DOFER Tobacco Processing Corp., the tobacco production member of the Continental Tobacco Group, has further increased its contracted basic purchase price for tobacco, strengthening its domestic competitiveness and commitment to supporting Hungarian tobacco farmers and tobacco culture. As part of the price increase, the company has increased the price of Virginia tobacco, which is grown on a significantly larger area, by 19% and Burley tobacco by 20%, which, together with last year’s 50% price increase, represents a total price increase of 69-70% over two years.

The present price increase by DOFER Tobacco Processing Corp. is the next step after last year’s 50% increase: the company, which is responsible for about one third of the domestic tobacco production, is taking the initiative to offset the global increase in cost levels in recent years and the economic challenges, thus helping to maintain the domestic tobacco culture and the prosperity of tobacco farmers.

Unique in the domestic tobacco market, the Continental Tobacco Group’s operations are vertically integrated, covering the full spectrum of tobacco related activities, from tobacco cultivation, through tobacco product manufacturing, to sales. The Group is therefore committed to supporting the domestic tobacco growing sector, which is in line with the increase in the tobacco purchase price: it is expected to increase the amount of tobacco grown on the contracted tobacco areas, thus contributing to the stimulation of the local economy and the maintenance of rural employment.

The tobacco growing process

The tobacco growing season starts at the beginning of the year, with the contracting of the growing areas. This is followed by the planting period, typically from March to the end of May, and from June onwards the field work, tobacco plant care, hoeing, crop protection and irrigation begin. Harvesting work is usually completed in September-October, depending on the size of the farms and labour capacity.

Csaba Füzi, CEO of Continental Tobacco Corp. pointed out that it may sound unbelievable, but the Hungarian tobacco growing culture has a long history on a global level, too, and Hungary was one of the leading exporting countries before Trianon. He added, it is still a key source of employment, so the company feels it is particularly important to support and encourage growers to continue growing. In this spirit, Continental significantly increased the basic tobacco purchase price last year and again this year, above inflation, and organised a producer open day at the beginning of the year. In addition to this, the company also ensures the subsequent processing and, most importantly, the final sale of the tobacco produced in the contracted tobacco areas at the Sátoraljaújhely tobacco factory.