Tobacco leads growth in Brazilian agriculture in GDP

Data released by the Brazilian Institute of Geography and Statistics (IBGE) at the end of May show that Brazil's Gross Domestic Product (GDP) grew 1,4% compared to the previous quarter (last three months of 2024). This increase, according to the Ministry of Finance, was mainly driven by the agricultural sector, which grew 12,2% in the period.

Among the products that registered the greatest growth in agriculture in the first quarter of 2025, tobacco ranks first, with an increase of 25,2%, according to the Systematic Survey of Agricultural Production (LSPA). Next are soybeans (with an increase of 13,3%), rice (12%) and corn (11,8%).

Currently, agribusiness accounts for around 6% of Brazil's GDP when only production is considered. However, when including associated activities such as industry, commerce and services, this percentage rises to 23%, according to estimates from the Brazilian Confederation of Agriculture and Livestock (CNA).

The good performance of tobacco is related to the organization and productive efficiency of the sector. “Brazil has been the global leader in tobacco exports for more than three decades and is the second largest producer in the world, behind only China,” says Valmor Thesing, president of SindiTabaco. The tobacco production chain generates jobs and income for 626 people in rural areas and exports to more than 100 countries.

The competitiveness of Brazilian tobacco in the global market is a direct result of the Integrated Tobacco Production System (SIPT), which promotes joint action between industries and producers. The results range from ensuring the quality and integrity of the product to the social and environmental sustainability of production. “SIPT allows for crop planning and offers technical and financial assistance to farmers, ensuring regular supply and quality of the raw material,” explains Thesing.

Exports 

The expectation is to close the year 2025 with more than US$ 3 billion in foreign currency, according to a study by the consultancy Deloitte, which predicts growth of between 10% and 15% in exports compared to 2024. By the end of May this year, Brazilian tobacco shipments have already accumulated US$ 1,1 billion in business.