Tobacco producer revenue increases 25%

Sao Paulo-the Association of Tobacco growers in the Rio Grande do Sul (Afubra) estimates that the revenues of producers with the vintage 2016/2017 25% must grow to the previous cycle, for R $6.5 billion.
The marketing of the harvest has ended this month the final data of culture should be disclosed by entities of the sector at the beginning of September. 2015/2016 harvest, growers received R $5.2 billion.
According to the tobacco sector Chamber President and Secretary of Afubra, Romeo Schneider, the growth is due to the volume produced in the cycle, which reached 727,800 tons, an increase of 30% compared to the previous cycle, when were grown 538,600 tons. "Revenues increased even with the fall of more than 10% in the average price," says the leader of the Afubra.
The average amount paid by the pound hit industries of R $9.10 this harvest before R $10.3 in the previous harvest, indentation of 11.6%. "However, the figures have improved at the end of the harvest due to the break recorded in two of the leading world producers: Zimbabwe and Malawi," he explains.
Malawi is one of the largest producers of burley type tobacco in the world, with 150,000 tonnes per year, on average, while the Zimbabwe accounts for 160,000 tons of tobacco Virginia type per year, according to Schneider.
The increase in production was possible due to the increase of productivity in the field. The average obtained in crops was 2500 kilos per hectare, with peaks of 3500 kilograms per hectare, according to Schneider. The result was the largest of the last five seasons.
"I''ve never seen anything like this before," says the Manager. 2015/2016 harvest, the average was 2000 kilos per hectare.
Considering the entire production chain, the turnover reached $29.2 billion in R year 2016, compared with $25 billion recorded in the year R of 2015, an increase of 16.8%.
Vintage new
For the cycle that began in July, Schneider estimates that between 720,000 tons and 730,000 tons, close to the volume obtained from the last cycle. "The market has no way to absorb more than that," said the leader.
The planting of the area, you must repeat the 300,000 hectares last year, already reaches 35%, according to Schneider.
According to the Chairman, in addition to the expectation with the new crop, wait for the decision of the Federal Supreme Court (STF) on the prohibition of the use of additives in cigarettes manufactured in the country, scheduled in DRC 14, Anvisa. The trial was scheduled for last week, but was delayed.
"If it is approved, you can only use tobacco and sugar replacement to the variety burley," he says. "That would end the american blend that consumers are accustomed to purchasing," says