DOFER Tobacco Processing Corp., the member of the Continental Tobacco Group responsible for tobacco production and processing, has successfully completed its purchase of Virginia tobacco: the company bought a total of 1,315 tonnes, an increase of about 49 percent compared to last season. DOFER also recorded a significant increase of 40 percent in the purchase price, with an average price of HUF 1 509/kg. The increase in both indicators was largely due to a 50 percent increase in the group’s base buying price in the spring.
This year, the Continental Tobacco Group’s purchase of Virginia tobaccos for artificial drying started with positive signs: the area under cultivation was 11 percent larger than last year, at 918 hectares, mostly in the Nyírség region, which also resulted in a 7 percent increase in the contracted volume compared to 2022, to 1,019 tonnes. In addition, the weather proved to be significantly more favourable for production.
The results of the harvesting and buying-in season have accordingly significantly exceeded the 2022 figures. While the volume purchased increased by 49 percent, the unit price increased by 40 percent: DOFER Tobacco Processing Corp. DOFER bought 1 315 tonnes at a unit price of HUF 1 509/kg. According to the company’s experts, the tobacco tissue is slightly less rich than expected, but the quality of the tobacco is ideal, so that the harvest can be considered a clear success.
The family-owned Continental Tobacco Group, which owns the more than 130-year-old tobacco factory in Sátoraljaújhely, is vertically integrated, covering the entire spectrum of tobacco related activities, from tobacco cultivation, through the production of tobacco products, to sales, in a unique way in the Hungarian tobacco market. DOFER Tobacco Processing Corp. is the group member responsible for tobacco cultivation and purchases one third of the Hungarian tobacco production.
The purchasing period is not over yet: the purchase of Burley tobacco, which is naturally dried and grown on a much smaller area than Virginia, is expected to be completed in January.
Csaba Füzi, CEO of Continental Tobacco Plc., which owns the tobacco factory in Sátoraljaújhely, said that this year they have successfully compensated for the poorer harvest in 2022, which will be a challenging year in many respects. In addition to better weather conditions, the 50 percent increase in the tobacco buy-base price at the beginning of the year also played a significant role. He also highlighted the active and efficient work of the NAV, which has been effective in minimising the sale of illegal farm tobacco.