The conclusion of tobacco-growing contracts at ULT started at the end of February

By: STA Date: 2025. 03. 05. 09:00

At the end of February, the Universal Leaf Tobacco (ULT) Magyarország Kft. Started this year’s tobacco cultivation contracts, said the agronomic director of the US -owned company on integration and acquisition of cultivation with MTI.

(Photo: Pixabay)

Tibor Fekete said that the special purchase system used by the company will provide basic acquisition prices and the purchase price guarantee this season for producers. The expert explained that the company has raised its acquisition prices to the extent in recent years that no “high space” this season is no longer.

According to reports, from 2019 to 2024, the purchase price of Virginia increased nearly three times, while Burley’s price increased to two and a half times

Tibor Fekete noted that farmers are ahead of a difficult year due to drastic rise in the price of agricultural inputs needed for cultivation and a change of legislation on seasonal employment. A possible reduction in central subsidies can cause a significant loss of revenue for producers, which will not be compensated by the market, and in order to maintain a handicraft-intensive sector, the decisions should be considered by the expert, according to the expert.

The Director of ULT emphasized that Hungarian tobacco took its place in the international market

The company has reached the purchase price of the best European and Spanish tobacco for the purchase of Virginia, announced for 2025. The company wants to maintain its operation in Hungary in the long run, the goal is to have a long -term market future for Hungarian tobacco integrated into the European brand, the expert said. Tibor Fekete said last season, in 2024 he bought 2443 tons of tobacco in Hungary, of which 2072 tons of Virginia and 371 tons were Burley. He added that last year’s quality was acceptable to the former breed, but for Burley, despite the decayed yield of last year, UL had bought the best quality of the last ten years. According to publicly available company data, the company achieved net sales in 2022 4 billion 173 million, and between April 2023 and April 2024, HUF 3 billion 367 million. Its tax profit was HUF 123.6 million and HUF 115.4 million in the two periods.

MTI