Universal Corp Cuts '05 world Burley Tobacco Output Forecast

Source from:  financialexpress.com 06/29/2005

Universal Corp, the world's biggest tobacco-leaf merchant, cut its forecast for global production of burley tobacco in 2005 for a second month as it reduced its production estimates for China, Malawi and Mozambique. Richmond, Virginia-based Universal lowered its production outlook for the tobacco variety to 784 million kilograms (1.72 billion pounds) from a May forecast of 831 million kilograms, the company said in a report on its Web site on June 24. Universal cut its estimate of burley production in China by more than half to 23 million kilograms. The estimate for Malawi, the world's biggest producer last year, was reduced by 4.2% to 113 million kilograms as a drought caused crops to fail. In neighboring Mozambique, which has also been affected by dry weather, the crop estimate was cut to 44 million kilograms from 51 million kilograms. The estimate for the amount of higher-grade flue-cured Tobacco available for export was raised 1.1% to 1.809 billion kilograms, on a higher estimate for India, the world's second-biggest exporter of the variety. Universal's forecast for total production of that variety is 3.9 billion kilograms, with most of that coming from China, which consumes its own output. Universal also cut its estimate for 2004 production of oriental tobacco to 371 million kilograms, from 374 million kilograms a month earlier. Turkey and Greece are the top two producers of the variety, used in flavored blends. Flue-cured tobacco is dried in a closed barn with heat piped from a furnace. Burley is cured in the open air. Enditem