Tobacco Asia

Tobacco Asia 59 • Double your resource value • Use 100% expanded fine- cut for MYO and RYO • Untouchable product quality • Impex – pressure/vacuum technology • DIET - Dry Ice Expansion Technology AircoDIET has supplied more than 55 DIET plants worldwide, many of which have been turn-key. We continuously develop and refine the DIET process and our DIET plants have above 95% uptime with a dry yield better than 98.5% through the plant. www.aircodiet.com Over 100% tobacco expansion The bigger source of dissatisfaction, however, came during marketing. Growers in Rio Grande do Sul reported lower-than-expected prices, disagree- ments over leaf grading, devaluation of higher-quality grades, slow purchasing and uncertainty during negotiations. The problems became serious enough to trigger mo- bilizations across several municipalities, including a major protest in Santa Cruz do Sul. Afubra supported the growers and engaged with tobacco companies, SindiTab- aco, CADE (Administrative Council for Economic Defense), and other stakeholders. The growers' demands centered on greater transparency, fairer grading, better product valuation, and more predictable marketing conditions. The report rates grower satisfaction as dissatisfied and gives the outlook for the next season a neutral rating. Planted area should remain broadly stable in many regions, while weak conditions in other agricultural activities, particularly grains and dairy, con- tinue to support interest in tobacco production. For growers, however, production decisions increasingly require careful consid- eration of curing capacity, labor availability, production costs, weather, and market developments. Brazil also demonstrates why grower concerns cannot easily be separated from wider policy decisions. The country is introducing a new consumption-tax structure, with the Selective Tax scheduled to enter into force in 2027. At the same time, presi- dential runoff on October 25 could influence the balance between public-health priori- ties and the economic interests of tobacco-producing states and communities. The AGM material identifies producer organizations, municipalities, and parlia- mentarians as important parts of that discussion. Tobacco remains embedded in the agricultural and export economy of southern Brazil, giving growers and their represen- tatives a continuing economic argument in national policy debates. Climate has become a production risk If Brazil shows the importance of market conditions, reports from Africa demonstrate how severely weather can affect the basic economics of growing tobacco. Malawi provides one of the clearest examples. The 2026 season experienced both prolonged drought and excessive rainfall. Early drought reduced plant populations, while heavy rains later caused fertilizer leaching and waterlogging. The combination reduced yields and leaf weight, particularly for burley tobacco. Persistent rainfall also contributed to widespread bushy top and wildfire disease, while rainfall and insufficient barn capacity complicated harvesting and curing. Malawi's tobacco growers face a challenging season, with erratic rainfall, disease pressure, and reduced yields adding uncertainty to the crop's journey from field to market. Credit: Hiroo Yamagata, CC2.0.

• Cover