Brazilian Tobacco Production
CORESTA Agro-Phyto 2017 Iro Schünke – President Interstate Tobacco Industry Union
23 October – Santa Cruz do Sul/Rio Grande do Sul - Brazil
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•Regulatory Issues: FCTC - Framework Convention on Tobacco Control •Sustainability: Social and Environmental Responsibility •Visibility of the Sector: economic and social importance
main focuses
Interstate territorial base
Represents and defend the common interests of the tobacco industry
Comprises 15 associated companies
THE SINDITABACO
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Source: Afubra / ITGA (tons)
TOBACCO IN THE WORLD
Producers Exporters
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Pacific
ocean
Bolívia
Peru
Paraguay
Argentina
Uruguay
Santa Cruz do Sul
PARANA
SANTA CATARINA
RIO GRANDE DO SUL
Ch
ile
BAHIA SERGIPE
ALAGOAS
TOBACCO PRODUCTION IN BRAZIL - STATES
PRODUCTION SHARE (2016/2017 CROP)
Source: PriceWaterhouseCoopers
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Tobacco Growing
areas
566 growing municipalities
150 thousand growers
600 thousand people in the rural areas
299 thousand hectares planted
686 thousand tons (*)
R$ 6.09 billions income to growers
40 thousand direct jobs at the industry
R$ 13.9 billions in taxes annually
(*) + 14 thousand tons (Northeast) = 700 thousand tons (Brazil) Source: Afubra and PriceWaterhouseCoopers
BRAZIL’S SOUTHERN PRODUCTION REGION – 2016/2017 CROP
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MAIN TOBACCO EXPORTING COUNTRIES (THOUSAND TONS)
0
100
200
300
400
500
600
Brazil India Zimbabwe Malawi U.S.A. China Turkey Indonesia
Source: I.T.G.A. / Afubra
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Source: MDIC/Secex
BRAZILIAN TOBACCO MARKETS – YEAR 2016 (US$)
North America
12%
Eastern Europe
7%
Far East
28%
Latin America
6%
Africa/ Middle East
6%
European Union Europe Others
41%
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483 thousand tons
US$ 2.12 billion
90% of the tobacco produced in Brazil is shipped abroad.
90 countries Main importers:
Belgium China
United States Russian
Indonesia Netherlands
Germany
BRAZILIAN TOBACCO MARKETS – YEAR 2016
Total Exports
Source: MDIC/Secex
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High volumes and styles
High quality
Regular supply
High level in processing, services and ISO
Integrated Production System
Sustainability in the production chain
SUCCESSFUL TRAJECTORY IN THE GLOBAL MARKET
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PROFILE OF THE FARM (AVERAGE AREA PER FARM = 14.2 HECTARES)
Source: Afubra
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Existing for almost 100 years.
Integration between tobacco companies and growers (by contract).
Base of tobacco crop building in Brazil.
Model to other crops and countries.
INTEGRATED PRODUCTION SYSTEM
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Benefits to the companies - Adequate volume planning - Product quality and integrity - Supplying guarantee
Benefits to the growers - Guarantee of selling the contracted crop - Technical assistance - Financial assistance - Free of charge tobacco transportation
INTEGRATED PRODUCTION SYSTEM
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Sustainability
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Social classes
Brazil stratification levels
South Brazil Tobacco growers stratification
(twice over Brazilian level)
(twice over Brazilian level)
80,4 of Brazilian Tobacco
Growers are on the A and B
classes
(more than 4x Brazilian level)
of Brazilian people are on the C and D classes
Source: UFRGS (2016)
SOCIOECONOMIC GROWER’S LEVEL
Source: Federal University of Rio Grande do Sul (2016)
%
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Source: ESALQ – Higher School of Agriculture “Luiz de Queiroz”/USP – secondary data SINDAG and IBGE, 2012
Brazilian tobacco is the commercial crop that uses the least amount of pesticides, according to surveys conducted by qualified entities, based on official data sources.
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Required protection • Use PPE (Personal Protective Equipment) in all related operations of handling and application of
pesticides. • PPEs are available by companies to growers, at purchase prices.
PESTICIDES APPLICATION
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Tobacco Harvesting:
• Provision of standard clothing at purchase price
• Guidance Folder for Growers
• Media Campaign on Radios
• Technicians Training Program (Dr. Jodel Alves/UNISC/RS)
It is an intoxication caused by the absorption - through the skin - of the nicotine dissolved by moisture, when handling green leaves of tobacco wet with rain or dew.
Pattern
GTS – GREEN TOBACCO SICKNESS
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HARVEST CLOTHING
• Recommended from study contracted by SindiTabaco with
Professor Luiz Carlos Castanheira (UNICAMP / SP). • Lightweight and comfortable material. • It has 98% efficiency: based on tests conducted and approved
according to international standards (Dr. Flávio Zambroni, Planitox, Campinas / SP).
Article: "Evaluation of standard dressing during tobacco leaf collection and implications for the prevention of Green Tobacco Sickness (GTS)“, was published in December 2016 issue of the Brazilian Journal of Occupational Medicine (RBMT).
GTS – GREEN TOBACCO SICKNESS
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- Started pioneering by sector in 1998.
- The buying and selling contract signed between the companies and the farmers requires the grower to present the certificate of school enrolment and school attendance of their children.
- Partnership with the ILO - training of all tobacco technicians in 2012.
- The 2010 Official Census, indicated that tobacco had the highest child labor reduction rate (55%).
- Considered a success case in the fight against child labor, by the ILO and CNI (National Industry Confederation).
- Study of 2014 by American NGO Human Rights, referred Brazil as example of sectorial action to control child labor.
- Growing Up Right Institute.
FIGHTING CHILD LABOR
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Awareness cycles on grower health and safety and protection of children and adolescents
Seminars: clarify and raise awareness among growers, through orientation videos, lectures and theater.
From 2009 to 2017: • 55 events in several municipalities
in Southern Region
• 23,000 participants
GROWERS AWARENESS
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Media campaigns
Television, radio and press announcements in all main tobacco growing regions
Tobacco planting and harvesting period: July through December
83 radio stations 3.840 announcements / 30-second spots
12 newspapers 24 published announcements
12 TV Stations 418 broadcasts / 30-second VTs
GROWERS AWARENESS
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All firewood used for tobacco curing is from sustainable sources.
Represents 27% of forest cover on tobacco growing farms.
Since 1978, the tobacco
growers have been
encouraged through
reforestation campaigns.
ENVIRONMENTAL PROTECTION
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Source: Sinditabaco – 2016
Cropping Systems (%)
Conventional Minimum tillage + No tillage
TOBACCO SOIL MANAGEMENT - BRAZIL
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30 years stimulation to the production of alternative crops
Starting in 2014 - strengthening with new partnerships
Incentive for alternative crops (maize, beans and soy)
Use of pasture for animal feed
Protection of soil against erosion and interruption the cycle of pest and weed
proliferation
Results after tobacco – 2016/17 Crop
Area (ha) Value (R$)
190,000 600 million
PROGRAM OF MAIZE, BEANS AND PASTURES AFTER TOBACCO CROP (RS, SC AND PR)
Partnerships: - Government of the states - Afubra (Tobacco Growers Association) - Farmers Federations
Source: SindiTabaco
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Publication of Technical Norms - 2014
Official program of the Brazilian government, established by the Ministry of Agriculture, Livestock and Supply (MAPA), whose official seal certifies that the production was obtained in a safe and sustainable way, with reduced environmental impact, greater social responsibility and guarantee of traceability.
INTEGRATED PRODUCTION PROGRAM BY USE OF BEST PRACTICES
Participants:
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PRODUCTION
OF TOBACCO
• quality
• integrity
• sustainability
FRAMEWORK
CONVENTION (FCTC)
• restrictive
measures
• smuggling
• Conference of the
Parties of WHO (COPs)
COMMUNICATION
• Social and
economic
importance of the
productive chain
MAIN CHALLENGES
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www.sinditabaco.com.br [email protected]
Galvão Costa Street, 415 - Santa Cruz do Sul - RS – Brazil - Phone: 55 51 3713 1777
Thank you
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