ahead
T
he samequ lity that identifies theBrazilian tobacco in theworldappears in
the sector’s urge in the Country in continuing in the leadership in the trade
of this product, a fact that has been occurring since 1993. In 2015, with a
bigger crop size, the volume shipped by Brazil (99.4% from the South) re-
sumed its growth (8.6%), to 517 thousand tons, although revenue brought
in (US$ 2.19 billion) was down about 12.5%. In 2016, the smaller crop is supposed to
Brazilshowsvigor
initsleadership
inglobaltobacco
exportsand
countsonreal
conditionsto
continueonthe
forefrontofthe
international
trade
Always
Brazilshould
continue
leadingglobal
tobaccoexports, in
lightof thequality
andintegrityof the
product,whilstmaking
strides inproduction
sustainability,where
theCountryalsosets
anexample.With
competitiveprices, the
Countrywillcontinue
ontheforefrontof the
sector’sbusinesses
IroSchünke,
presidentof
SindiTabaco
result into smaller sales, but the ex-
pectations for the future suggest
that the good conditions of the Bra-
zilian product will ensure that the
Country will keep its prominent po-
sition in the global trade.
Along with this information, the
Interstate Tobacco Industry Union
(SindiTabaco) mentions that there
was a decline in average export prices in 2015, dictated by market factors, as an adjust-
ment for keeping the Country competitive in light of the newexchange rate. With regard
to 2016, a survey conducted by PricewaterhouseCoopers (PwC) at the request of the
union, in late August, pointed to an expected reduction from6%to 10%, both in volume
and value. Besides the smaller crop, the initial situation favorable to the exchange rate
changed in the second half of the year, SindiTabaco officials noted.
The main destination for the Brazilian product is the European Union (43% in
2015), where the main ports of entry are located in Belgium, Holland and Germany.
The Far East absorbs 25% of the total exported by Brazil, where China (second big-
gest importer) and Indonesia occupy a prominent position. EU countries, as well as
North America (where the United States is the third biggest tobacco buyer from Bra-
zil), Africa and the Middle East purchased slightly bigger volumes, while Asian coun-
tries reduced their imports by a small margin. Small oscillations stem frombigger or
smaller stocks, say SindiTabaco officials.
The markets of Brazilian tobacco did not suffer substantial changes over the past
years,reachingapproximately100nations,andtheCountrycontinuesshippingupwards
of 85% of its production abroad, on average, accounting for almost 30% of all tobacco
traded in the world. This reality is bound to last for years to come, the sector’s entity be-
lieves, “with the attributes of the product and the advances in sustainability, well ahead
of other countries”. Nonetheless, an important factor consists in keeping prices competi-
tive,“atnormallevels,wherecostshavealreadybeenreducedandtheExchangerateplays
an important role”. Furthermore, entity sources add, supply must adjust to the real and
restrictedmarket needs, without disregarding the crops produced in other countries.
n
Inor Ag. Assmann
28
