ITGA Crop Monitor: October 2019_nº5
The year 2019 is finally coming to an end and many growers are already looking at the year that lies ahead. The present season had several difficulties affecting growers in various parts of the globe. In fact, the year has been ripe with events that further difficult the grower’s efforts to provide a good quality crop, from weather occurrences to political tensions. Growers might not look back to 2019 very fondly. However, the farmers are sure to look at the last quarter of the year, with high expectations as to first capture what may take place in 2020.
In the U.S., the trade war with China has significantly reduced tobacco leaf exports. According to the latest figures, there has been a 35.6% reduction on the value of the tobacco leaf exported, which represents close to US$ 300 million in lost revenue for American tobacco growers. However, farmers can look with hope at the truce agreed by the two nations and the promise by the eastern dragon to buy up to US$ 50 billion of U.S. farm products of which tobacco will hopefully be a part of it. Ultimately, tobacco products are one of the most important revenue streams of the Chinese Government (US$ 170 Billion in tax revenue collected from China National Tobacco Corporation), representing around 5% of the total Government revenue.