Tobacco crop 2014/15 has seen increased productivity and lower the average price

This season has seen increased productivity and lower average price.

With 80% of the crop 2014/15 already marketed in the three southern states, the Tobacco Growers Association of Brazil (Afubra) announced over the weekend that there was an increase in productivity, in addition to a lower average price for Virginia tobacco, the most common in the region. The numbers are based on a survey conducted by the entity with 1,759 farmers in Rio Grande do Sul, Santa Catarina and Paraná states.

According to the entity, the average productivity in the tobacco fields for the Virginia kind is 2,521 kilograms per hectare, so far. During the same period, last season, the average was 2,456 kilograms per hectare, ranging from 3%. Despite the slight increases in the average prices practiced by the industry, since the beginning of May – about 5%,  Afubra found that the increase is of 6.4%, which was agreed upon by most companies, wasn´t actually passed to the growers.The average increase should stay at 4%, no more than that. That is, there will be a decline in the price compared to the previous season.

For the 2015/16 crop, which is already being prepared in regions such as southern Santa Catarina and Vale do Rio Pardo, in Rio Grande do Sul, the orientation of Afubra is for producers to reduce the crop by about 10 %.