2Firsts Interviews Afubra’s Marcilio Drescher: Can Brazil’s Tobacco Growers Adapt to the NGP Era?

Jun.09.2025
2Firsts Interviews Afubra’s Marcilio Drescher: Can Brazil’s Tobacco Growers Adapt to the NGP Era?
Brazil has long been hailed as a global model in tobacco farming—known for its high yields, quality leaf, and sustainable practices. But shifting demographics, labor shortages, and the rise of next-generation products are reshaping the landscape. In this 2Firsts exclusive, Afubra President Marcilio Drescher reflects on 70 years of progress and the uncertain road ahead for Brazil’s 90,000 growers.

Brazilian Growers Group Celebrates 70th Anniversary

Taco Tuinstra, Global Editor in Chief at 2Firsts, reporting from Argentina

 


 

During the International Tobacco Growers Association’s (ITGA) recent regional meeting in San Salvador de Jujuy, Argentina, participants repeatedly praised Brazil as an example for other origins. Not only does the South American country consistently rank as the world’s largest tobacco exporter by volume, but it is also widely recognized for its leaf quality and good agricultural practices. Brazilian growers are global leaders when it comes to yields, soil preservation, reforestation and the eradication of child labor.

 

This enviable position is due in part to the country’s integrated production system, which is characterized by a high degree of coordination between tobacco buyers and growers. Tobacco companies provide farmers with agricultural inputs, extension services and financial support, and commit to purchasing the entire harvest at prices negotiated based on quality. The farmer in turn gets a guaranteed market, significantly reducing the risk associated with agricultural activities.

 

Another element behind the success of Brazil’s tobacco business is the strength of its institutions. Manufacturers, merchants and leaf producers each have professional organizations representing their interest and interacting with other stakeholders. Tobacco growers, for example, have benefited from the support of Afubra. Founded in 1955 by tobacco farmers seeking mutual support against challenges such as hail damage and market instability, the organization has evolved into a significant player in Brazil’s tobacco sector. Representing more than 90,000 growers—some 80 percent of southern Brazil’s tobacco producers—Afubra’s initiatives now encompass technical assistance, environmental education and programs aimed at diversifying members’ incomes.

 

The growers group is led by President Marcilio Drescher, who was born into a tobacco-farming family. As an adult, he cultivated 1-2 ha of burley in Santa Catarina, one of Brazil’s leading tobacco-producing states. Later, he directed a local farmers’ union, a position that led to a seat on Afubra’s council and ultimately to that organization’s presidency.

 

2Firsts caught up with Drescher and asked him about the outlook for Brazilian leaf as Afubra celebrates its 70th anniversary.

 

2Firsts Interviews Afubra’s Marcilio Drescher: Can Brazil’s Tobacco Growers Adapt to the NGP Era?
Marcilio Drescher next to a poster advertising Afubra’s mutual assurance program for tobacco growers. | Photo: Taco Tuinstra

 

Congratulations on your anniversary. How are you celebrating this milestone?

 

We kicked off celebrations at Afubra’s headquarters in Santa Cruz do Sul. The event was live-streamed to all branches in three producing states, Rio Grande do Sul, Santa Catarina and Parana. A second celebration was held at the ExpoAgro exhibition in Rio Pardo, which was attended by some 400 tobacco farmers and their wives. We will keep the momentum going with additional celebrations throughout the region, culminating at Afubra annual general meeting in July.

 

What do you consider to be Afubra’s greatest accomplishment?

 

Our organization was founded to provide tobacco growers with mutual insurance against hail damage, which was unavailable in the market. The Brazilian government provides no support or subsidies to the tobacco growing sector, so we take care of ourselves. The creation of this insurance system remains our greatest accomplishment. Even today, our scheme remains unique in the world.

 

What in your view are the greatest challenges facing the leaf tobacco sector in Brazil?

 

The greatest challenges facing our members are agricultural labor and farmer succession. Farm families have been shrinking, which means they must hire workers—but these are hard to come by in Brazil nowadays. And when labor is available, it comes at a very high price, so this inflates our cost of production.

 

At the same time, the young generation is disinclined to carry on their parents’ businesses. When farmers retire, their operations simply stop. This situation, by the way, is inherent not just to tobacco but also prevalent in other crops.

 

What can be done to address these problems?

 

There is not much that can be done other than providing better incomes. The price of tobacco has gone up in recent years, which offers an incentive even for reluctant youngsters. But without this, the next generation will leave the farm to study in the cities or do something else. Without incentives, it’s difficult.

 

Is it possible to mechanize tobacco production?

 

You can mechanize to some extent, but beyond that you will lose quality. The reputation of Brazilian tobacco is in large part built on manual labor.

 

How do the earnings of tobacco compare to those of other crops?

 

The average tobacco farm in southern Brazil measures 14 ha, of which only 2.5 ha is used to cultivate tobacco. The remainder of the property is dedicated to other crops or purposes. Yet these 2.5 ha are responsible for 55 percent of the farmer’s earnings, which means tobacco generates a disproportionately high share of the grower’s income.

 

2Firsts Interviews Afubra’s Marcilio Drescher: Can Brazil’s Tobacco Growers Adapt to the NGP Era?
Afubra expects Brazil to produce significantly more tobacco this year because of better growing conditions and the high prices paid during the 2024 marketing season. | Photo: Taco Tuinstra 

 

Please comment on the current crop in terms of volume and quality. What factors influenced this year's crop?

 

The volume of this crop is significantly higher than that of the previous one because the previous harvest suffered an average productivity drop of over 20 percent. This year, things returned to normal, with normal or even good productivity in some instances. As for quality, it is also generally reasonable in most producing regions across the three southern states.

 

So, the reason this crop is much larger—with an estimated supply of approximately 700,000 tons—is the return to normal productivity levels and an increase of nearly 10 percent in planted area. This increase was driven by the attractive prices received by producers in the previous harvest, which prompted existing growers to expand their planting areas and new producers to enter the business.

 

How have Afubra’s members and associates been affected by the emergence of next-generation products (NGPs)?

 

We have not yet observed producers being affected because the demand for Brazilian tobacco—which is exported to over 100 countries—has held up. All this new consumption of nicotine in other forms has not yet had a significant enough effect for us to say it has had an impact.

 

What has affected us more are issues with illegal tobacco and cigarettes coming from other origins, or even those produced illegally within Brazil—often using Brazilian-grown tobacco that ends up in those markets.

 

Do you see a role for Brazilian tobacco in the NGP business? What changes, if any, will the Brazilian tobacco industry need to make to serve this growing segment?

 

We do not yet clearly envision everything this new market might offer us, or how it could harm us due to changes in consumption habits. So, for now, many doubts remain, and it is difficult to predict anything with precision.

 

Are you optimistic or pessimistic about the future of the tobacco sector in Brazil, and why?

 

I remain optimistic because Brazil has established itself as a global benchmark in tobacco due to its productivity and quality. It's a very artisanal product, produced by small farmers. Socially, this is a very important aspect considered by some markets.

 

We’ve now reached a point where organizations like Afubra, federations, unions, and even Sinditabaco [the interstate tobacco union, representing tobacco companies], through companies, are discussing the restructuring of the integrated system, which has gone somewhat off course and needs to be treated more seriously.

 

The system needs to return to functioning with full responsibility on both sides. The companies, in particular, have strayed a bit from the serious path of the integrated system, and the producers also have their part to play.

 

In this way, I am very optimistic that Brazilian tobacco will remain a global benchmark for a long time, just as it is today.

 


Cover photo:Visitors admire tobacco during Afubra’s annual Expoagro exhibition in Rio Pardo, Rio Grande do Sul, Brazil. | Photo: Taco Tuinstra

 


 

Click to read the ITGA special report:

 

PMI’s Japan unit to raise IQOS ILUMA stick prices; TEREA and SENTIA to increase from April
PMI’s Japan unit to raise IQOS ILUMA stick prices; TEREA and SENTIA to increase from April
Japan will adjust tobacco taxes from April 1, 2026, prompting Philip Morris International (PMI) to lift prices for its IQOS ILUMA tobacco sticks TEREA and SENTIA. Both products are set to rise by 40 yen per pack (about $0.3).
Jan.21 by 2FIRSTS.ai
Exclusive | China Releases E-Cigarette Regulatory “Status Report”, First Comprehensive Disclosure of Oversight Framework and International Cooperation
Exclusive | China Releases E-Cigarette Regulatory “Status Report”, First Comprehensive Disclosure of Oversight Framework and International Cooperation
As 2025 draws to a close, China’s State Tobacco Monopoly Administration has released a white paper–style “Status Report” on e-cigarette regulation, systematically outlining its oversight framework, enforcement outcomes and international cooperation. 2Firsts provides exclusive in-depth reporting and analysis, offering insight into China’s regulatory logic and governance direction.
Dec.29 by 2Firsts Perspectives
China Boton Group Resumes Trading, Soars 55.56% to 52-Week High; Signs Land Acquisition Agreement with Shenzhen Government - Reuters/AP
China Boton Group Resumes Trading, Soars 55.56% to 52-Week High; Signs Land Acquisition Agreement with Shenzhen Government - Reuters/AP
China Boton Group (HK.3318) resumed trading on December 10, opening at 2.800 HKD and surging 55.56%.
Dec.10 by 2FIRSTS.ai
Product | Featuring a 1.47-inch TFT color display and up to 40W output, the Aspire Fluffi Pro launches in European channels.
Product | Featuring a 1.47-inch TFT color display and up to 40W output, the Aspire Fluffi Pro launches in European channels.
Aspire, a brand under Eigate Technology, has launched the open-system Fluffi Pro on its official website. It is now available via select online channels in Switzerland, Italy, and France at around €24.5, featuring upgrades over the standard Fluffi in power and battery capacity, screen configuration, high-wattage coil specs, and a redesigned side-fill/side-airflow structure.
Jan.13 by 2FIRSTS.ai
Special Report| Vuse Gains as U.S. Cracks Down on Illegal Vapes, But a $590 Million China Export Shadow Looms
Special Report| Vuse Gains as U.S. Cracks Down on Illegal Vapes, But a $590 Million China Export Shadow Looms
The payoff is here: BAT’s Vuse has seized a rare regulatory vacuum to reverse its U.S. slide, capitalizing on a crackdown that seemingly compressed the illicit market to 54%. But the victory is fragile. A record $590 million export shock in October signals the gray market is striking back—pitting a fleeting compliance dividend against a massive inventory wall.
BAT
Dec.09
BAT’s Vuse Ultra listed as GOOD DESIGN Awards winner; features app connectivity and adjustable intensity
BAT’s Vuse Ultra listed as GOOD DESIGN Awards winner; features app connectivity and adjustable intensity
British American Tobacco’s (BAT) Vuse Ultra vaping product has been listed among winners on the U.S. GOOD DESIGN Awards website, in the “Personal Experience” category, according to the project page. The page identifies the award year as 2025 and names BAT (London) as both the entrant and the manufacturer.
Jan.20 by 2FIRSTS.ai