Issue link: https://read.dmtmag.com/i/1483036
Tobacco Asia 55 In the Dominican Republic, where some irregularities in the rainfall cycles were observed, the number of growers involved in the 2021/2022 crop was 3,552, around 140 people less than the year before. In terms of production volumes, 13.0 million kg were marketed, down from 12.6 million kg in the 2020/2021 season. While pricing was up more than 25%, reaching US$.30 per kg, produc- tion costs increased by close to 40% per hectare. It is worth mentioning that the Dominican Re- public relies heavily on its cigars business, which generates substantial amount of foreign currency – around US$1 billion. In the US, the total production for the 2022 season is 454 million pounds (or approximately 206 million kg), down from 217 million kg in 2021, with North Carolina and Kentucky accounting to nearly 80% of the country totals. Over the past five seasons, yields have suffered in the USA from abnormally wet growing seasons. American grow- ers have indicated that with the growing costs of production, that includes record prices for fertil- izers and labor, the tobacco crop is the most ex- pensive one ever to be grown. Notably, in burley estimated production for the season will be 27 mil- lion kg, down from 29 million kg the year before, with pricing around US$4.85 per kg. Alternatively, the number of dark-tobacco hectares in the US in- creased over 2021 by 15%. Among the key issues raised by all tobacco growers in the Americas Region is the skyrocket- ing costs of production. Although pricing is also generally increasing, it is often below the levels observed for inputs. For the sector to survive and supply the necessary quantities of tobacco leaf, companies will need to react with adequate pric- ing. This is the fundamental prerequisite for the long-term survival of growers. As a result, ITGA's next Annual General Meeting, which will be held in Castelo Branco, Portugal between October 26- 28, is themed the Sector's Conversation, gathering growers and main industry stakeholders. This will be the only such event in 2022 with representa- tives from all major tobacco growing countries and companies in the world. ITGA members in the Dominican Republic in August 2022.