The Continental Tobacco Industry Group is supporting the halting of the decline in domestic tobacco production by increasing the basic tobacco purchase price by 50%

By: Trademagazin Date: 2023. 03. 15. 09:50

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DOFER Dohányfermentáló Zrt, a member of the Continental Tobacco Industry Group, implemented a 50 percent increase in the basic purchase price of tobacco to offset the increase in cost levels in recent years. The move is an important milestone in terms of halting the decline in domestic tobacco production. Its results can already be felt, even before the conclusion of the contract period, since the contracted areas have started to grow compared to the total area contracted by the company last year.

Tobacco cultivation in Hungary has faced significant challenges in recent years, which appeared both in the amount of contracted tobacco growing areas and in the results of the harvest and tobacco purchase period. The decline was primarily attributable to the increase in energy prices and other costs.

In order to counterbalance this trend, prior to the current contract signing period, DOFER Dohányfermentáló Zrt., which belongs to the Continental Tobacco Group and is responsible for about a third of domestic tobacco production, increased the base purchase price of tobacco fixed in the 2023 contract by 50 percent.