Negotiations between South American tobacco farmers and tobacco companies are at an impasse, and producers' cost expectations have not been met.

Negotiations between South American tobacco farmers and tobacco companies are at an impasse, and producers' cost expectations have not been met.

According to a report by the media jornaldocomercio on January 16, tobacco producers in southern South America have begun discussions on tobacco prices for the 2023/2024 year.

In a series of meetings at the headquarters of the Southern Association (Afubra) in Cruz Sur (RS), Brazil, an agreement was reached with Japan Tobacco International (JTI) to set a tobacco price adjustment of 8%.

However, tobacco production is represented by the Association of the South, the United Agricultural Federation (Farsul), the Agricultural Federations (Faesc and Faep), and the Federation of Peasant Workers of Rio Grande do Sul, Santa Catarina and Paraná (Fetag, Fetaesc and Fetaep). The investor group and six other companies failed to agree on a price. According to the Southern Association, they failed to meet producers' expectations for a five percentage point increase in changes in production costs.

Marcilio Drescher, president of the Southern Association, informed that next week, on January 25, 2024, they are expected to hold a new round of negotiations with those companies that have failed to reach an agreement with producers. This highlights the divisions within Brazil's tobacco industry over prices, with negotiations between producers and companies continuing.
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