Volumes Down, Prices up in Southern Brazil

Tobacco growers in southern Brazil produced 560.18 million kg in 2021–2022, 10.9 percent less than in the previous growing season, reports Kohltrade, citing figures released by the Brazilian Tobacco Growers Association, Afubra, on Sept. 5.

Production included 512.59 million kg of flue-cured Virginia, 41.79 million kg of burley and 5.79 million kg of Galpao Comum, a native tobacco variety.

The area planted with tobacco in southern Brazil decreased by 8.8 percent year-on-year to 246,590 ha in 2021–2022.

While the leaf volume was down, the average price paid to tobacco growers in southern Brazil grew by 61.5 percent to BRL17.02 ($3.25) per kg this year.

The average price was BRL17.26 per kg in Rio Grande do Sul, BRL17.19 per kg in Santa Catarina and BRL16.41 per kg in Parana.

Industry representatives expect the southern Brazil region to cultivate a slightly larger tobacco area for the 2022–2023 crop.

The production estimate will be completed by the end of October.