tabaco brasileiro - Brazilian tobacco
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2020 Tobacco exports above average but dollar appreciation slashes revenue

Jan, 14, 2021 Posted by Ruth Hollard

Week 202102

Data from the Ministry of Economy indicate that in 2020, Brazil exported 514,287 tons of tobacco valued at US$1.638 billion. According to SINDITABACO (the interstate tobacco industry union), the numbers follow the expectations of the Deloitte Consultores survey, which forecast a 2-6% reduction in volume and a 15-20% reduction in dollars in comparison with 2019, when 549,000 tons were shipped valued at US$ 2.14 billion.

According to Iro Schünke, president of the entity, the 6.31% reduction in volume, and the 23.4% reduction in dollars were expected. “The reduction was expected, since in 2019 we had an increase of 7.6% in dollars and 19% in the volume of tobacco exported compared to the previous year (2018), mainly due to postponed shipments for logistical reasons. If we consider the last five years, the volume shipped in 2020 was slightly above the historical average of 494,000 tons. Concerning sales, the quality of the product, and the appreciation of the dollar was reflected in the reduction of the exported value”, evaluates the executive.

The main destination remains the European Union, the destination of 41% of the exported tobacco, followed by the Far East (24%), Africa / Middle East (11%), North America (9%), Latin America (9%) and Eastern Europe (6%). Among the countries, Belgium (US$ 414 million) remains the main importer of the product, followed by China (US$ 153 million) and the United States (US$ 125 million). Other customers include Indonesia (US$ 98 million), United Arab Emirates (US$ 74 million), Turkey (US$ 55 million), and Russia (US$ 54 million).

“Even in the face of an atypical year, with the adversities and logistical adaptations needed in the face of the pandemic, the tobacco sector has performed well in exports. The maintenance of the activities, following all the recommendations of the health authorities, was a correct decision and contributed to the achievement of these results ”, comments Schünke. Tobacco represented 0.8% of total Brazilian exports in 2020 with 4.1% of shipments from the southern region. In Rio Grande do Sul, a state that concentrates more than half of the Brazilian production, the product was responsible for 9.5% of total exports. In Brazilian agribusiness exports, tobacco occupies the eighth position. In the southern region, tobacco was mostly exported through the Port of Rio Grande, in Rio Grande do Sul (83.7%), followed by Santa Catarina (16%) and Paraná (0.3%). Of the total exported in dollars, 97.4% comes from the south.

The following chart shows the history of Brazilian tobacco exports since January 2017:

Brazilian Tobacco Exports (HS 2401) | Jan 2017 to Nov 2020 | WTMT

Source: DataLiner (To request a DataLiner demo click here)

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