Tobacco Asia

54 tobaccoasia LEAF NEWS 烟叶新闻 ITGA Elects New President The International Tobacco Growers' Association (ITGA) elected Marcílio Drescher, president of Brazil's Afubra, as its new president, succeeding José Javier Aranda after his four- year term. ITGA members confirmed Drescher during the association's closed session on September 17 at Messe Dortmund, Germany, held alongside InterTabac and InterSup- ply. Representatives from major tobacco-producing regions attended the 2026 Annual General Meeting, including Argen- tina, Brazil, Bulgaria, Colombia, India, Malawi, North Macedo- nia, the Philippines, the United States, Zambia and Zimbabwe. Drescher said his priorities for the new mandate include strengthening growers' representation in international discus- sions, improving understanding of growers' economic condi- tions, and supporting the long-term viability of tobacco-grow- ing communities. "ITGA has built a strong legacy over 42 years, and the progress achieved under José Javier Aranda's leadership gives us a solid foundation for the next chapter," Drescher said. "We now have an opportunity to build on this momentum by strengthening the voice of growers, improving their economic viability, and ensuring the long-term sustainability of tobacco- growing communities around the world." The AGM addressed developments affecting tobacco growers and producer organizations, including global leaf production and market conditions, grower economic sustainability and living income, regulatory developments, traceability, environmental steward- ship and due diligence, changing nicotine-consumption trends, and regional advocacy coordination. ITGA said its activities during 2026 included stronger engagement with members and partners, expanded regional coordination, cooperation with InterTabac and InterSupply, an Americas Regional Meeting, and continued activity in Africa. The association also conducted living-income research involving more than 700 growers. Members also recognized Aranda's contribution during his four-year presidency. ITGA said his term included renewed advocacy efforts, stronger coordination in the Americas, participation in international regulatory processes, support for work related to the EU Tobacco Products Directive, and continued engagement with African growers. Aranda said growers' organizations need to maintain effective advocacy at the national level. "Each of our members has a responsibility to drive effective advocacy in their own country — advocacy that helps improve growers' incomes and ensures governments better understand the realities and challenges of tobacco growing," he said. Universal Doubles Down on Tobacco Universal is maintaining its focus on tobacco while expanding its plant-based ingredients business, with chairman, president and c.e.o. Preston Wigner outlining the company's strategy at a recent Sidoti conference. Tobacco remains the foundation of Universal's business, generating cash flow through its relationships with growers, agronomy operations, processing facilities, and global logistics network. The company operates in more than 30 countries across five continents. Wigner described Universal's role as connecting growers with tobacco-product manufacturers by sourcing, processing, and delivering leaf to meet specific customer requirements. The company works directly with contracted growers and supports production through its agronomy teams, which conducted nearly 2 million field visits during the latest fiscal year. "Tobacco is not a commodity," Wigner said, pointing to differences between tobacco grown in different countries. He said Universal works with customers to source the qualities, styles, and volumes required for their products. Universal also participates in processing for next-genera- tion tobacco products, including through partner facilities that provide liquid nicotine processing. The company saw oversup- ply in several tobacco markets. Its fiscal 2027 first-quarter results showed lower tobacco sales volumes and prices, with oversupply particularly affecting flue-cured and burley tobacco. Universal expects tobacco shipments to be weighted toward the second half of the fiscal year. Wigner said Universal prefers a market with slight oversupply because it gives customers access to additional tobacco for spot requirements. The company does not buy tobacco speculatively and instead bases grower contracts on expected customer requirements. Universal is also building its ingredients business, which it began developing in 2018. The company has acquired FruitSmart, Silva International, and Shank's Extracts, creating a platform supplying fruit juices, purees, essences, vegetables, herbs, spices, flavors, extracts, and nutraceuticals. The company has invested more than US$30 million in expanding its extracts and flavors operation, adding extract production, bulk blending, and aseptic packaging capabilities. Universal Ingredients serves food, beverage, animal nutrition, food service, retail, and specialty ingredient markets. Universal's tobacco business remains substantially larger. In the first quarter of fiscal 2027, tobacco operations generated US$437.1 million in sales, compared with US$86.7 million for ingredients. Tobacco operating income reached US$3.5 million, while ingredients recorded an operating loss of US$0.7 million. India Opens Auctions to Excess Tobacco India has authorized the sale of excess flue-cured virginia (FCV) tobacco from Andhra Pradesh through Tobacco Board auction platforms, opening a regulated route for surplus production from the 2025-26 crop season. Marcílio Drescher (right) takes the reins from José Aranda, carrying forward the momentum built under his predecessor's leadership. Credit: ITGA

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