Issue link: https://read.dmtmag.com/i/566084
tobaccoasia 65 InterSupply 18 –20 September 2015 Dortmund, Booth 3B.A76 TABEXPO 20–23 October 2015 London, Booth E70 REMAIN SUCCESSFUL in a changing market environment www.hoffmann.ch According to Sinditabaco, the slight reduction in world cigarettes consump- tion in 2013 also did not help to improve the sales results in 2014. Fewer clients combined with competitor countries, which started selling more and good quality tobacco exacerbated the situa- tion. Especially when it came to African countries, where great tobacco had been produced for better prices. "Zimbabwe has significantly in- creased its production, reaching lev- els similar to those of the early 2000s, when it was a major competitor of Bra- zil in high quality tobacco. Our costs are higher, especially considering the labor expenses. It is important to mention that beyond producing high quality tobacco, we are advanced regarding to traceability and sustainability, with good social re- sponsibility practices and environmental preservation," explained Schünke. In addition, high labor, energy, and raw material costs are also partly respon- sible. It is important to consider the polit- ical and economic crisis that also directly impacts the currency exchange. The real's oscillations in the first quarter of 2014 didn't help business. For this reason, the Brazilian tobacco industry is internally debating ways to maintain the favorable transactions with its actual buyers. For instance, Europe is the main market for Brazilian tobacco. It represents 42% of sales and it is followed by Far East (28%), North America (10%), Eastern Europe (8%), Africa/Middle East, and Latin America (both 6%). According to a survey conducted by PriceWaterhouseCoopers, the export trends will not register significant chang- es for 2015. Evolution of exports - south of Brazil 2014