Tobacco exports could reach US$3 billion in 2024

Information was shared during the 74th Meeting of the Tobacco Production Chain Sector Chamber

30.10.2024 | 12:06 (UTC -3)
Daniella Turano

The last regular meeting of 2024 of the Tobacco Production Chain Sector Chamber brought together representatives of sector entities on the morning of this Wednesday, October 30. Organized by the Ministry of Agriculture (Mapa), the meeting, in a hybrid format, addressed several topics of interest to the production chain.

Romeu Schneider, president of the Chamber, welcomed the new president of the Interstate Tobacco Industry Union (SindiTabaco), Valmor Thesing, who updated the group on the new board that will be sworn in on November 08, in Santa Cruz do Sul (RS), for the 2024-2027 term.

The president of SindiTabaco, Valmor Thesing, also presented information about exports. “We should have exports above the average of the last few years in dollars and, if the trend is confirmed, we could surpass the US$ 3 billion mark. This is proof that our integrated system is fully active, generating income, jobs and foreign exchange,” he said, bringing up the projection from the consulting firm Deloitte, which indicates a drop in volume of between -15% and -10,1% and an increase in the value of foreign sales of between 20,1% and 25%.

To date, according to the Ministry of Development, Industry, Trade and Services (MDIC/ComexStat), 316 thousand tons were shipped between January and September, which represents a reduction of -14% compared to the same period in 2023. In dollars, US$ 2,03 billion were shipped, a positive variation of 3,44% compared to the previous year. Belgium, China, the United States, Indonesia and Egypt are among the largest importers to date. In 2023, Brazil exported 512 thousand tons and US$ 2,729 billion to 107 importing countries, with emphasis on the European Union (42%).

Good price paid to producers stimulates growth in planted area

The president of the Brazilian Tobacco Growers Association (Afubra), Marcílio Drescher, shared the final results of the 2023/24 harvest and the outlook for the 2024/25 harvest. According to Afubra, tobacco production in the 2023/24 harvest involved 133 families in the Southern Region of Brazil, an increase of 6,62% compared to the 2023/22 harvest. A similar increase was also observed in the planted area: 284.184 thousand hectares, an increase of 8,57%. “In the last harvests, we had a more satisfactory average remuneration for producers, which ends up stimulating the increase in area and producers who adhere to cultivation”, explained Drescher.

Excessive rainfall during the period was the main cause of the reduction in the volume of the harvest, which resulted in a final output of 508.041 tons, a decrease of -16,12% compared to the 2023/2022 harvest. “Also due to this reduction, the average price of tobacco increased by almost 28%”, commented the producer representative.

“We are already finishing cultivation in almost all areas and we have noticed an increase in the area, stimulated by the last remuneration. By mid-November we should have some forecast about the cultivated area and the number of producer families involved in the activity”, said Drescher about the prospects for the 2024/2025 harvest, which has already harvested 8,5% of the tobacco.

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