Global tobacco production and operation in 2021
2023/10/28
Global tobacco production
Brazil
According to the statistics of the Tobacco Growers' Association of Brazil (Afubra), in the 2020-2021 planting season, the tobacco planting area in the southern region of Brazil was 4.1 million acres, a decrease of 5.9%, and the total tobacco output was 628,000 tons, a decrease of 0.7%, of which 573,000 tons of flue-cured tobacco, 49,000 tons of burley tobacco, and 6,000 tons of other tobacco leaves. Compared with the last planting season, the planting area and output of tobacco leaves in this planting season have declined, and the average price of tobacco leaves has increased by 19%, including 10.63 Reais/kg for flue-cured tobacco, 9.96 Reais/kg for burley tobacco and 7.14 Reais/kg for other types of tobacco. The increase in prices led to an increase in the income of tobacco growers, and the total income of Brazilian tobacco in the planting season was 6.62 billion Reais, an increase of 18.1%. The Brazilian Association of Tobacco Growers expects tobacco acreage and yields to decline by more than 9% in the next planting season as more growers implement crop diversification.
America
According to the statistics of the United States Department of Agriculture, the United States tobacco planting area in 1930 had reached a peak of 12.894 million acres, by the beginning of this century has been reduced to 2.625 million acres, and in the past 20 years has been reduced by about half. In 2021, the planting area of flue-cured tobacco in the United States was 911,000 acres, an increase of 21%, of which North Carolina accounted for 79.9%; The output of flue-cured tobacco was 142,000 tons, up 37.7% year-on-year; The output value of flue-cured tobacco was 630 million US dollars, up 40% year-on-year. Burley tobacco area of 249,000 acres, the same as the previous year, of which Kentucky planting area accounted for 85.3%; Burley tobacco production of 38,000 tons, an increase of 4.9%; Burley tobacco cultivation is worth $180 million. 2022 is expected to be the most expensive year ever for tobacco leaf cultivation in the United States, and many growers are considering quitting the tobacco industry, and tobacco leaf production may show a decline.
Zimbabwe
Tobacco agriculture is a pillar industry in Zimbabwe, with more than 140,000 tobacco growers and nearly a million people dependent on tobacco for their livelihoods. Although there are seven cigarette processing plants in Zimbabwe, the technical equipment is relatively backward, only about 2% of the tobacco leaves produced in Zimbabwe are used for domestic cigarette production, and the rest of the high-quality tobacco leaves are all exported, with an average annual foreign exchange income of about 600 million US dollars, and nearly 30% of Zimbabwe's foreign exchange income comes from tobacco exports. In the 2020-2021 planting season, the climate conditions were suitable during the growth of Zimbabwean tobacco leaves, basically no major drought and flood disasters, and the tobacco yield and quality were better than that of the previous planting season.
Multinational tobacco company
Two independent multinational tobacco companies, Universal and Picas International, account for slightly more than a third of the world's tobacco production (excluding China), with the rest procured by regional or local tobacco companies and tobacco product manufacturers.
Universal corporation
In fiscal year 2021 (ended March 31, 2021), the company served 185,000 direct contract growers, provided value-added services such as direct sourcing, agronomic support and specialized processing to selected customers, and leveraged digital technologies to improve supply chain efficiency and expand its plant ingredients business, in the face of the ongoing spread of the epidemic and declining tobacco demand. Strive to maintain the steady development of the company's business. Sales revenue of 1.98 billion US dollars, profit of 150 million US dollars, net profit of 90 million yuan, up 3.8%, 16.9%, 21.9% respectively. Among them, the annual shipment of tobacco leaf decreased year-on-year, tobacco sales revenue of 1.84 billion US dollars (accounting for 93% of the company's revenue), down 2.4%, profit of 170 million US dollars, an increase of 15.1%; The plant ingredients department achieved sales revenue of 140 million yuan, an increase of 517.9%, and realized losses and profits of 380,000 US dollars. In terms of revenue sources, the revenue from Philip Morris International, British American Tobacco and Imperial brands accounted for 23.2%, 17.1% and 10.6% of the company's revenue respectively. Revenue from the United States and Belgium accounted for 18.6% and 18.5%, respectively.
In recent years, in addition to efforts to stabilize tobacco operations, Universal has actively transformed into a comprehensive global agricultural supplier with more categories. First, it is committed to building a plant-based ingredients platform to provide corporate customers with a rich variety of plant ingredients to produce products for human and pet consumption. To that end, the company continues to make related acquisitions. In October 2020, the acquisition of Silva International, Inc., a natural specialty dehydrated vegetable, fruit and herbal processing company, for $164 million in cash and $5.9 million in additional working capital; In October 2021, Shank's Extracts, Inc., a specialty ingredients, condiments, and food company, was acquired. At the same time, the company will optimize the integration of the newly acquired company with the Fruit Smart company acquired in the last fiscal year, and play a synergistic effect. The second is to seize the industry development opportunity, its wholly-owned subsidiary AmeriNic produces liquid nicotine for the next generation of tobacco products, production in strict compliance with the United States Pharmacopeia standards. Its wholly owned subsidiary, Universal Laboratory Services, provides testing of protective agents and tobacco components for seeds, tobacco leaves and finished products, including e-cigarette liquids, including testing of compounds in finished tobacco products and mainstream smoke. In addition, the company has a tobacco waste recycling business.
Picsas International
In fiscal year 2021 (ending March 31, 2021), the company's performance continued to decline. From the company's three business segments, one is the North American tobacco, sales revenue of 160 million US dollars, profit of 8.7 million US dollars; Tobacco sales of 29,300 tons, a decrease of 0.68 million tons over the previous year, the average price of 5.62 US dollars/kg, an increase of 0.29 US dollars/kg over the previous year, the cost (tobacco procurement and transportation, storage and other costs) of 4.95 US dollars/kg, an increase of 0.19 US dollars/kg over the previous year. Second, tobacco leaves from other regions achieved sales revenue of 1.11 billion US dollars, a profit of 27.7 million US dollars, tobacco sales of 297,000 tons, a decrease of 98,000 tons from the previous year, the average price of 3.56 US dollars/kg, down 0.47 US dollars/kg from the previous year, the cost of 3.04 US dollars/kg, down 0.4 US dollars/kg from the previous year. Third, other products and services, sales revenue of $30 million, but because the company wrote off hemp products and industrial hemp inventory and withdrew from the industrial hemp business, the cost soared 266.7%, resulting in a loss of nearly $100 million.
In fiscal 2021, the company's top priority is to implement the court's bankruptcy reorganization plan. Debt restructuring through debt-for-equity swaps and extension of debt maturities has reduced debt by approximately $400 million and enhanced financial flexibility. With the support of middlemen, suppliers, customers and partners, we continue to transform our business and create more value. In addition to retaining the CEO, six new directors have been added to the seven-member board with diverse backgrounds and experience in finance and operations, agriculture and food industry, corporate integration, and tobacco industry.
Strategic alignment around diversification. Consolidating its e-liquid business and currently holding 65.3% of flavored liquid manufacturer and distributor Humble Juice Company through acquisitions and stock swaps in 2018 and 2020; Invest in Purilum, a joint venture company that provides flavor formulations and e-cigarette products. Picasus International has acquired a company engaged in cannabidiol (CBD) extraction and other industrial hemp applications in the United States and two companies licensed in Canada for the production and sale of medical and adult cannabis. With the reorganization plan in effect and the addition of new board members, the company's Board of Directors decided to exit the industrial hemp, CBD and Canadian legal cannabis businesses. They believe that exiting the cash-flow negative marijuana business can reduce expenses and focus on developing the more profitable tobacco and e-cigarette liquid business.
This article is from: Eastern Tobacco News
Brazil
According to the statistics of the Tobacco Growers' Association of Brazil (Afubra), in the 2020-2021 planting season, the tobacco planting area in the southern region of Brazil was 4.1 million acres, a decrease of 5.9%, and the total tobacco output was 628,000 tons, a decrease of 0.7%, of which 573,000 tons of flue-cured tobacco, 49,000 tons of burley tobacco, and 6,000 tons of other tobacco leaves. Compared with the last planting season, the planting area and output of tobacco leaves in this planting season have declined, and the average price of tobacco leaves has increased by 19%, including 10.63 Reais/kg for flue-cured tobacco, 9.96 Reais/kg for burley tobacco and 7.14 Reais/kg for other types of tobacco. The increase in prices led to an increase in the income of tobacco growers, and the total income of Brazilian tobacco in the planting season was 6.62 billion Reais, an increase of 18.1%. The Brazilian Association of Tobacco Growers expects tobacco acreage and yields to decline by more than 9% in the next planting season as more growers implement crop diversification.
America
According to the statistics of the United States Department of Agriculture, the United States tobacco planting area in 1930 had reached a peak of 12.894 million acres, by the beginning of this century has been reduced to 2.625 million acres, and in the past 20 years has been reduced by about half. In 2021, the planting area of flue-cured tobacco in the United States was 911,000 acres, an increase of 21%, of which North Carolina accounted for 79.9%; The output of flue-cured tobacco was 142,000 tons, up 37.7% year-on-year; The output value of flue-cured tobacco was 630 million US dollars, up 40% year-on-year. Burley tobacco area of 249,000 acres, the same as the previous year, of which Kentucky planting area accounted for 85.3%; Burley tobacco production of 38,000 tons, an increase of 4.9%; Burley tobacco cultivation is worth $180 million. 2022 is expected to be the most expensive year ever for tobacco leaf cultivation in the United States, and many growers are considering quitting the tobacco industry, and tobacco leaf production may show a decline.
Zimbabwe
Tobacco agriculture is a pillar industry in Zimbabwe, with more than 140,000 tobacco growers and nearly a million people dependent on tobacco for their livelihoods. Although there are seven cigarette processing plants in Zimbabwe, the technical equipment is relatively backward, only about 2% of the tobacco leaves produced in Zimbabwe are used for domestic cigarette production, and the rest of the high-quality tobacco leaves are all exported, with an average annual foreign exchange income of about 600 million US dollars, and nearly 30% of Zimbabwe's foreign exchange income comes from tobacco exports. In the 2020-2021 planting season, the climate conditions were suitable during the growth of Zimbabwean tobacco leaves, basically no major drought and flood disasters, and the tobacco yield and quality were better than that of the previous planting season.
Multinational tobacco company
Two independent multinational tobacco companies, Universal and Picas International, account for slightly more than a third of the world's tobacco production (excluding China), with the rest procured by regional or local tobacco companies and tobacco product manufacturers.
Universal corporation
In fiscal year 2021 (ended March 31, 2021), the company served 185,000 direct contract growers, provided value-added services such as direct sourcing, agronomic support and specialized processing to selected customers, and leveraged digital technologies to improve supply chain efficiency and expand its plant ingredients business, in the face of the ongoing spread of the epidemic and declining tobacco demand. Strive to maintain the steady development of the company's business. Sales revenue of 1.98 billion US dollars, profit of 150 million US dollars, net profit of 90 million yuan, up 3.8%, 16.9%, 21.9% respectively. Among them, the annual shipment of tobacco leaf decreased year-on-year, tobacco sales revenue of 1.84 billion US dollars (accounting for 93% of the company's revenue), down 2.4%, profit of 170 million US dollars, an increase of 15.1%; The plant ingredients department achieved sales revenue of 140 million yuan, an increase of 517.9%, and realized losses and profits of 380,000 US dollars. In terms of revenue sources, the revenue from Philip Morris International, British American Tobacco and Imperial brands accounted for 23.2%, 17.1% and 10.6% of the company's revenue respectively. Revenue from the United States and Belgium accounted for 18.6% and 18.5%, respectively.
In recent years, in addition to efforts to stabilize tobacco operations, Universal has actively transformed into a comprehensive global agricultural supplier with more categories. First, it is committed to building a plant-based ingredients platform to provide corporate customers with a rich variety of plant ingredients to produce products for human and pet consumption. To that end, the company continues to make related acquisitions. In October 2020, the acquisition of Silva International, Inc., a natural specialty dehydrated vegetable, fruit and herbal processing company, for $164 million in cash and $5.9 million in additional working capital; In October 2021, Shank's Extracts, Inc., a specialty ingredients, condiments, and food company, was acquired. At the same time, the company will optimize the integration of the newly acquired company with the Fruit Smart company acquired in the last fiscal year, and play a synergistic effect. The second is to seize the industry development opportunity, its wholly-owned subsidiary AmeriNic produces liquid nicotine for the next generation of tobacco products, production in strict compliance with the United States Pharmacopeia standards. Its wholly owned subsidiary, Universal Laboratory Services, provides testing of protective agents and tobacco components for seeds, tobacco leaves and finished products, including e-cigarette liquids, including testing of compounds in finished tobacco products and mainstream smoke. In addition, the company has a tobacco waste recycling business.
Picsas International
In fiscal year 2021 (ending March 31, 2021), the company's performance continued to decline. From the company's three business segments, one is the North American tobacco, sales revenue of 160 million US dollars, profit of 8.7 million US dollars; Tobacco sales of 29,300 tons, a decrease of 0.68 million tons over the previous year, the average price of 5.62 US dollars/kg, an increase of 0.29 US dollars/kg over the previous year, the cost (tobacco procurement and transportation, storage and other costs) of 4.95 US dollars/kg, an increase of 0.19 US dollars/kg over the previous year. Second, tobacco leaves from other regions achieved sales revenue of 1.11 billion US dollars, a profit of 27.7 million US dollars, tobacco sales of 297,000 tons, a decrease of 98,000 tons from the previous year, the average price of 3.56 US dollars/kg, down 0.47 US dollars/kg from the previous year, the cost of 3.04 US dollars/kg, down 0.4 US dollars/kg from the previous year. Third, other products and services, sales revenue of $30 million, but because the company wrote off hemp products and industrial hemp inventory and withdrew from the industrial hemp business, the cost soared 266.7%, resulting in a loss of nearly $100 million.
In fiscal 2021, the company's top priority is to implement the court's bankruptcy reorganization plan. Debt restructuring through debt-for-equity swaps and extension of debt maturities has reduced debt by approximately $400 million and enhanced financial flexibility. With the support of middlemen, suppliers, customers and partners, we continue to transform our business and create more value. In addition to retaining the CEO, six new directors have been added to the seven-member board with diverse backgrounds and experience in finance and operations, agriculture and food industry, corporate integration, and tobacco industry.
Strategic alignment around diversification. Consolidating its e-liquid business and currently holding 65.3% of flavored liquid manufacturer and distributor Humble Juice Company through acquisitions and stock swaps in 2018 and 2020; Invest in Purilum, a joint venture company that provides flavor formulations and e-cigarette products. Picasus International has acquired a company engaged in cannabidiol (CBD) extraction and other industrial hemp applications in the United States and two companies licensed in Canada for the production and sale of medical and adult cannabis. With the reorganization plan in effect and the addition of new board members, the company's Board of Directors decided to exit the industrial hemp, CBD and Canadian legal cannabis businesses. They believe that exiting the cash-flow negative marijuana business can reduce expenses and focus on developing the more profitable tobacco and e-cigarette liquid business.
This article is from: Eastern Tobacco News
