Category: Leaf

  • Zimbabwe: Growers Confident About Targets Despite Drought

    Zimbabwe: Growers Confident About Targets Despite Drought

    Photo: Taco Tuinstra

    Tobacco growers in Zimbabwe are confident that they will achieve the targeted 300 million kg in the 2024–2025 cropping season despite the current dry spell, reports The Zimbabwe Mail.

    While part of the tobacco crop has started showing signs of moisture stress, farmer groups are still hopeful that the projected 2025 yield is achievable.

    “In some areas, the crop might be stressed, but we have hope because the Meteorological Services Department (MSD) is telling us that this was a bit expected because they had already indicated that the season will start in a normal to below-normal situation,” said Zimbabwe Farmers Union chief economist Prince Kuipa.

    In October, the MSD still expected La Nina to develop in the October-November-December period and play a key role in rainfall distribution across much of the country.

    A forecast issued in August this year showed that there were chances of normal to below-normal rains in the mentioned period, with normal to above-normal rainfall in the last half of the 2024–2025 season.

    As of Dec. 6, 2024, farmers had transplanted 66,438 ha compared to 61,380 ha during the same period last year, according to the Tobacco Industry and Marketing Board.

    Zimbabwe’s flue-cured tobacco exports are primarily destined for markets in the Far East, Middle East, Africa, the European Union, the Americas, Europe and Oceania.

    Under its Tobacco Value Chain Transformation Plan, the government aims to significantly boost the value generated by Zimbabwe’s tobacco industry.

  • Philippine Tobacco Farmers to Receive Cash

    Philippine Tobacco Farmers to Receive Cash

    Photo: PMFTC

    The National Tobacco Administration (NTA) of the Philippines is poised to distribute PHP100 million ($1.73 million) to qualified tobacco farmers nationwide, reports GMA News.

    The organization has identified 16,666 tobacco farmers as recipients of the cash assistance amounting to PHP6,000 each, which will be distributed on or before Dec. 15, 2024.

    The funds are intended to cover tobacco farmer-recipients’ production for cropping year 2024-2025, which began in September 2024 and will conclude by June 2025.

    The NTA said the recipients were identified by the agency’s branch offices based on the guidelines set and approved by the NTA governing board.

    Among the recipients are 9,055 contract growers and 7,611 are non-contract growers.

    The NTA said that beneficiaries of the cash assistance must be registered tobacco farmers with the agency and are personally tilling a tobacco farm “capable of providing adequate labor to attend to all activities in quality tobacco production, able to provide basic farm tools and equipment, such as plow, harrow, sprayer, work animal, irrigation pump, and curing bar/air curing shed, and should have adequate sources of good quality irrigation water and desirable for tobacco production.”

  • Next Brazilian Crop Could Touch 700 Million Kg

    Next Brazilian Crop Could Touch 700 Million Kg

    Photo: Taco Tuinstra

    The South Brazilian tobacco crop for 2024/2025 will cover 309,982 hectares, marking a 9.08 percent increase from the previous crop, reports Kohltrade, citing the Brazilian tobacco growers’ association, Afubra.

    Paraná state recorded the largest growth at 13.63 percent, with 83,981 hectares planted. Santa Catarina follows with 11.78 percent, with 94,212 hectares planted and in Rio Grande do Sul, 131,789 hectares were planted, reflecting a 4.6 percent rise.

    More than 138,020 families will be involved in in this year’s tobacco crop, 3.57 more than in the previous season.

    “We are emerging from two very profitable harvests for many tobacco growers, leading to high profitability,” said Afubra President Marcílio Drescher. “As a result, more land is being dedicated to tobacco cultivation, with families returning to this crop. However, these developments are concerning. An increase in cultivated area during a period of stable weather could lead to higher production levels, which may negatively impact producers’ income.”

    In terms of production volume, the initial estimate indicates a boost of 37.08 percent, leading to a total production of 696,435 tons in southern Brazil. This includes 630,539 tons of Virginia tobacco (36.52 percent), 54,624 tons of Burley tobacco (44.07 percent), and 11,272 tons of Common tobacco (36.45 percent).

    Representatives from grower organizations and tobacco companies are currently calculating the production costs for the 2024/2025 harvest. Price negotiations are expected to commence once this assessment is completed.

  • ITGA Celebrates 40 Years of Representing Growers

    ITGA Celebrates 40 Years of Representing Growers

    Photo: PMFTC

    The International Tobacco Growers’ Association (ITGA) marked its 40th anniversary this week.

    Established in 1984 by growers’ representatives from Argentina, Brazil, Canada, Malawi, the U.S. and Zimbabwe, the ITGA provides a unified voice to tobacco growers worldwide and offers a platform to represent their interests.

    During the 1990s, ITGA expanded its membership to include many more countries from Latin America, Africa, Asia and Europe, cementing its presence as a global representative of tobacco growers.

    ITGA played an active role in international discussions about the tobacco industry, emphasizing the importance of balancing regulatory needs with the livelihood of farmers.

    As environmental and economic pressures increased, ITGA launched initiatives promoting sustainable farming practices to help growers adapt to changing conditions and market demands.

    The association actively engaged with governments and organizations, advocating for fair treatment of tobacco growers amid global anti-tobacco campaigns such as the World Health Organization Framework Convention on Tobacco Control that since its entry into force has dramatically influenced the tobacco regulation environment.

    Ever since its foundation, ITGA has served as a unique platform to bring supply chain partners together at regional and global level. Today, ITGA gatherings are fundamental in their role to bring farmers, experts, and other stakeholders to discuss pressing issues, share knowledge, and explore innovations in sustainable agriculture.

    Recognizing shifts in global demand, ITGA began encouraging research and programs to support crop diversification that could potentially benefit farmers in their search for alternative income sources.In addition, ITGA solidified its partnerships with research institutions and NGOs to provide education on sustainable agricultural methods and diversification.

    The association continues to stand as a key representative in policy dialogues, advocating for a balanced approach that considers both public health goals and the economic well-being of growers.

    As ITGA celebrates its 40-year milestone, the organization remains committed to championing tobacco growers’ needs, exploring sustainable solutions, and promoting economic security for farming communities worldwide.

    “I encourage ITGA Members to act as a unified body and carry on the legacy of these 40 years of history that were fundamental to maintain our independent global association raising tobacco farmers voices,” said ITGA President José Javier Aranda.

  • Universal Reports Preliminary Results

    Universal Reports Preliminary Results

    Photo: Taco Tuinstra

    Universal Corp. reported preliminary unaudited financial results for the second quarter of fiscal year 2025. Sales and other operating revenue were $710.8 million, operating income was $70.7 million, and net income attributable to Universal Corp. was $27.6 million. Tobacco operations sales and other operating revenues amounted to $630.2 million while tobacco operations operating income totaled $79.3 million.

    “The Universal team delivered another quarter of solid results, driven by strong customer demand from our tobacco operations segment and larger, higher-quality and better-yielding crops in Africa. We believe our tobacco operations segment will continue its strong performance in the second half of our fiscal year,” said Universal Corp. chairman, President and CEO Preston D. Wigner in a statement.

    While presenting preliminary figures, Universal Corp. delayed the release of its second quarter 2025 earnings due to an internal investigation regarding certain allegations related to embezzlement by a former senior finance employee at the company’s Mozambique subsidiary, Mozambique Leaf Tobacco.

    The company has identified approximately $7 million of unauthorized payments during fiscal years 2022 through 2025. Universal Corp. said it intends to pursue sources of recovery, including company-maintained insurance. As of Nov. 12, the firm does not believe the matter under investigation will have a material negative impact on its financial results for fiscal year 2025.

    “Integrity is a core value of ours and a key to everything we do at Universal,” said Wigner. “We are committed to ensuring that this matter is handled appropriately, and we are working to complete this investigation as soon as practicable.”

  • Pyxus International Posts ‘Solid’ Quarter

    Pyxus International Posts ‘Solid’ Quarter

    Photo: AOI

    Pyxus International announced results for its fiscal quarter ended Sept. 30, 2024.

    “We are pleased to report a solid first half, establishing the necessary foundation to achieve strong full-year results,” said Pyxus President and CEO Pieter Sikkel in a statement.

    The company reported second-quarter sales and other operating revenues of $566.3 million compared to $624.3 million for the prior fiscal year’s second quarter. The change versus the prior year primarily reflects a shift in timing of certain shipments, a portion of which were accelerated into the company’s first quarter of the current fiscal year, with shipments being delayed out of the second quarter being expected to benefit second-half results.

    The 9.3 percent reduction in second-quarter revenue compared to the prior-year second quarter was the result of a volume decline of 23 percent, partially offset by a 14.5 percent improvement from pricing driven by cost increases.

    The company’s reported gross profit was $75.4 million in the second quarter compared to $88.7 million in the second quarter of fiscal 2024. This reduction was associated with the shipment of inventory purchased during El Nino market conditions in South America.

  • Brazil Leaf Exports Could Top $3 Billion: SindiTabaco

    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.

  • Zimbabwe Urged to Mitigate Farmers’ Losses

    Zimbabwe Urged to Mitigate Farmers’ Losses

    Photo: Taco Tuinstra

    The Tobacco Farmers Union Trust (TFUT) is calling for the localization of tobacco beneficiation to help mitigate losses caused by adverse weather conditions and soaring production costs in Zimbabwe’s tobacco sector.

    The appeal follows a 20 percent drop in production, with farmers yielding 231 million kg of tobacco during the 2023–2024 farming season, largely attributed to a drought induced by the El Nino weather phenomenon.

    Tobacco beneficiation refers to the process of adding value to raw tobacco, enhancing its quality, usability and application beyond its conventional uses. Through its Tobacco Value Chain Transformation Plan, the Zimbabwean government aims to elevate the economic value of tobacco, ultimately benefiting both farmers and the broader economy by creating higher value products and generating jobs within the supply chain.

    “Tobacco margins continue to dwindle due to low yields associated with low rainfall patterns and skyrocketing input costs. High earnings often reported in the public domain are mainly benefiting some merchants, contractors and related value chain actors,” said Edward Dune, deputy president of the TFUT, in an interview with NewsDay Business. According to Dune, the localization of tobacco product beneficiation is a key objective of a forthcoming tobacco transformation plan.

  • Macedonian Growers Demand Higher Prices

    Macedonian Growers Demand Higher Prices

    Photo: Taco Tuinstra

    Tobacco growers in North Macedonia are meeting Minister of Agriculture Cvetan Tripunoski today to discuss leaf prices, reports Sloboden Pecat. A meeting with buyers is scheduled for Nov. 4.

    “We are not satisfied with the current price, which is at last year’s level, i.e., MKD375 [$6.58] for the first, MKD300 for the second and MKD260 for the third-class purchased tobacco,” said Kiro Risteski, president of the Union of Tobacco Growers Associations of Macedonia.

    “On Monday, we have a meeting with the Minister of Agriculture, Cvetan Tripunoski. We think that we will find good cooperation, and on Nov. 4, we will have a meeting with the buyers. Our goal is to achieve a higher price for tobacco, to maintain production, to keep young people working in tobacco, because according to statistics, the average age of tobacco producers is over 50 years old,” said Risteski.

    Tobacco growers in North Macedonia expect to bring about 17 million kg of good-quality tobacco to market this season. Buyers, however, had signed contracts with farmers for 26 million kg.

    The market opens following a mixed growing season. Too much moisture at the start of the production process delayed planting. Subsequent drought boosted quality but reduced yield. Rains toward the end of the production season again boosted volume. Growers planted more than 13,000 hectares this year.

    This year, 10 licensed companies will be buying tobacco.

  • TIMB Joins GlobalG.A.P.

    TIMB Joins GlobalG.A.P.

    Photo: Taco Tuinstra

    Zimbabwe’s Tobacco Industry and Marketing Board (TIMB) has joined GLOBALG.A.P. to help tobacco farmers diversify their operations, reports The Sunday Mail. As part of the government’s Tobacco Value Chain Transformation Plan, the agency aims to ensure that 30 percent of tobacco farmers’ income comes from alternative crops by 2025.

    GLOBALG.A.P. is an international membership network designed to promote sustainable and safe agricultural practices across the food supply chain.

    Members include producers, retailers, food service companies and other stakeholders who align with the organization’s vision of responsible farming. The community offers opportunities for members to collaborate on setting and refining standards for food safety, sustainability and animal welfare.

    Through the GLOBALG.A.P. Academy, the TIMB has trained certified trainers to build farmers’ capacity in meeting international market standards.

    Additionally, the TIMB now offers GLOBALG.A.P consultancy services to exporting farmers. The agency is also working to develop markets for alternative crops such as sweet potatoes and butternut.