BRAZIL
Cost of Virginia tobacco up 43%

A preliminary assessment of the Brazilian tobacco crop for 2021/2022 has shown that the price paid for Virginia tobacco was up by 43 per cent compared to the previous year, according to Kohltrade.

The assessment was presented by the president of the Brazilian Tobacco Growers Association (Afubra), Benício Albano Werner, at the first meeting of the year of the Rio Grande do Sul Tobacco Sector Chamber.
Afubra’s technical and field teams carried out marketing surveys with tobacco growers in three of Brazil’s southern states and found the price paid for Virginia lay at BRL 15.09 (USD 3.04) compared to BRL 10.54 (USD 2.13) in the previous season and BRL 13.48 (USD 2.72) instead of BRL 10.02 (USD 2.02) for Burley.
Across the board, companies are paying more than USD 3 per kg of Virginia tobacco and competition is still strong to buy the remaining stocks. By the end of April, on average, in the three southern states of Brazil, 73 per cent of the Virginia, 93 per cent of Burley and 92 per cent of Comum tobacco were already sold to the companies, reports Kohltrade.
The increase in export prices for 2022 can be put down to the increase in costs of energy, fuel, imported fertilizers, local logistics and labour.

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