The adoption of high yielding cultivars and improved cultural practices have led to overall quality improvement in Brazilian tobacco, and established a reliable export presence. Prices stimulated an export-oriented boom, which boosted production.
So far, research stations have not paid much attention to alternative crops to replace tobacco. A few crops have been proposed, particularly for the south, but no work has been done on the economics of substitution. Far more detailed research work is needed before any prescription can be made to replace tobacco in the south. In the absence of reliable substitute crops, tobacco will remain an important source of income to Brazilian small-scale farmers.
Concerns about the health risks of smoking have prompted some government action, with empirical evidence suggesting that anti-smoking campaigns are possibly the most efficient way to mitigate the health hazards of smoking. The effects of national campaigns have been in part offset by the export boom of the 1990s, otherwise the tobacco industry could have been severely damaged. The tobacco sector makes a large contribution to export earnings and government revenues. Both would suffer if world demand decreases in future. Employment in tobacco production, processing and manufacturing would suffer were demand to fall.
