Category: Leaf

Brazil: Tobacco Harvest ‘Inaugurated’

SindiTabaco President Iro Schunke honors tobacco growers during a ceremony in Rio Grande do Sul celebrating the sector’s contributions. (Photo: SindiTabaco)
Brazil leaf tobacco sector “inaugurated” the tobacco harvest on Oct. 28 in the Faxinal de Dentro district of Rio Grande do Sul. Promoted by the Secretariat of Agriculture, Livestock and Rural Development, the festivity is an official event of the state government and relies on support from the Interstate Tobacco Industry Union (SindiTabaco), Tobacco Growers’ Association of Brazil (Afubra) and the municipal administration of Vale do Sol.
Speaking during the ceremony, SindiTabaco President Iro Schunke said the inauguration of the harvest, held on Tobacco Growers’ Day, is an excellent opportunity to acknowledge tobacco farmers’ social and economic contributions.
“Approximately 10 percent of all Rio Grande do Sul exports last year consisted of tobacco shipments,” he said in a statement. “Several mayors report that, after the arrival of tobacco in their municipalities, things changed for the better, seeing that there was an increase in tax collection for the benefit of all citizens.”
November 1, 2021
A Greene Niche

Despite its considerable profit margin, U.S. organic tobacco is likely to remain a marginal crop.
By Stefanie Rossel
Across all areas of life, sustainability has become an ever more important issue for consumers. Global sales of organic food, for example, have increased between nearly $18 billion in 2000 to $106 billion in 2019, according to Statista. Cigarettes made of organically grown tobacco, however, continue to remain a rarity. Many smokers are likely to be aware now that the combustion of tobacco leaves, a process that releases more than 7,000 chemical substances—among them more than 70 linked to cancer—makes cigarette consumption a hazardous habit regardless of whether the leaves have been cultivated in a certified organic way or conventionally. Thus, the unique selling proposition of organic cigarettes is not their comparative health risk but their lower impact on the environment.
Only a handful of tobacco companies offer organic smoking products, with Santa Fe Natural Tobacco Company being the most prominent player. According to Nielsen, the manufacturer’s American Spirit brand had a share of around 2 percent of the U.S. market in August 2021.
William Snell
“Sustainability is the buzz with most companies today, including tobacco companies, but, at this point, I just don’t see organic tobacco capturing much of the market,” says William Snell, professor of agricultural economics at the University of Kentucky. “Keep in mind, even with the massive escalation of organics in our food markets, they still only comprise around 6 percent of today’s [U.S.] food market.”
That organic tobacco will likely remain a niche is also reflected by the amount of U.S. farmland dedicated to that crop.
“Demand for organic tobacco seems to have peaked, if we are basing it off of current acreage in the U.S. Data are limited, but we know that the bulk of organic flue-cured tobacco is produced in North Carolina, and our state’s organic-certified tobacco acreage has not increased since around 2017,” says David Suchoff, alternative crops Extension specialist and assistant professor at North Carolina State University. “Compared to conventional tobacco, certified organic tobacco still represents a very small percentage of the total crop produced. However, the general increase in North Carolina’s certified organic acreage can be attributed to tobacco as it tends to result in higher profit margins than many other organic field crops, making the transition from conventional to organic easier on the farmer.”

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Decreasing Production
According to the U.S. Department of Agriculture (USDA) National Agriculture Statistics Services, 181 farms cultivated 13.08 million pounds of organic tobacco in 2019, representing a value of $39.13 million. This compares to 467.96 million pounds of conventional leaf. With 18.62 million pounds, organic tobacco production was higher in 2018 but so was the conventional leaf crop, which stood at 628.72 million pounds in 2016. Of the 2019 U.S. organic tobacco crop, the majority was flue-cured Virginia. In 2019, 6.04 million pounds came from North Carolina and 2.28 million pounds from Virginia. Kentucky grew 1.14 million pounds of organic burley that year.
In the first part of the last decade, Kentucky witnessed a rapid rise in interest in organic burley, followed by a steep drop, according to Robert C. Pearce, Extension professor at the College of Agriculture, Food and Environment at the University of Kentucky. “I assume [that happened] because they built an inventory of organic leaf that was not used as quickly as anticipated,” he says. “I only know of a handful of growers in Kentucky still cultivating organic burley. I don’t anticipate much increasing demand for organic burley. Burley tobacco is used in smokable products to absorb flavoring components. Since many natural/organic tobacco products do not utilize flavorings, burley is not needed in large amounts.”
In North Carolina, production of organic leaf has almost halved from 11.91 million pounds in 2016. The future of the segment is difficult to predict, says Matthew Vann, associate professor and Extension tobacco agronomist at North Carolina State University. “Obviously, we have the capacity to produce more organic leaf, but this is all dictated by the market. We do not foresee the organic leaf production to drop considerably, but we also do not expect demand to skyrocket. We do see opportunities for commercial farmers with serious interest in producing this style of tobacco, and we also want to make growers aware that organic production must be taken seriously due to the stringent regulations in place by the USDA National Organic Program and the standards outlined by leaf purchasers.”

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Greater Efforts, Higher Profits
Matthew Vann
For farmers, the higher profits associated with organic tobacco tend to be the major motivator for cultivating such crops. “Many of our farmers have organic certified land and conventional land based on the crops they grow and the economics of producing one crop organically versus the other,” says Vann. Pearce observes that for some farmers, it is a lifestyle choice: “There are some that have tried to do both, but those who are most successful are full-time organic producers for their entire operation. In order to be successful, a grower must have sufficient land area in organic rotation to be able to rotate their crops. Growers must understand that organic production is a system-wide commitment.”
In any case, going organic is one way to keep charging premium prices. While cultivating organically costs more and yields a slightly less marketable product, farmers are able to make up for more than the difference—their organic tobacco will command double the price of the conventionally grown, chemical-laden variety.
Extension experts stress that organic is not to be conflated with sustainability. “Just because a farmer is organic does not necessarily mean that their system is sustainable, and, conversely, just because a farmer uses conventional practices does not imply that their system is not sustainable,” Suchoff points out. “We want to make that distinction, as we are working very hard to ensure the sustainability of both production systems. While organic growers can improve the health of soils and local environments through the practices they employ, the same can be said for conventional farmers, thus we do not make any blanket statements about organic being better for the environment.”
To become a certified organic tobacco farmer, the farm or business needs to adopt organic practices and apply to a USDA-accredited certifying agent. An inspector conducts an on-site inspection of the applicant’s operation; the certifying agent reviews the application and the inspector’s report to determine if the applicant complies with the USDA organic regulations. If the application meets the required standards, the farmer will receive an organic certificate. To maintain certification, the farm or business must submit to an annual review and inspection. Certification costs may range from a few hundred to several thousand dollars.

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More Challenges
When committing themselves to growing organic tobacco, farmers restrict themselves in the use of fertilizers, herbicides and pesticides, which can be a challenge for the cultivation of a crop as complex and susceptible to pests as tobacco. “Typical pests are a problem for organic growers—weeds, insects, diseases, etc.,” says Pearce. “Typically, organic growers wind up substituting extra labor and tillage for herbicide to control weeds and use cultural practices to assist with insect and disease control. There are two areas that we have found to be particularly challenging for organic tobacco production. One is growing the transplants in a float system. Getting the appropriate balance of nutrients with only water-soluble organic fertilizers has been difficult. The other challenge has been controlling suckers after topping. There is one organically approved fatty alcohol for sucker control, but its approval has had several challenges along the way.”
In managing common pests, farmers can choose from a number of Organic Materials Review Institute (OMRI)-certified products. “One of the biggest challenges organic tobacco farmers face is weed management,” says Suchoff. “While there are a few OMRI-certified herbicides, these products are very expensive, require multiple applications, are generally not very efficacious, would require precision application to prevent injury to tobacco and aren’t approved for use by buyers of organic leaf. Consequently, organic tobacco farmers are left with only routine field cultivation and hand removal to manage weeds. Producers sometimes struggle with disease management. We are fortunate that most approved varieties have good or excellent resistance to black shank and/or Granville wilt, but there’s no host resistance to target spot or tomato spotted wilt virus. Management for these diseases (and a few others) relies heavily upon cultural practices, such as transplanting date, avoiding areas of a field with a known history of certain diseases and even harvest timing, for example. Another issue organic tobacco farmers face is determining which crops should be placed in rotation with tobacco.”
The goal of his university’s Extension program, he says, is to conduct applied field research to answer their farmers’ questions and address any production issues they have in an organic system. “For example, we continue to look at organic crops such as sweet potato, hemp, sunflowers and other grains that may fit within an organic tobacco rotation. Additionally, we have conducted work looking into alternative weed management strategies that promote soil health. From this research, we develop grower recommendations to share with county extension agents, farmers and the industry as a whole through field day events, publications and online posts. Ultimately, our Extension programs are designed to address real-world problems through basic and applied research.”
The University of Kentucky’s Extension program supports growers of organic tobacco mostly on a case-by-case basis, explains Pearce. “We have so few organic growers that most just come to us with questions. During the organic ‘boom’ of a few years ago, we did several trials on float system fertilization to help answer grower questions.”
Although the future of the segment remains unclear, Vann believes that the emergence
Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.

November 1, 2021
India Slashes Penalty for Overproduction

Photo: Tobacco Reporter archive
India’s Ministry of Commerce and Industry has cut the penalty on “excess” tobacco produced during the 2021-2022 cropping season by 50 percent to help growers compete on the world market, reports The Hindu.
To prevent overproduction, Indian regulators set a crop size target prior to each production season. Growers who exceed the authorized volume must pay a penalty.
Following the penalty reduction, authorized growers must pay INR1 ($0.01) per kg and 5 percent of the value of their excess production during the 2021-22 cropping season. However, unregistered growers have to pay the old rates.
Tobacco growers welcomed the decision. “We can confidently raise the crop without fearing the penalty to achieve the economies of scale,” said B. Ramaanjaneyulu.
The Tobacco Board authorized production on 27,818 hectares in the Southern Light Soils region and 22,014 hectares in the Southern Black Soils region of Andhra Pradesh.
October 29, 2021
Farmers Rally Against Contracting Plan

Photo: Tobacco Reporter archive
A plan to introduce tobacco contract farming has run into fierce opposition among leaf growers in India, reports The Times of India. During a massive gathering in Guntur on the occasion World Tobacco Growers’ Day, farmers demanded that the central government abandon its proposals, saying that contracting would put growers at risk of exploitation.
“It’s going to have a disastrous effect on the livelihood of millions of growers,” predicted Gadde Seshagiri Rao, former vice president of the Tobacco Board.
Virginia tobacco farmers association president Karatam Venkata said the existing auction system works well because it provides growers with assured payment though the Tobacco Board while contract farming results in delayed payments. In contract farming, he added, farmers’ livelihoods would be at the mercy of traders.
Growers also praised the fairness and transparency of the auction system, which they said provided greater market stability than contracting. The tobacco farmers were particularly incensed that the government had made its proposal without consulting them.
Contract farming has been gaining momentum globally at the expense of auction sales as leaf traders faced with ever-stricter compliance requirements seek greater control over the production process.
October 29, 2021
Minister: Tobacco Will Remain Cash Crop

Workers at a Malawi leaf processing facility prepare to unload a fresh shipment of tobacco.
(Photo: Taco Tuinstra)
Tobacco will remain Malawi’s cash crop for the foreseeable future, according to Minister of Agriculture Lobin Lowe. Speaking after touring Japan Tobacco International Leaf Malawi Factory, Lowe urged farmers continue their commitment to the crop, according to Malawi24.
Citing JTI’s recent $1 million investment in maintaining its Malawi factory, Low said it is pleasing that companies consider Malawi as a leading processing country. The investment, he said, is evidence that tobacco has a bright future in Malawi.
“If we talk of other crops, we are talking of complementing tobacco and not getting away from tobacco. This alone shows that we are still relying on tobacco in the short, medium and long term,” said Lowe.
As global demand for cigarettes has stagnated, Malawi growers have increasingly been eying alternative crops. In May, Malawi’s president, Lazarus Chakwera, urged a switch to high-growth crops like cannabis, stating that tobacco, the country’s leading foreign exchange earner, was in terminal decline.
While expressing confidence in tobacco, Lowe lamented farmers’ low earnings. Growers, he said, retain little money after repaying the inputs they got from tobacco companies. He also complained that the ministry did not get enough forex from tobacco sales.
Low urged discussions between buyers, processors and the regulator to make sure that farmers are attracted to tobacco.
JTI Managing Director John Gauna called on government to remove non-value costs in order to make Malawi’s processing facilities financially appealing.
Gauna said that a number of tobacco processing factories have closed in the neighboring countries, and this has created an opportunity for Malawi to position itself as a competitive alternative.
But taxes and levies in commodity processing are making Malawi unattractive, according to Gauna.
“We boast capacity to process up to 240 million kilograms of tobacco leaf here in Malawi. But at the moment we aren’t achieving anywhere near this,” said Gauna.
The JTI factory can process up to 50 million kg of leaf but is currently processing around 40 million kg, up from 28 million last year.
October 26, 2021
Cuba Starts Planting for 2021-2022 Season

Photo: Habanos
Cuba will kick off its 2021–2022 tobacco growing season by planting of 25,000 hectares this Sunday, reports Market Research Telecast, citing the state company Tabacuba.
Some 13,800 producers are expected to harvest 27 million kg of tobacco this season.
Farmers in the country’s leading tobacco growing area, Pinar del Rio, will plant 16,373 hectares, including 760 hectares covered by cloth for the production of Cuba’s famous Havana cigars.
In addition, growers in Pinar del Rio will plant 510 hectares of flue-cured Virginia leaf for a cigarette factory in the neighboring Artemisa province.
Cuba’s tobacco sector has been struggling with a shortage of inputs due to the Covid-19 pandemic and the continuing U.S. trade embargo.
October 11, 2021
Cambodia Tobacco Exports Down

Photo: camvalleys
Cambodia’s tobacco exports dropped more than 50 percent in the first nine months of 2021 from the comparable period last year, reports The Khmer Times, citing data from the country’s ministry of agriculture.
From January to September, Cambodia exported 2,514 tons of tobacco to eight countries, including Vietnam, Belgium, Hungary, Bosnia and Herzegovina, China, Indonesia, Singapore and Germany.
The biggest destinations were Vietnam (2,432 tons), Belgium (59.42 tons). Hungary (19.80 tons) and Bosnia and Herzegovina (1.9 tons).
Last year, Cambodia exported 5,820 tons of dried tobacco worth a total of $17.4 million.
Cambodia’s tobacco is grown along the Mekong Delta in areas such as Tboung Khmum and Kampong.
October 8, 2021
Zimbabwe OKs Tobacco Transformation Plan

Photo: Taco Tuinstra
Zimbabwe’s Cabinet has approved a plan to generate more value from tobacco by localizing financing, increasing production and exporting cigarettes, among other measures, reports The Herald.
“The initiatives should contribute significantly to gross domestic product growth, foreign currency generation and employment creation, thereby raising household incomes,” said Monica Mutsvangwa, minister of information, publicity and broadcasting services.
The plan calls for local funding of tobacco production to complement external funders, raising tobacco production to 300 million kg by 2025, and diversifying into crops such as medicinal cannabis. By 2025, farmers should derive 25 percent of their incomes from alternative crops, according to the plan.
Mutsvangwa said the immediate objective of the plan was to increase tobacco production and productivity through increasing the yield per unit, increasing the area under crop and minimizing losses.
September 8, 2021
Ample Tobacco Seed in Zimbabwe
Dahlia Garwe
Zimbabwe’s Tobacco Research Board (TRB) has enough tobacco seed for the next five seasons and can supply some varieties for up to 10 years, reports The Herald. This requirement will assist the government’s program of raising tobacco production to 300 million kg annually by 2025 through the Tobacco Value Chain Transformation Strategy.
“We have enough seed to cater for a minimum of five years after ripening,” said TRB Chief Executive Dahlia Garwe. “The seed that is aged is better than the fresh one. Our seed is stored under very specific conditions and can last up to 10 years or more. We have enough varieties in stock, such as the most popular KRK26, KRK66 and the new variety KRK76, which is already overtaking the popular ones. Even if we don’t produce seed for two years, we will not experience shortages. Farmers should not worry over deterioration. After ripening, testing facilities are in place.”
August 27, 2021
KT&G Helps Alleviate Farm Labor Shortage

Photo: KT&G
KT&G deployed employee volunteers to help leaf tobacco farmers who are struggling due to a shortage of workers in Asan City, South Chungcheong Province.
South Korea’s leaf tobacco is harvested in midsummer, from July to August. It is difficult to mechanize, and most of the harvest is performed manually, requiring a lot of labor. Korean farms have been experiencing difficulties in securing a sufficient workforce due to the ongoing Covid-19 pandemic and the decline of the rural population.
In response, KT&G has been deploying employee volunteers to leaf tobacco farms every year since 2007. This year, employees of the Raw Materials HQ and Gimcheon Plant visited a leaf tobacco farm in Dunpo-myeon, Asan City, and helped harvest about 5,700 kg of leaf tobacco from 16,000 square meters of cultivated land.
KT&G provides help not only in leaf tobacco harvesting in the summer but also in transplantation in the spring.
The company has also continued to provide economic support for the promotion of the welfare of leaf tobacco farmers. In May, the company donated KRW400 million to support health checks for farmers and to provide scholarships for the children of farmers. From 2013 to the present, the accumulated amount of support amounted to KRW2.85 billion, benefiting 7,957 farmers to date.
“I hope that this employee harvesting service has been of some help to farmers who are struggling due to the Covid-19 pandemic and heat waves,” a KT&G official said in a statement. “We will continue to provide practical support to improve the quality of life of farmers, and we will strive to continue to grow together with them.”
August 26, 2021