Tag: Brazil

  • Brazil Urged to Embrace Harm Reduction

    Brazil Urged to Embrace Harm Reduction

    Photo: Taco Tuinstra

    Brazil could prevent almost 1.4 million premature deaths—equivalent to the population of Porto Alegre—by implementing Sweden’s tobacco harm reduction (THR) strategy, according to a new report to be presented in Brasilia by Smoke Free Sweden today.

    Currently, Brazil has a smoking rate of 13.4 percent, well above the World Health Organization’s official “smoke-free” threshold of 5 percent. This means almost 16,000 Brazilians die each month from preventable diseases.

    Sweden, by contrast, is on track to become officially “smoke-free,” with smoking rates only just above 5 percent.

    This translates into the lowest cancer rates in Europe and reduced mortality from smoking. According to the report’s authors, a significant part of this success story is Sweden’s measured approach to reducing the harm associated with smoking through the use of reduced-risk alternative products such as vaping and nicotine pouches.

    “Although smoking continues to be the leading preventable cause of premature death worldwide, conventional methods in tobacco control have reached a standstill,” said principal author Derek Yach in a statement.

    “Policymakers in Brazil need to acknowledge the pivotal role of tobacco harm reduction products, which are already being utilized by 150 million individuals worldwide, in addressing this urgent crisis.”

    “Tobacco control alone is not enough when it comes to combating high smoking levels,” said Delon Human, leader of the Smoke Free Sweden movement and a key contributor to the report.

    “It must be complemented by a comprehensive set of harm reduction measures. This includes the accessibility, acceptability, and affordability of less harmful alternatives like vaping and nicotine pouches.

    “Public health entities in Brazil should seize the opportunity for global replication of Sweden’s successful approach. Together, we can work towards a smoke free world and ensure the well-being of future generations.”

    Brazil’s Federal Senate is currently considering a bill on the regulation of electronic cigarettes, which have been banned in the country for more than a decade.

  • ITGA Debates COP at Americas Meeting

    ITGA Debates COP at Americas Meeting

    Photo: ITGA

    Representatives of the leaf tobacco industry discussed global supply and demand, the economic significance of tobacco, and the repercussions of 10th Conference of the Parties (COP10) to the Framework Convention on Tobacco Control (FCTC), among other topics, during the International Tobacco Growers Association’s (ITGA) 2024 Americas Regional Meeting on March 18 in Santa Cruz do Sul, Rio Grande do Sul, Brazil.

    Participants in the gathering were dismayed by the attitude of the Brazilian government delegation during COP10. Brazil has been the world’s leading tobacco exporter since 1993. In 2023, the country shipped 512,000 tons of tobacco, earning $2.73 billion, according to the Ministry of Development, Industry and Trade. Yet despite the economic significance of tobacco, Brazil’s COP10 representatives pushed hard for more restrictions on the sector during the Panama meeting.

    “I ask the government not to ignore this important production chain, considering that Brazil is an example to the world in terms of good social, environmental and production practices,” said ITGA’s President José Javier Aranda in Santa Cruz do Sul.

    Marcílio Drescher, president the Brazilian tobacco growers’ association Afubra, urged tobacco stakeholders to unite in the face of opposition. “There is no such thing as an isolated tobacco sector and the union between producers and companies is very important,” he insisted.  

    Helena Hermany, mayor of Santa Cruz do Sul, observed that the narrative that reaches government representatives in the capital, Brasilia, is different from reality. “The NGOs totally distort what tobacco means for the growers, the municipalities and the environment,” she said.

    ITGA market analysts Ivan Genov described the prevailing tobacco trends in key markets. One of the highlights, he noted, is that Tanzania aims to overtake Zimbabwe to become Africa’s largest producer. He also called attention to a small reduction in cigarette production and the simultaneous increase in demand for next-generation devices, along with the discussions around the disposal of such devices.

    Antônio da Luz, chief economist of the Farsul System, highlighted the importance of agriculture. “Fifty years ago, we had 67 percent of people living in the countryside to 33 percent in the city,” he said. “Since 2010, the urban population has outnumbered the rural population and the estimate is that, by 2050, we will have 70 percent of people living in cities and only 30 percent producing food in rural areas.” In such an environment, Da Luz noted, increasing agricultural productivity will be of key importance.

    Iro Schünke, the president of the Interstate Tobacco Industry Union (SindiTabaco), unveiled the results of a 2023 study on the socioeconomic conditions of tobacco growers in Southern Brazil,  carried out by the Federal University of Rio Grande do Sul. The average per capita family income of tobacco farmers in the Southern Region of Brazil is BRL11,755.30 ($2,344.35), compared with average Brazilian per capita income of BRL1,625, contradicting the narrative pushed by NGOs that tobacco leaves growers in poverty.

  • Navigating the Fog

    Navigating the Fog

    Image: VlaDee/pavlofox

    Brazilian lawmakers mull regulation of e-cigarettes.

    By Claudio Teixteira

    In the face of growing concerns about public health, the expansion of the illicit market, and the persistent inaction of the Health Agency in assuming its regulatory responsibilities, the Federal Senate of Brazil has taken matters into its own hands with a bill for the regulation of electronic cigarettes in the country. This initiative, driven by Senator Soraya Thronicke, seeks to fill a legal loophole that has favored organized crime for over a decade and ensure adequate consumer protection. The bill under discussion in Brazil has the potential to mark a before and after in the vaping policy of the largest market in Latin America. Below, some fundamental aspects of this project are detailed, and the perspectives of experts on the subject are gathered.

    Nearly 15 years have passed since the Brazilian National Health Surveillance Agency (ANVISA) banned commercial activities related to electronic cigarettes, and the discussion about this measure remains as relevant as it was at the beginning.

    Although the current law does not restrict personal use or possession of vaping devices, the ANVISA’s decision in 2022 to maintain the ban, after an exhaustive review process and public consultation, has generated a polarized debate among the Brazilian population. The consultation conducted last February has revealed considerable interest from consumers and various social sectors in reviewing and softening the current rules, favoring a more open and evidence-based policy.

    The ANVISA’s decision not to engage in the regulation of vaping products has spurred a significant legislative reaction from the Federal Senate. This situation highlights a critical moment in Brazil’s public health policy, marking a possible turning point in how the country addresses the regulation of these contemporary and widely debated products.

    In this context, Bill No. 5,008 of 2023, promoted by Thronicke, emerges. This legislative initiative is proposed as a direct response to the ANVISA’s inaction and seeks to establish a comprehensive regulatory framework for electronic cigarettes and similar devices in Brazil. The project covers many aspects, including production, marketing, importation and exportation as well as the regulation and specific supervision of these consumer products.

    Intending to establish precise requirements for their control, this bill represents a comprehensive effort to manage the presence and distribution of vaping devices in the Brazilian market, ensuring proper regulation from their manufacture to their promotion.

    Benefiting Organized Crime

    The senator has expressed concern that Brazil, unlike 84 percent of Organization for Economic Cooperation and Development countries, lacks specific legislation to regulate electronic cigarettes. According to her, this omission leaves consumers vulnerable, facing a proven ineffective ban that does not align with the more advanced legal and regulatory standards adopted globally.

    Thronicke emphasizes that the protection of public health must be the priority, with a particular focus on the safety of young people. She proposes implementing strict regulations covering all aspects from production to marketing, promotion and consumption of these products. The senator maintains that adopting such measures is essential to minimize the risks associated with the use of electronic cigarettes and ensure a market supply that is responsible and regulated.

    The senator has expressed her deep dissatisfaction with Brazil’s current lack of regulation of electronic cigarettes. In an interview with Poder360, she pointed out how this legislative gap directly benefits organized crime. She highlighted the critical need to be held accountable for this omission and wondered who truly benefits from this legal void.

    “I wish those responsible for this omission face the consequences. I need to know who is behind this and who is facilitating organized crime operations. In this legal limbo scenario, the only beneficiaries are, without a doubt, criminal groups,” emphasized the senator, underscoring the importance of addressing and closing this legislative gap to combat the advancement of organized crime in this sector effectively.

    The senator’s concern extends to the quality and safety of vaping products in the Brazilian market. Many of these products evade regulations and contain components of unknown composition, posing a significant risk to public health. Furthermore, she criticizes the current prohibitive policies for their inconsistency, banning potential alternatives in favor of products whose dangers are already widely documented.

    Thronicke argues that if bans are to be implemented, they should be applied equitably, including traditional tobacco products. “If the decision is made to ban electronic devices, then conventional cigarettes should also face prohibition. It takes courage to do so, especially when nicotine is legal in Brazil, and electronic cigarettes represent just another way of consuming it.”

    These statements underline the urgency and complexity of formulating precise and compelling regulations for electronic cigarettes and other reduced-risk products in Brazil, focusing on safeguarding public health and combating illegality.

    Her concerns are evident when she points out how the absence of regulation benefits organized crime through the illicit trade of these products. She also highlights the risks of using unregulated devices and liquids whose ingredients are unknown and potentially harmful. “What is currently sold in Brazil evades any regulation. In Brazil, it’s simple to adulterate these products. The substances used for refilling or containing are made up of unknown ingredients, representing a serious health risk,” the senator emphasized.

    Knowing the Bill

    • The bill proposes that companies wishing to manufacture or import electronic cigarettes in Brazil register their products with the ANVISA. This process would include paying a “sanitary surveillance and inspection fee” set at BRL100,000 ($20,000) for each registration application or renewal.
    • Additionally, registering these products with the Brazilian Federal Revenue service will be required. As part of the process, interested parties must also submit a toxicological evaluation report to the ANVISA that should comprehensively analyze the additives and materials used in the products. This measure seeks to ensure rigorous control over the quality and safety of electronic cigarettes available in the Brazilian market to protect public health and ensure that only safe and regulated products are accessible to consumers.
    • The National Institute of Metrology, Quality and Technology and the National Telecommunications Agency will play crucial roles in establishing technical and safety criteria for the proper functioning of vaping devices. These guidelines will include regulations on safety in the charging process and standards for the wireless communication of devices, aiming to ensure that their use is safe and effective.
    • On the other hand, the bill introduces rigorous regulations for liquids containing nicotine, establishing a maximum volume limit of 22 mL and a maximum nicotine concentration of 35 mg per milliliter.
    • Additionally, the devices must be designed to prevent inappropriate tampering and ensure that they are inaccessible to children as part of a comprehensive effort to increase the safety of these products and primarily protect minors.
    • For heated-tobacco products and their respective packaging, the legislative project specifies that each package must contain 20 units, with a nicotine emission that does not exceed 1 mg per tobacco stick.
    • Product packages must include an informative leaflet covering essential aspects for the consumer, including instructions for use and storage, contraindications, possible adverse effects and warnings directed at at-risk groups.
    • The products must detail their ingredients, the nicotine concentration, the batch number and production and expiration dates. In addition, they must incorporate warning messages about health risks and the obligation to keep these products away from children and adolescents.
    • The products must display explicit warnings about several critical aspects of consumer safety and health. Firstly, they must prominently indicate the prohibition of their sale to minors under 18 years of age along with a strong recommendation against their use by nonsmokers. The need to keep the product out of reach of pets will also be emphasized.
    • Specific contraindications will be detailed to ensure that consumers are fully informed about situations in which the use of the product is not recommended or can be risky. This includes warnings focused on high-risk groups, such as pregnant women, people with diabetes and patients with heart conditions, reinforcing the project’s commitment to public health protection and the promotion of responsible consumption.
    • The product label must provide detailed information on the possible adverse effects of using the product and warnings about the risks of dependency and toxicity arising from its prolonged use.
    • The products will include detailed contact information, such as the company’s legal registry and the manufacturer’s or importer’s address, to ensure effective communication with consumers and facilitate the submission of complaints if necessary. According to the senator, this set of requirements promotes high transparency and accountability, encouraging these devices’ safe and informed use.
    • The packaging of electronic cigarette products must clearly and visibly display on their exterior a series of crucial information for the consumer. This includes a detailed list of ingredients, categorized explicitly and understandably by the type of additives and nicotine concentration. It is also crucial to include the batch identification, the production date and the product’s expiration date.
    • A prominent warning that the product must remain out of reach of children and adolescents is essential, along with a message about the health risks that must occupy at least 20 percent of the packaging surfaces most visible to the consumer.
    • Regarding the wording of the products, a specific prohibition will be implemented on using numbers, expressions or graphic elements that evoke flavors associated with desserts, sweets or any other element that may attract children and adolescents.
    • The ANVISA will determine the substances whose use will be prohibited, thus ensuring thorough control over the components of these products to safeguard public health.
    • The advertising of electronic cigarettes and related products will be subject to a rigorous ban in all media, including television, radio, billboards, print publications and digital platforms, such as social networks. The only exception allowed will be promoting these products within physical sales points or through e-commerce platforms, provided that strict age control is implemented to prevent minors from accessing them.
    • Expressly, any direct or indirect reference to youth culture is prohibited, including images of people who may be perceived as under 25 years of age, to deter interest in these products from this age group. These measures aim to reduce the appeal of electronic cigarettes and similar products among young people, safeguarding their health and well-being.
    • A robust age verification system will be required at the point of sale to confirm that the purchaser is over 18 years old, using biometrics or other equivalents.
    • Sales points must also comply with regulations prohibiting placing electronic cigarettes near products intended for children, such as candies and toys, thus avoiding any association that may be appealing to minors.
    • Furthermore, an explicit ban will be imposed on the free distribution of electronic cigarettes by manufacturers, importers or traders for promotional purposes to prevent encouraging consumption among new users, particularly young people.

    The regulations surrounding the consumption of harm reduction products will be established in line with the rules applied to traditional cigarettes, including restricting their use in enclosed spaces under existing legislation.

    The controversial prohibition of open-system devices is among the critical challenges to implementing and complying with the proposed regulation. These are characterized by a reservoir that can be refilled and generally offers the option to recharge. In contrast, closed systems comprise devices designed typically for single use, which are nonrechargeable and disposable after use.

    Such devices, due to their customization capability and low cost, present a significant alternative for those users looking to quit smoking by allowing them to adjust the nicotine concentration according to their specific needs.

    However, a critical limitation of the proposed law is that the prohibition significantly restricts the tools available for harm reduction and smoking cessation. This limitation to specific devices poses notable challenges in compliance and effective implementation of the regulation, implying the allocation of resources that could be used more effectively in other tobacco control strategies and in promoting awareness of the associated risks.

    ‘Chemical Weapons’

    The journey of the bill proposed by Thronicke in the Brazilian Senate is anticipated to be full of obstacles. One critic is conservative Senator Eduardo Girao, who has fervently defended the approval of his project, the PL 4.356/2023, which seeks to ratify the prohibitions already imposed by the ANVISA on electronic cigarettes, which he describes as “authentic chemical weapons with a technological varnish.”

    Girao argues that e-cigarettes are designed to attract new consumers, thus compensating for the loss of users that the tobacco industry has experienced in Brazil and globally over the last decades. During a plenary session of the Senate on March 11, he warned about the “serious health consequences in the short [term], medium [term] and long term” that an increase in the consumption of these devices could entail, especially among young people. Among these consequences, he mentioned an increase in the incidence of respiratory diseases, cardiovascular diseases and cancer.

    Despite this opposition, there are voices like that of Deputy Heitor Schuch suggesting that it’s unlikely any bill will succeed without explicit backing or a prior determination by the health agency.

    The scenario underscores the complexity of the legislative and regulatory debate around electronic cigarettes in Brazil, reflecting the divergence of opinions both within the political spectrum and in the academic and medical fields. The situation highlights the need for a deep and balanced analysis that considers both public health and the realities of nicotine consumption in the country. Amid this debate, various voices, including politicians, scientists and civil society representatives, urge Brazil to adopt a coherent and safe regulatory framework for nicotine products.

    With 22 million active smokers and about 3 million vapers, the lack of defined regulation and clear inequality in access to less harmful alternatives underline the urgency of establishing effective regulation through legislation. This measure is essential for promoting public health, social equity and economic stimulus. This raises the question of whether this will be the moment Brazil moves toward a more equitable and effective tobacco control policy.

    However, as several experts, including Schuch, have highlighted, the likelihood of any bill progressing without the endorsement or a preliminary determination by the health agency seems slim. This scenario highlights the complexities surrounding the formulation and implementation of public policies in tobacco control, emphasizing the importance of a consensus among the stakeholders involved to move toward solutions that adequately address the public health challenges in Brazil.

    Finding the Right Balance

    For professor Ingrid Dragan Taricano, a prominent toxicologist, regulating electronic cigarettes is at a decisive moment. Taricano identifies several aspects that underline the urgent need to regulate these devices, covering everything from public health and the protection of minors to environmental implications and risk and safety assessments from a toxicological perspective.

    Following the essential principle of toxicology, which holds that “every substance is toxic; it is the dose that makes the poison,” Taricano highlights the need to carry out rigorous health-risk assessments to establish safe exposure limits to any substance that comes into contact with humans. This approach emphasizes the importance of addressing concerns about toxic substances in electronic cigarettes and raises a crucial question: What is the safe dose for each component of these products?

    Bill PL 5008/2023 incorporates this vision by requiring the submission of toxicological evaluation reports for registering electronic nicotine-delivery devices with the ANVISA. Taricano views this proposal positively, highlighting its relevance within the regulatory framework to ensure a comprehensive evaluation considering the additives used, the manufacturing material and an objective toxicological comparison with traditional cigarettes.

    Taricano emphasizes the importance of toxicology as a cornerstone for developing policies and regulations regarding electronic cigarettes. This scientific discipline provides the foundation for establishing quality and safety criteria, restricting certain ingredients and flavors and adopting measures to prevent young people’s access to these products.

    In nations where effective regulation has been implemented, specific limits for nicotine concentration have been determined, and proven quality components of e-liquid have been required. This scenario contrasts significantly with deregulated markets, where devices can contain dangerous substances without supervision, as Taricano warns.

    She criticizes positions against regulation that focus solely on the presence of harmful elements in electronic devices, overlooking the fundamental toxicological principle that “every substance is toxic, and everything is a matter of dose.” According to Taricano, user safety can only be guaranteed through the appropriate regulation of the quantities and quality of the components.

    Taricano highlights the complexity of establishing balanced regulation that protects public health without inhibiting innovation or individual freedom. For her, it’s fundamental that regulatory decisions are supported by a solid scientific base, ensuring that both the risks and benefits of using electronic cigarettes are considered. In this sense, science must be the beacon that guides toward informed and effective regulation, always with consumer well-being as the highest priority.

    ‘An Obstacle to Quitting’

    Alexandro Lucian, a renowned expert in harm reduction associated with smoking and leader of the Directory of Information for Tobacco Harm Reduction, a nongovernmental organization dedicated to improving anti-tobacco policies, highlights the bill’s importance as an essential tool to address current issues of smuggling, tax evasion and the indiscriminate use of products attractive to young people.

    Lucian points out that this project seeks to ensure that consumers have access to products that comply with appropriate health regulations and are adequately informed about the risks involved in their use.

    However, Lucian emphasizes that the bill requires significant reforms. He criticizes the imposition of an annual registration fee of BRL100,000 and the misclassification of electronic cigarettes as tobacco derivatives, which could hinder the legalization of numerous existing initiatives, thus fostering the illegal market and posing a risk to public health. “This fee will prevent most of the initiatives already existing in the country from becoming legal, fueling illegal trade and bringing incalculable risks to public health,” he says.

    He also underscores the need to review the project section that suggests banning open systems, which many users prefer. He argues that restricting legal access to these systems could further stimulate illegal trade. Lucian highlights that these systems, by offering the possibility to adjust the nicotine dose, facilitate the process for traditional cigarette smokers to migrate to electronic ones and, over time, give up the smoking habit.

    ‘An Obstacle for Small Businesses’

    From the consumer’s perspective, Ignacio Leiva, leader of ASOVAPE Chile and coordinator of the “Vaping Is Not Smoking” campaign, is a recognized activist who has significantly contributed to formulating progressive vaping regulations in Chile. Sharing his vision of the situation in Brazil, Leiva considers that Thronicke’s project represents a notable advance for Brazilian legislation, which currently faces unfavorable conditions due to the total ban.

    According to him, this situation has fostered the rise of a black market that not only puts consumers’ health at risk due to the lack of control over product quality but also deprives the state of significant tax revenues in addition to benefiting marginal groups that trade in these products.

    Leiva expresses concern about the BRL100,000 required for product registration, which he sees as a particularly onerous barrier for small-sized and medium-sized enterprises, possibly favoring large corporations and potentially resulting in a monopoly in the sector.

    While he supports advertising restrictions for conventional tobacco, Leiva advocates for greater freedom in promoting harm reduction products. He highlights the need to inform society about less harmful alternatives. He argues that regulation facilitating access to safe and regulated options can motivate a positive change in consumption habits, reducing tobacco use and benefiting public health. Moreover, he defends adopting fair regulatory measures that do not unjustly favor large corporations to the detriment of smaller market players.

    Leiva emphasizes the importance of achieving a balance between offering less harmful alternatives to smokers and protecting minors. He positively values the measures included in Thronicke’s proposal to prevent minors from using electronic cigarettes. He applauds the initiative to restrict the sale of these products alongside items aimed at the child and youth audience. This approach reflects, in his opinion, a solid commitment to the protection of young people, ensuring that efforts to minimize the harms associated with tobacco do not increase the use of electronic devices among the most vulnerable population.

    Protecting Public Health and Promoting Equity

    The voices of politicians, civil society members and scientists urgently highlight the need for a more coherent and safer regulatory framework for managing nicotine products in Brazil. There is widespread agreement on the need to focus policies on protecting public health and combating illegal trade as well as addressing smoking-related complications.

    It is also recognized that adopting appropriate regulations in the country would benefit public health and boost the economy through job creation, increased revenues and significant fiscal contributions to the state. This perspective underscores the importance of a balanced approach that combines health objectives with economic incentives to positively impact the population’s well-being and the country’s economic development.

    Although Brazil records lower smoking rates compared to other nations, there remains a significant fraction of the adult population, approximately one in eight adults, who continue to smoke. This represents about 22 million people. This data, derived from national statistics on tobacco consumption, highlights the pressing need to implement effective public health policies.

    The prohibition of products recognized as harm reduction options in Brazil poses a severe challenge in terms of social justice. A higher incidence of smoking is observed in the lower socioeconomic classes compared to the ability of middle and high classes to access less harmful alternatives, which evidences an apparent disparity in access to healthier options.

    This inequality suggests that strategies to promote a healthier lifestyle are predominantly available to those with greater economic capacity, leaving people with fewer resources and limited options to quit or reduce tobacco use. This scenario underscores the need to adopt inclusive measures that allow all layers of society to benefit from safer and more effective alternatives for smoking cessation.

    The current prohibition becomes a significant obstacle to implementing public policies aimed at improving access to harm reduction methods in communities most impacted by smoking. In this context, adopting effective regulation emerges as a crucial element, with the potential to make harm reduction strategies accessible to all levels of society, thus helping to mitigate health inequality.

    The discussion on regulating less harmful alternatives, such as electronic cigarettes, becomes especially relevant, offering solutions to the adverse consequences of prohibition in Brazil’s social fabric. Furthermore, this debate opens a new avenue in the fight against smoking. Considering social justice issues, it is imperative to promote policies that foster equity and ensure fair access to safer options for all citizens.

  • Tobacco Stakeholders Debate Forestry in Brazil

    Tobacco Stakeholders Debate Forestry in Brazil

    Photo: Taco Tuinstra

    Stakeholders highlighted tobacco industry initiatives to preserve Brazil’s native forests and achieve energy self-sufficiency at the Expoagro Afubra 2024 fair in Rio Pardo, Rio Grande do Sul, Brazil, on March 22.

    SindiTabaco technical advisor Fernanda Viana Bender presented a number of projects designed to promote forest sustainability in tobacco farming in partnership with the Federal University of Santa Maria (UFSM).

    The program aims to cultivate trees to meet tobacco farmers’ fuel requirements while preserving native forests. At 22 demonstration units in Rio Grande do Sul, the UFSM research team, led by Jorge Antonio de Farias, is testing the management of fast-growing trees.

    While the programs provide stakeholders with valuable knowledge, Bender says there is still much to learn. “We need to develop a way of thinking that forest production is a tobacco farmer’s business,” she was quoted as saying on SindiTabaco’s website. “Without wood, there is no tobacco curing. However, beyond the demand by the sector, farmers could also get organized to diversify with forest production, thus earning extra income,” she argued.

    Farias identified a number of challenges to achieving those goals. “As the farmers possess small farms, land availability is one of the problems that make it difficult to plant trees, and the same holds true for the transport logistics of the production,” he observed.

    “At the same time, we witness a sector extremely concerned with the supply of wood of legal origin while the farmers strongly demand wood. The solution goes through the creation of cooperatives or associations capable of articulating this market, and the tobacco sector could be a protagonist in this process. The forest component should become an integral part, when it comes to establishing a rural property, as an alternative source of income,” said Farias.

  • Short Brazilian Crop Selling Rapidly

    Short Brazilian Crop Selling Rapidly

    More than half of the tobacco produced in southern Brazil had been sold by the middle of March, reports Kohltrade, citing figures released by the growers’ organization Afubra. Driven by a short crop, the average per-kilo price was up nearly 20 percent over that paid during 2022-2024 marketing season.

    According to the Ministry of Development, Industry and Commerce, Brazil shipped 512 million kg of tobacco in 2023, generating $2.73 billion in earnings. In the first two months of 2023, the country exported 75.3 million kg valued at $492.7 million.

    According to information from Emater-RS, tobacco prices reached values above BRL20 ($4.02) per kilo for dry leaf, reaching up to BRL390 per arroba [11.34 kg]  for tobacco classified as BO1 in some regions. However, producers expressed concern about the weight of the leaves, which has been lower than anticipated due to heavy rains during the growing season.

    Reduced volumes and high prices are also accelerating leaf sales. Industry representatives expect sales, which normally extend to the end of June, to end in late April this season.

    Brazil’s tobacco crop has been heavily impacted by the El Nino weather phenomenon this year. When production started in May 2023, the industry expected to harvest 10 percent more  leaf than in the 2022-2023 growing season based on the area planted.

    While the climate conditions initially supported the expectations for a larger crop, heavy rains from mid-July to the end of November forced the industry to adjust its figures downward. Instead of a 10 percent increase, market watchers are now predicting 20 percent drop in volume compared with 2023.

    Rainy growing seasons tend to result in lower nicotine levels. Because this season’s heavy downpours followed three years of drought, which resulted in record high nicotine levels for Brazilian tobacco, there is now an unprecedented gap in the nicotine levels of the 2023 and 2024 harvests, averaging 0.35 percent to 0.5 percent for grades XC to BM, and up to 0.8 percent for grades B and BT.    

    But while nicotine levels have declined, the quality of Brazil’s tobacco is up significantly, with great maturity and a very good aroma. According to Kohltrade, Brazil’s tobacco this year has a very good and intense “flavor,” including in XC grade. Leaf position is showing good quality, and what in previous years was predominantly “LO” to “OF” light orange to orange, this year is “O” orange to “F” full orange or deep orange.

    Overall, the industry expects a small drop in sugar levels.

    With the reduction in volumes, competition has been fierce for Brazil’s 2024 crop. All companies are rushing to buy their volumes and serve their customers, greatly inflating the market and accelerating the process of purchasing tobacco.

  • AOI Brazil Invests in Seed Production

    AOI Brazil Invests in Seed Production

    Image: AOI

    Alliance One International has opened a seed industrialization unit at its Global Research, Development and Deployment Center in Passo do Sobrado, Brazil.

    Alliance One is a major supplier in Brazil’s tobacco seed market, with tobacco grown from the company’s varieties comprising approximately 40 percent of the tobacco produced in the country. According to AOI, the new seed industrialization unit positions the company for global growth as a leader in tobacco crop solutions with the ability to provide customers and farmers with best-in-class genetics.

    “Our new unit provides us with greater quality control of our seed products and makes it possible for all activities to be governed by our internal integrated quality management system,” said Helio Moura, vice president of global agronomy at Alliance One, in a statement. “Improved quality control opens doors to sell our seed in new markets at a faster speed, increases customer and farmer satisfaction, and drives efficiencies within our business.”

    According to AOI, the new equipment furthers the company’s efforts to combine cutting-edge technology with advanced agricultural practices to produce high-quality seeds for tobacco production. The machinery is designed to handle small seeds such as tobacco, a rare specification in various markets, and perform a range of essential seed processing functions including threshing, grading, upgrading, pelleting, drying and seed finishing. These capabilities help improve seed germination, stimulate healthy, consistent crop development and increase yield—key elements to improving farmer livelihoods and meeting customer volume requirements and specifications.  

    The unit has an annual processing capacity of nearly 2 metric tons and the ability to pelletize more than 200,000 cans of seed for sale each year. “The company’s global research, development and deployment center plays a fundamental role in promoting quality, productivity and sustainability in tobacco,” said Moura. “Our agronomic input packages are tested at the center before going to the field, positioning our Company to deliver extremely competitive genetics to the farmer.”

    Alliance One says its genetics promote higher quality, yield and disease resistance in tobacco crops and are proven to reduce the amount of crop inputs, such as crop protection agents, fertilizer and nutrients necessary for production. This reduction results in a lower cost of production for the farmer while driving forward a more sustainable industry.

    “Our strategy has allowed us to develop global solutions and approaches, respecting the culture and speed of each market, aiming to strengthen the future of and bring efficiency to our supply chain,” said Moura.

    AOI says it remains committed to the innovation of sustainable agriculture practices and driving advancements in the agriculture sector that will support farmers and customers across the globe.

  • Tobacco Theft Down in Brazil

    Tobacco Theft Down in Brazil

    Photo: Souza Cruz

    A program to prevent container theft in southern Brazil is proving successful, according to the Interstate Tobacco Industry Union, SindiTabaco.

    In 2019, the sector recorded 26 thefts throughout the region; in 2022, there were only eight, and only one of these occurrences took place in Rio Grande do Sul, the center of Brazil’s cigarette tobacco industry.

    In 2023, the industry lost six containers to theft, including four raw tobacco cargoes and two containers with processed tobacco for export.

    Iro Schuenke

    During a Dec. 12 meeting with public security officials, SindiTabaco president Iro Schuenke urged stakeholders to remain vigilant as movements of containers intensify during the next months.

    Thieves are increasingly targeting processed tobacco, he noted, citing recent thefts of cargos heading to the port of Rio Grande.

    During the meeting, participants discussed theft-prevention measures such as increased police escorts, traveling in truck convoys and predetermining stops for drivers.

    Tobacco exporters and shippers, meanwhile, are evaluating ways to reduce the time it takes for the containers to arrive at the port, so as to avoid, for example, evening transportation.

    “If evening transportation is absolutely necessary, the companies can previously contact the security organs asking for an escort to accompany the truck”, said Regional Police Chief Officer Luciano Fernandes Menezes.

    To help tobacco shippers improve security, SindiTabaco has prepared an information leaflet with best practices.

  • Excessive Rains Torment Brazilian Crops

    Excessive Rains Torment Brazilian Crops

    Photo: Ronaldo Almeida

    The tobacco-growing areas in southern Brazil have been severely affected by adverse weather, according to a crop update provided by Kohltrade. In addition to hail, tobacco farmers have had to cope with excessive rains this season, causing plant roots to drown and leaves to develop spots.

    Farmers were forced to harvest wet fields. Limited curing capacity will likely produce a higher percentage of mahoganies this season.

    Despite an increased planted area, the average flue-cured Virginia (FCV) crop yield in the three southern states is estimated to be 20.5 percent lower compared than in a typical year.

    Since weather patterns are not expected to change during the Brazilian summer, industry experts expect the total green FCV volume to be around 475 million kg.

    The same weather conditions are forcing air cured burley farmers to collect and hang underdeveloped plants. Many farmers are reporting rotting leaves.

    The negative impact on green volume is more than 20 percent, and Brazil is expected to produce around 39 million kg of burley this year. Lower yields will likely affect factory performance as well.

    Small traders are already purchasing the new crop at inflated prices. The overall quality of the low stalk is poor due to the high inclusion of house-burned and unseparated leaves.

    Historically, Brazilian rainy crops result in good-quality upper stalks, however. Alkaloid tests in early areas are showing lower nicotine levels, as expected.

    In December, some companies began purchasing FCVs, while others began purchasing burleys as early as November. Farmer associations predict an increase in the cost of green product of more than 10 percent.

  • Brazil: Over 500 Packs of Cigarettes Seized

    Brazil: Over 500 Packs of Cigarettes Seized

    Image: AlfRibeiro

    Brazilian military police seized a shipment of over 500 packs of cigarettes in the municipality of Novo Santo Antonio, reports Diario de Cuiaba. Over BRL2,300 ($466.09) in cash, checks, lighters and electronic cigarettes was collected. Two were arrested.

    During a roadblock, the suspect fled at high speed and was subsequently detained. The driver then admitted to carrying a shipment of cigarettes and other devices without a receipt. He also admitted to carrying packs of cigarettes from Paraguay and checks worth BRL6,700.

    The illicit products were found under the passenger floor mat.

  • Brazil Busts Fake Cigarette Network

    Brazil Busts Fake Cigarette Network

    Photo: Policia Federal

    Brazil’s Federal Police cracked down on a criminal network trafficking fake Paraguayan cigarette brands in Minas Gerais state, according to the Organized Crime and Corruption Reporting Project (OCCRP). Law enforcement agents reportedly issued multiple arrest warrants and froze more than $4 million in assets.

    The suspects face charges of smuggling, counterfeiting, human trafficking, slave labor, forgery, misuse of machinery, crime against consumer relations, crime against trademark registrations and money laundering.

    Led by a businessman from Sao Paulo, the organization forced Paraguayan nationals to make the cigarettes in hidden factories. The group reportedly picked up workers in Paraguay, blindfolded them, and drove them east across the border into Brazil, where they were  held under surveillance inside the factories for several months. Their telephones were confiscated and they had no contact with the outside world.

    The workers produced counterfeit versions of Paraguayan brands, such as the Tabesa’s TE, Eight and Palermo. Once finished, the cigarettes were transported in trucks, hidden behind shoes.

    Paraguay is a major contraband hub in South America. More than 97 percent of cigarettes produced in Paraguay end up in countries such as Brazil. The business is also entangled with money laundering, political corruption and criminal gang activities.

    In March of this year, the OCCRP reported on the rescue of 19 Paraguayans trapped in an illegal cigarette factory in Rio de Janeiro. Brazil rescued 918 people working as slaves in the first three months of this year.