According to a marketing survey conducted by the Tobacco Growers Association, Afubra, tobacco buyers in Brazil saw a 43% increase in purchases of Virginia tobacco leaves and a 35% increase in purchases of burley tobacco leaves.
During a meeting at the South Rio Grande Tobacco Association on May 4th, President of Acre, Brazil, Benício Albano Werner, stated that this year the average price for small cigars is 15.09 Brazilian reais per kilogram (equivalent to 3.16 US dollars), while in 2021 at approximately the same time, the average price for rough wheat was 13.54 Brazilian reais per kilogram.
Industry insiders report that there is fierce competition to purchase excess supplies of green tobacco from farmers. As of the end of April, the states with major tobacco production - Rio Grande do Sul, Santa Catarina, and Paraná - have sold 73% of Virginia tobacco, 93% of Burley leaf, and 92% of Comum tobacco to leaf merchants.
The rise in prices can be attributed to the increase in costs of energy, fertilizers, and labor, among other factors.
Source: tobaccoreporter
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