10 | JUN . 2020

Releases

Tobacco sector has stood out in the fight against child labor for more than 20 years

June 2020 – While many sectors are still in their fledgling stage in the fight against child labor, the tobacco sector has been facing the problem for more than two decades. The matter gains momentum this Friday, June 12 – World Day Against Child Labor, sanctioned by the International Labor Organization (ILO), in 2002. In the tobacco sector, nearly four years before the day of its creation, there had already been consolidated work focused on the prevention of child labor in tobacco farming. On 25 November 1998, the “Future Is Now” Program brought together representative entities from the industries and tobacco farmers for the purpose of formalizing a pact intended to fight child labor, an initiative considered to be the initial milestone for a series of actions that followed. According to SindiTabaco president Iro Schünke, tobacco is many years ahead of other agribusiness sectors when the subject turns to child and adolescent protection. “Child protection and the creation of opportunities for rural youth is one of the pillars of SindiTabaco’s work in conjunction with the associate companies. It is awareness work that has been going on for years and culminated with the initiative of the Growing Up Right Institute”, the chief officer comments. Since then, the work has been intensified to expand the initiative and to comply with legal legislations that were created. In 2008, a Deed of Undertaking was signed by SindiTabaco’s associate companies, with the approval of the Union and the Tobacco Growers' Association of Brazil (Afubra), before Rio Grande do Sul’s Public Ministry’s Labor Department (MPT-RS), officially assuming the commitment to fight child labor in the production of tobacco. In March 2011, a similar agreement was signed with the Public Ministry’s Labor Department in Brasília, applicable to Santa Catarina and Paraná. The industries started to require the certificate of enrollment, school attendance certificate and proof of school attendance of the children and adolescents residing on the farms of the integrated tobacco producers. Awareness seminars and publicity campaigns reinforced these special cares. In 2011, in order to adjust to Decree nº 6.481, of 12 June 2008 (which banned any work in agriculture for under-18-year olds), the then “The Future is Now” program  came to be known as Growing Up Right Program. From then on, the range of works was expanded jointly with the municipal administrations and educational networks with the aim to protect children and adolescents. One of the milestones was a training program, in 2012, with the participation of ILO officials, of the upwards of 1.2 thousand agricultural technicians from the tobacco companies, intended to encourage the children of the tobacco farmers to attend regular school classes, thus staying away from irregular labor. On 23 April 2015, one more step was taken with the creation of the Growing Up Right Institute by the SindiTabaco, an entity that was founded by private individuals related to agricultural activities, education and the rights of children and adolescents,  and is sponsored by the industries of the tobacco sector. The Institute provides for opportunities for the young to stay and develop in the rural setting, through income generating options and the development of skills and potentialities. With its pioneer Rural Professional Learning Program the entity offers courses focused on entrepreneurship and rural administration, through professional courses provided by the Learning Law. Know more about it at www.crescerlegal.com.br Photos: Junio Nunes MSLGROUP Andreoli Cibele Gandolpho - cibele.gandolpho@mslgroup.com - (11) 3169-9331 / (11) 96477-2701 www.mslgroupandreoli.com.br

20 | MAY . 2020

Releases

Diversification turns 35 generating extra revenue for the tobacco farmers

May 2020 – While a new tobacco crop is being seeded in the South Region of Brazil, the results of the second crop are ascertained by the farmers who adhered to the Corn, Bean and Pastureland after Tobacco Harvest Program. In 2020, when the initiative turns 35, the cultivation of cereals and pasturelands after tobacco harvest represented an increase of R$ 634.2 million in farmers’ income. According to a survey conducted by the SindiTabaco, all estimates point to a reduction of R$ 5.8 million in total income from 2019, when the result amounted to  R$ 640 million. In Rio Grande do Sul, the negative impact was higher, with total income dropping from R$ 400 million (in 2019) to R$ 297.4 million, mainly by virtue of the prolonged drought that affected the State in the past months. In Santa Catarina, total income rose from R$ 130 million (in 2019) to R$ 205.2 million. And in Paraná income rose from R$ 110 million to R$ 131.5 million. In general, the planted area was smaller in 2019, around 14%. But it was compensated, in part, by higher productivity levels in Paraná and mainly by higher average prices. In the evaluation of SindiTabaco president Iro Schünke, the numbers of the program attest to the importance of a second crop. “Diversification is always a good option for the farmers, as it brings in revenue from different activities. In the case of this program, by cultivating a second crop, the farmers make extra income at lower cost”, the executive officer comments. Another conclusion drawn from the numbers of the past years is the gradual replacement of bean after tobacco harvest. In 2020, 12,878 hectares were devoted to bean, 89,530 to corn, 15,832 to soybean and 35,030 hectares to pasturelands. With regard to the volumes this year, the crops after tobacco harvest amounted to 21,768 tons of bean, 650,288 tons of corn and 43,692 tons of soybean. The survey also pointed to an increase in the cultivation of pasturelands for grass-fed beef: In  the three southern states of Brazil, 35,030 hectares were dedicated to pastures in 2020, against 31,443 hectares in the previous year. KNOW MORE – The initiative is conducted by the SindiTabaco, relying on support from entities and governments of the States of Rio Grande do Sul, Santa Catarina and Paraná. One of the advantages is the reduction of costs in the production of grains, as these crops take advantage of residual fertilizer, and there could also occur a reduction in the cost for producing protein with the use corn for animal feeding. Other benefits include soil protection and the interruption to the pest and weed proliferation cycle. MSLGROUP Andreoli Cibele Gandolpho - cibele.gandolpho@mslgroup.com - (11) 3169-9331 / (11) 96477-2701 Eliana Stülp Kroth - eliana.stulp@mslgroup.com - (51) 3713-1777 / (51) 9708-5539 Thais Thomaz - thais.thomaz@mslgroup.com - (11) 3169-9373 www.mslgroupandreoli.com.br

29 | APR . 2020

Releases

New rules implemented for Integrated Tobacco Production

April 2020 – New rules are in force in the realm of Integrated Tobacco Production and its Certification. The Specific Technical Standard (STS) for the Integrated Tobacco Production System, devised by the Operational and Technical Committee, presents some new procedures in compliance with Decree Nº 443, from the National Institute of Metrology, Quality and Technology (Inmetro), comprising production, harvest and the post-harvest phase (warehousing, commercialization and processing). Some aspects refer to the compulsory requirement of maintaining the Responsible Technician (RT) whose professional qualification is subject to review every five years, along with periodic evaluations of the training needs of the rural workers, day laborers and temporary workers involved. There is also the recommendation to evaluate the need for annually updating the technical qualifications of the assistance teams. To obtain the certification, the requirement to introduce best soil conservation practices was improved, in compliance with the needs and demands of each area. Furthermore, soil analyses of the tobacco growing areas shall be conducted at least every five years. The evaluation of the pesticide residues has turned into the target of more specific operationalization. The document sets forth that the auditor should randomly select the result of residue analyses conducted by the processing company, or by its importers, to verify its compliance with the international patterns. Residue analyses should equally be conducted whenever there is need to corroborate unintentional pesticide drift, or as a result of equivocal or improper use of pesticides. With regard to the audits, the IP Tobacco document sets forth that there should be at least one audit at field level at every crop year. And that the farmers to be audited can be gathered in individual form or by groups, in compliance with the parameters established by legislation in force and by the IP Tobacco program. “The certification represents benefits for all those involved in the supply chain. For the farmers, we are talking about chances to reduce production costs, differentiated product and assurance of market continuity. And for the industries, the certification means recognition of a sustainable crop and a competitive differential in the global market”, says Iro Schünke, president of the Interstate Tobacco Industry Union (SindiTabaco). KNOW MORE – The IP Tobacco program is the opportunity to certify that the crop was obtained in a safe and sustainable manner. It is in fact an official program of the Brazilian government set forth by the Ministry of Agriculture, Livestock and Food Supply (Mapa),  with the aim to ensure product traceability and safety for consumption. With the certification it becomes viable to corroborate the origin and the methods used in the generation of the products, through formal and auditable records, on sustainability principles and their relation with environmental, social and economic demands. Contact with the media: MSLGROUP Andreoli Cibele Gandolpho - cibele.gandolpho@mslgroup.com - (11) 3169-9331 / (11) 96477-2701 Eliana Stülp Kroth - eliana.stulp@mslgroup.com - (51) 3713-1777 / (51) 9708-5539 Thais Thomaz - thais.thomaz@mslgroup.com - (11) 3169-9373 www.mslgroupandreoli.com.br

6 | FEB . 2019

Releases

Tobacco generates US$ 2 billion in foreign exchange in 2018

January 2019 – Brazil shipped abroad 461 thousand tons of tobacco in 2018, generating approximately US$ 2 billion in revenue for the Country. Only from the ports of the three states of the South Region, where tobacco farming is concentrated, 457 thousand tons were shipped abroad, bringing in revenue of US$ 1.95 billion. The result guarantees Brazil’s position as the leading tobacco exporter in the world, for 26 years now (since 1993). The outstanding position in the international market was again confirmed by the Ministry of Development, Industry and Foreign Trade (now known as Special Secretariat of Foreign Trade and International Affairs). Currently, tobacco represents 0.8% of Brazil’s total exports and 3.9% of the shipments in the South Region. Rio Grande do Sul, where the crop is rather representative, accounted for 7.4% of all exports.  According to the president of the Interstate Tobacco Industry Union (SindiTabaco), Iro Schünke, Brazil is responsible for 25% to 30% of all global tobacco businesses. “In 2018, our exports receded slightly compared to the previous year, when 462 thousand tons were shipped abroad, bringing in US$ 2.09 billion”, he says. “This is mainly due to the postponement of the shipment to early this year of a certain amount of tobacco acquired by China”, he explains. From Brazil’s entire tobacco crop, upwards of 85% is destined for abroad, shipped to 100 countries in all continents. The main market is still the European Union, which in 2018 was the destination of 41% of all leaf exports. The second biggest client is the Far East, with 24%. Then come Africa/the Middle East, with 11%; North America, with 10%; Latin America, with 8%, and Eastern Europe, with 6%. Belgium is the nation that is the biggest importer of tobacco from Brazil, followed by the United States (2nd), China and Indonesia. The list of the major clients includes Egypt (5th), Germany and Russia (7th). HIGHLIGHT ALSO IN PRODUCTION – Brazil ranks as second largest global tobacco producer, coming only after China. In the 2017/2018 growing season, the production volume reached 632 thousand tons, representing R$ 6.28 billion in revenue for the farmers and R$ 13.9 billion in taxes. Approximately 150 thousand family farmers cultivate 289 thousand hectares of tobacco in 556 municipalities. In all, 600 thousand people are involved in the rural setting and 40 thousand at industry level.   MAIN TOBACCO IMPORTING MARKETS IN 2018 (IN %) European Union - 41% Far East - 24% Africa/Middle East - 11% North America - 10% Latin America - 8% Eastern Europe - 6%   MAIN TOBACCO IMPORTERS IN 2018 (US$) Belgium - US$ 446 million The United States - US$ 190 million China - US$ 165 million Indonesia - US$ 125 million Egypt - US$ 112 million. Germany - US$ 80 million Russia - US$ 79 million Contact with the media: MSLGROUP Andreoli Camila Holgado - camila.holgado@mslgroup.com - (11) 3169-9322 / (11) 96477-2701 Cristina Severgnini - cristina.severgnini@mslgroup.com - (51) 3713-1777 / (51) 99708-5539 / (51) 99943-5666 Thais Thomaz - thais.thomaz@mslgroup.com - (11) 3169-9373 www.mslgroupandreoli.com.br