to the 2005 daily average of US$1.14/kg. In Canada prices dropped from CAN$3.567/kg in 1998 to CAN$1.5985/kg in 2005. Some economic theorists might put this drop down to the balanced relationship between global demand and supply: Slumping demand for tobacco leaf in developed countries is levelled out by an increase in developing countries. In the specific case of filler tobaccos, oversupply is making prices plummet.
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