Brazil Leaf Exports Could Top $3 Billion: SindiTabaco

The value of Brazil’s tobacco exports could surpass $3 billion this season, according to the interstate tobacco industry union SindiTabaco.

During an Oct. 30 meeting of the Sectoral Chamber of the Tobacco Production Chain, stakeholders shared information on the sector’s performance during the most recent growing season and their expectations for the upcoming crop year.

According to the Ministry of Development, Industry, Commerce and Services, Brazil shipped 316 million kg of leaf tobacco between January and September, representing a 14 percent reduction compared to the same period in 2023.

Production volumes were down 16.12 percent, to 508.04 million kg, in 2023–2022 due to excessive rainfall during the growing season. However, the depressed volume boosted the average price by almost 28 percent (see “The Great Scramble,” Tobacco Reporter, May 2024).

In dollar terms, the value of the shipments to date are up 3.44 percent to $2.03 billion. The largest export destinations for Brazilian tobacco were Belgium, China, the United States, Indonesia and Egypt. In 2023, Brazil exported 512 million kg worth $2.73 billion to 107 countries, with the European Union acquiring the bulk (42 percent) of Brazilian leaf exports.

SindiTabaco’s newly appointed president, Valmor Thesing, credited Brazil’s integrated system for the sector’s strong performance. “This is a demonstration that our integrated system is fully active, generating income, jobs and revenue,” he said in a statement.

Some 133,000 families were involved in producing southern Brazil’s 2023–2024 crop—6.62 percent more than during the previous season, according to the Brazilian Tobacco Growers’ Association, Afubra. A similar increase was seen in the planted area, which grew 8.57 percent to 284,184 hectares. “In recent harvests, there has been a more satisfactory average return for producers, which ends up stimulating the expansion of area and producers adopting tobacco cultivation,” explained Afubra President Marcilio Drescher.

This year’s firm prices may boost next year’s harvest. “We are wrapping up cultivation in almost all areas, and we have noticed an increase in area, encouraged by the recent return,” said Drescher. “By mid-November, we should have some forecast regarding the cultivated area and the number of producer families involved in the activity,” he added.