Business

HD Tobacco Processing Company Begins Negotiations on New Production Season

By 21 January 2022
HD Tobacco Processing Company Begins Negotiations on New Production Season
Photo: Damir Spehar/PIXSELL

ZAGREB, 21 Jan 2022 - The Croatian tobacco processing company Hrvatski Duhani (HD), a member of the British American Tobacco Group, has begun negotiations on the new production season, the company said on Friday.

The new season is the continuation of the successful purchase of tobacco in 2021 when a total of HRK 81.6 million was paid out to tobacco producers, which is as much as HRK 6 million more than in 2020, HD said.

This is the largest volume and value of production in the last four harvests despite major challenges last year when inclement weather, including draught, hail, and frost, affected the quality and yield of tobacco. Given that HD had ensured the most favorable insurance terms, producers were paid more than HRK 16 million, the company said.

The company said that last year it had invested over HRK 18 million in machine harvesting and that about 50 percent of tobacco had been harvested mechanically. New technology helped reduce costs and increase yields while at the same time helping producers to overcome the problem of labor shortage.

HD said its goal was to continue to increase the quality and yield of tobacco and the profitability of producers in 2022.

(€1 = HRK 7.5)

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