CROP REPORT

/CROP REPORT
CROP REPORT2020-01-08T18:52:23+00:00

Argentina

100% of the FCV production was received and purchased by the companies. Approximately 90% is already processed and the remaining should be completed by the end of June.

Despite the good weather conditions in 2019, the FCV production lost over 2M kg due to late and severe hail storms in the province of Salta resulting in a total country production of 65,7M kg of FCV. It was a good year in terms of FCV quality with orange to intense orange colour and very good maturity level.

Burley production is affected by irregular rainfalls in 2019. In the Province of Tucuman, the production is suffered due to heavy rains that affected the lower land and it was calculated that 2 Million kg were lost, the total output of the Province in conjunction with Catamarca is of 5 million kg. In the province of Misiones, near the border with Brazil, the production reached 30M kg of good quality tobaccos.

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Brazil

FCV crop size has reached to 605 million kilos in 2019. Overall quality of tobaccos can be classified as average to good in quality, color and maturity. The adjust in the green prices paid to farmers combine with the devaluation of the local currency resulted in FOB prices similar to last year and in some cases with a small discount FCV crop size is projected as 585 million for 2020.

In Rio Grande do Sul, an estimated 20% of the crop has been harvested. Due to excessive rainfalls in the months of October and early November, accompanied with reports of high winds and hail storms, tobacco has been showing indications of premature yellowing and yield losses.

In Santa Catarina, an estimated 24% of the crop has been harvested. There has been average rainfall, with good indications of crop development.

In Parana, an estimated 12% of the crop has been harvested. There has been average rainfall, with good indications of crop development. Burley crop size of 2020 is estimated as 55 million kilos which was 65 million kilos in 2019. Crop is highly affected from the irregular rainfalls in Rio Grande do Sul.

USA

FCV transplanting is completed in Florida, Georgia and South Carolina. The Eastern Belt of North Carolina is nearing completion, while farmers in the Middle and Old Belts are approximately 75 percent completed. In 2019, 160,000 acres are planted with FCV seeds which are estimated to produce 159 million kg FCV tobacco.
Planted area was 200,000 acres with the production of 149 million kg FCV in 2018. This year transplanted tobacco has a good stand and is showing favourable signs.

USA Burley greenhouse-growing season has been good and transplants in the greenhouse are at or near maturity to transplant as of May 2019. 55,000 acres are transplanted with USA Burley and estimated production is 44.9 million kg.

US Dark Fire and Dark Air Cured transplanting are well underway across the dark growing districts in 2019. 13,125 acres area is planted with DFC seeds and estimated DFC crop size is 19 million kg. DAC plantation area is 5,090 acres and estimated crop size is 5,9 million kg for 2019.

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China

FCV production has reached to 1,750 million in 2019. The previous months saw excessive rainfalls over growing regions which resulted in less bodied and mature tobacco being delivered for marketing.

Burley tobacco crop size is calculated as 5 million kilos in 2019. Quality has been reported as average which is similar to the 2018 crop year. Domestic market is consuming the majority of the stocks.

China export quota will remain the same which is 20%. State Tobacco Monopoly Administration (STMA) is continually emphasizing to CNTC to reduce nicotine levels in the upcoming season. Moreover, STMA is encouraging CNTC to adopt ecofriendly curing methods.

China still has good amount of old domestic stocks and the industry is continually releasing these stocks for the sale in the export market.

India

The Tobacco Board has authorized a Mysore crop size of 100 million kilos for 2019. However, crop production is calculated as 93.5 million kilos due to insufficient rain falls. Average auction price is Rs. 139.94 per kilo.

A grade spread consisting of 16 million kilos of high, 47.5 million kilos of medium and 30 million kilos of low-quality tobacco. Average price of high-quality grades has gone up by 7.45% over last year. This year, price of high-quality grades is RS 172.89 per kg which was RS 160.90 per kg in 2018.

FCV Traditional market is concluded in the middle of September 2019. Total crop size has reached to 85 million kilos. Average auction price is USD 1.63 per kg which was USD 1.81 per kg in 2018. Reason of the price decrease is the high percentage of lower quality tobacco. FCV Traditional crop of 2019 is consisting 51% percent of low-quality tobacco.

FCV NLS crop size is calculated as 38.4 million kilos in 2019 which includes 18 million kilos of high, 14.4 million kilos of medium and 6 million kilos of low-quality tobacco. The crop quality was characterized as average to good, with high competition experienced across the market. Average price is USD 2.02 per kg in auction floors. Indian Tobacco board has authorized a 2020 crop size of 46 million kilos. An estimated 17,000 hectares have been transplanted for 2020.

Air Cured Vinukonda Burley crop size of 2019 is calculated as 25 million kilos with an average auction price of USD 1.16. Overall quality of tobaccos can be classified as fair to average in quality, color and maturity.
17,000 hectares have been transplanted for 2020 and expected crop size is 30 million kilos. HDBRG Burley crop production is reached to 28 million kilos in 2019. An average auction price is USD 0.85 per kg. The 2020 HDBRG crop transplanting is in progress and expected crop size is 35 million kilos for 2020.

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Indonesia

Estimations show that all type of tobacco production (FCV, Suncured, DFC, Besuki Na oogst) will continue to increase more than 200 million kg in Indonesia.

FCV Lombok

FCV Lombok crop size estimation is increased to 35,000 tons for 2019. Previous year total production was 33,500 tons. Tobacco production is enlarged in Indonesia due to better tobacco land utilization.

FCV Bojonegoro

From the target tobacco cultivation area of about 9 thousand hectares, only 8600 hectares were planted. The total estimation of the crop in Bojonegoro this year achieved a quantity of 10,000 tons. They are divided into some tobacco type as below:

  • Virginia VO: 8.000 tons
  • Local ( Jawa ) & Ram : 2.000 tons
  • The tobacco price is also increasing from IDR 27.000 to IDR 35.000/kg

Cigar Leaf & Dark Air Cured

Buying plan of all cigar operators in Jember that reported to Government as 5 million kg, while production is estimated around 4.2 million kg. Although there is an increment in estimation because of good seasons, there is still a deficit due to lack of supply of provisioning facilities and prices of some production inputs also cannot be reached by farmers. Therefore, some farmers switch to other commodities that caused the price is still high. Last year top grade cigar leaf buying prices from farmers per kg is US$7 – US$9 while now it has reached US$ 12 – US$15 /Kg.

TBN

TBN was produced by three suppliers this year. PTPN, from 250 Ha planted area produced 525 tons TTN, from 150 Ha planted area estimated can produce 315 tons TR, they can produce TBN 420 tons this year. So total production of TBN this year 1.260 tons.

Besuki

Besuki Na Oogst, from 1200 Ha planted the production this year can achieve 1.560 tons. Besuki Nota, total planted area 2500 ha and estimation crop 3.750 tons.

JATIM, Madura & Kasturi

Tobacco production in East Java this year is good, it reaches 120,000 tons from the plantation separated from some areas such as Madura ( 32.000 ha ), Probolinggo ( 11.000 ha ), Jombang and some others areas This number divided for some tobacco types such as Jatim VO, Madura, Paiton and Kasturi.

DFC & Other Central Java

Due to lack of rainwater supply, the tobacco growth in Central Java is less than optimal. This year total production of DFC, Janturan, VO and fine cut tobacco will decrease by %25.

It is estimated that DFC type production from some part of Central Java such as Temanggung, Boyolali, and Solo will achieve 15,000 tons this year, but the quality is better than last year, while the price is increased by an average of %10.

Farmers feel very grateful because the tobacco price is very high this year and this has become a distinct advantage for tobacco farmers. So it is expected that the price will continue to rise along with the increasing quality of tobacco.

Malawi

Burley crop is concluded in September and crop size is calculated as 138.9 million kilos in 2019.

Average price is USD 1.31 per kg which was USD 1.56 per kg in 2018. High percentage of lower quality grades caused a decrease in price.

Approximately 67% of the national crop was sold on contract and the remaining 33% is on Auction.

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Oriental tobacco leaf

Oriental Tobacco

Oriental tobacco crop size is calculated as 185.5 million kg in whole over the world in 2018.

Production of oriental tobacco is reached 60.5 million kg in Turkey which is generating 32% of global production in 2018. Previous year production was 51 million kg. Instability in Turkish Liras may lead to competitive prices as major companies already sign their purchase contracts with farmers according to local currency, for 2019 crop.

Greece is thought to have grown about 22 million kg of classical Oriental tobacco in 2018, made up of about 13.7 million kg of Basma and about 8.3 million kg of Katerini.

In Macedonia, oriental tobacco production was decreased to 21 million kg in 2018, which was 28 million kg in 2017.
Oriental tobacco production is still declining in Bulgaria. Crop size is calculated as 9 million kg in 2018.

Zimbabwe

FCV production has reached to 259 million kilos in 2019.

As a result of high inflation rate and devaluation of local currency, prices are lower than the previous year. Average auction price is USD 2.03 per kg which was USD 2.92 in 2018.

YTD, 139 708 growers have registered with TIMB for 2020 crop season. This is 15% lower than 2019 season. Due to ongoing serious drought conditions and high temperatures over the Mashonaland growing regions, crop quality is expected to be lower than 2019.

Moreover, due to high inflation and economic crises in Zimbabwe, estimated crop size of 2020 is expected to be 25% lower than the previous year.

Tanzania

FCV crop is calculated as 70 million kilos in 2019. Overall quality of tobaccos can be classified as average to good in quality, color and maturity. International traders have already purchased most of the stock.

FCV crop is expected to decrease to 41 million kilos in 2020. One of the largest tobacco producers in Tanzania decided to stop their operations in 2020 and this decision has a major effect on this decrease. DFC crop size is calculated as 2 million kilos in Tanzania.

Due to significant decrease on Zimbabwe crop, manufacturers may shift their part of purchases to Tanzanian tobacco which has similar characteristic of Zimbabwean tobacco.

Bangladesh

FCV crop size is calculated as 76.7 million kilos in 2019. Crop was characterized by heavy competition amongst manufacturers for domestic purpose which resulted in a green price increase of an estimated 5%.

Burley crop size has reached to 20.6 million kilos in 2019. Rangpur crop quality has significantly improved due to favorable growing conditions.

Market resources show that there has been a green price increase of 4% in Manikganj and 3% in Rangpur. 2020 crop season preparations are underway.