Tobacco exports expected to grow 10% by 2018

After a 2017 stability in tobacco exports, Brazil is expected to register a 10% increase in shipments by 2018. This is the trend pointed out by the PricewaterHouseCoopers survey commissioned by the Intersectoral Tobacco Industry Union (SindiTabaco). Exports of tobacco are expected to increase from 10% to 15% in volume and from 15% to 20% in dollars. 

Data released by the Ministry of Development, Industry and Foreign Trade (MDIC) showed growth in the first quarter. To date, 107.1 thousand tons have been shipped throughout the country, generating foreign exchange of US $ 482.9 million, an amount 73% higher in volume and 90% higher in dollars compared to the same period in 2017. 

According to the president of SindiTabaco, Iro Schünke, the growth can be explained by the size of the crops. “This increase was already expected since it is a direct result of inventories from the 2016/17 harvest, when 686 thousand tons were produced, which was higher than the previous harvest, which resulted in 540 thousand tons,” says SindiTabaco president Iro Schünke. 

The main destinations to date have been Belgium, USA, Indonesia, Russia and Germany. Considering only the Southern Region, a major tobacco producer, were 105.8 thousand tons and US $ 465.3 million exported, with 78% destined for the port of Rio Grande, in Rio Grande do Sul. 

Second in production

Brazil remains in second place in the world production ranking, behind only China. In the 2016/2017 harvest, 686 thousand tons were produced, which generated more than R $ 6.09 billion in revenue for producers and R $ 13.9 billion in taxes. The 150 thousand Brazilian producers cultivated 299 thousand hectares with tobacco in 566 municipalities. In the Country, there are 600 thousand people involved in rural production and 40 thousand direct jobs in