Universal Corp lowered forecasts for the current crop year, saying adverse weather should lower flue-cured output by 11 per cent this year (excluding China) and for burley by 6 per cent.

By fiscal year 2017, the independent leaf merchant said it expects the production declines due to weather and reduced planting will bring world markets “largely into balance.”
Through nine months ended 31 Dec, Universal sales of flue-cured and burley fell to USD 1.2 billion (EUR 1.1 billion) from USD 1.4 billion. Sales of dark air-cured, oriental and other operations rose to USD 128 million from USD 116 million. Operating income slumped to USD 101.2 million from USD 106.5 million.
“The El Nino weather pattern has negatively impacted crop production levels in Brazil, and this weather pattern also has the potential to affect African crops,” said Chief Executive Officer George Freeman. “While we are pleased to see the movement away from the oversupplied conditions that have characterized the past two years, we remain cautious in our future crop planning and contracting commitments in order to remain in alignment with the global leaf requirements of our customers.”