ULT Magyarország has raised its basic tobacco purchase prices

By: STA Date: 2024. 02. 16. 09:00

In this year’s tobacco growing season, Universal Leaf Tobacco (ULT) Magyarország Kft. has announced increased basic tobacco purchase prices for both types of tobacco compared to last year, the agronomy director of the American-owned company dealing with the integration and acquisition of cultivation told MTI on Friday.

(Photo: Pixabay)

Tibor Fekete said that the previous price system, which worked with a more modest base price and a dynamic surcharge, was changed primarily at the request of Virginia producers in such a way that the base price increased by sixty percent, but a one hundred percent surcharge is still provided for the amount of produce over 1,000 kilograms per hectare – explained the director of agronomy. He noted that an 18 percent base price increase was announced at Burley, taking into account the January sales, and the surcharge became 150 percent under conditions similar to the previous one, and with this – in the case of an average harvest – ULT provides its producers with an increase in income following inflation in 2024. He added that the quality and quantity of dry tobacco received from producers improved significantly compared to the low point of 2022. 1,900 tons of Virginia and 465 tons of Burley were produced last year.

In terms of quantity, the company was able to purchase more than 7 percent more tobacco overall, and the composition of the selection was particularly good

This further strengthened the position of Hungarian tobacco on the European market – assessed the expert. He noted that Hungary produces filler tobacco of excellent, usable value for both varieties, so it is no coincidence that, considering 2018 as the base year, the prices offered for the crop were increased by 127-130 percent for both types of tobacco.

According to the data, the yield of 1,100 kilograms per hectare in 2022 rose to over 1,500 kilograms in 2023

According to the expert’s estimates, there may be an additional yield increase of 300-400 kilograms in Hungarian tobacco cultivation, which could be realized within two to three years. A very strong competitive culture has been created, which has a strong position in Hungarian agriculture compared to other partner cultures – emphasized Tibor Fekete. Commenting on this year’s prospects, the expert said that ULT aimed to produce 2,200 tons of Virginia and 500 tons of Burley this season, and this can be a realistic expectation based on the favorable experiences of the past year.

MTI