Universal Reduces Flue-Cured, Burley Tobacco Forecasts for 2009

Source from:  Bloomberg 06/04/2009

Universal Corp., the world's largest tobacco-leaf merchant, forecast global output of 4.277 billion kilograms (9.43 billion pounds) for the top grade of the leaf this year, below its previous estimate. The forecast for flue-cured tobacco compares with an estimate of 4.296 billion kilograms, given on March 31, the Richmond, Virginia-based company said on its Web site. Global output of the tobacco last year was 4.175 billion kilograms. So-called burley tobacco production will probably be 844 million kilograms this year, 2.4 percent less than the previous forecast. Burley production totaled 734 million kilograms last year, Universal said. Oriental tobacco output was 266 million kilograms last year, Universal said. It hasn't yet given a forecast for oriental production this year. Flue-cured tobacco is dried in a closed barn with heat piped from a furnace, while burley is cured in the open air. Oriental tobacco is an aromatic leaf. Enditem