The tobacco
productionmodel
spread across Brazil
and the world
In 1918, when the British American Tobacco (BAT) company started an unprece-
dentedpartnershipwithhundreds of farmers inSouthBrazil, it hadno idea that itwas
the beginning of one of the most successful models in the global agribusiness trade.
The idea did not only thrive but was adopted by other companies and supply chains
at homeandabroad. Fromaprivate experience, this initiative turned into sectoral pol-
icy, considered the responsible for transforming Brazilian tobacco into the best in the
world, thus consolidating theCountryas the leadingglobal exporter.
Dimar Frozza, leaf director at Souza Cruz, subsidiary of BAT in Brazil, has it that it
was the union of several factors that made the idea thrive. “Family farming on small
holdings might have been one of the major factors. Other circumstances include the
climate and ideal soil for the cultivation of tobacco, and the knowledge of the Europe-
an descendants about the cultivation of this crop”, he explains. “Taking this as the ba-
sis, the relation of transparency between the company and the people of the country-
sideplayeda fundamental role. Nowit is a systemthat benefitsbothparties”.
The ITPS relies exclusively on the confidence between the farmer and the indus-
try. In the tobacco supply chain, in practical terms, it functions as follows: the farm-
IntegratedTobaccoProductionSystem(ITPS)
was the starting point for Brazilian tobacco
to consolidate as the best in theworld
er undertakes to produce a certain volume of to-
bacco for a specified company, with guaranteed
purchase. Based on this premise, the contracting
company finances the inputs and the seedlings
and offers technical assistance to the farmer, who,
at the moment the crop is delivered, has the cost
of the inputs discounted from his payment. This
makes it possible for the growers to plan their life
on the farm, while the industry manages to plan
production volumes needed to meet the orders
of the final clients, inaccordancewith the required
amount andqualityof the rawmaterial.
As it was introduced by more companies, the
bid consolidated as one of the major inducers of
rural succession in the tobacco growing farms.
With guaranteed income, in many cases, young
people decide to stay in the rural setting. That is to
say, each generation is concerned with leaving a
better farmto thenext generation.
Joining
efforts
Divulgação
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