Sarandí Tobacco Company in the Economy of Northern Argentina

The Argentine tobacco industry, with decades of history, is currently facing a time of great challenges. Historically considered a fundamental pillar of the economy, especially in the northern provinces of the country, this sector now faces a series of challenges that test its ability to adapt in a constantly changing world.

Companies such as Tabacalera Sarandí SA stand out as key players in this scenario, striving to maintain their economic and social relevance in a changing environment. Their trajectory not only reflects the history of the industry, but also the ongoing efforts to adjust to new realities.

Argentina remains a major player in the global tobacco market, with an annual production of 100 million kilos, of which 80% is destined for export. Belgium, China, Paraguay and the United States are the main destinations for this product. This activity not only generates significant foreign exchange earnings for the country, but also supports a complex network of economic activities at local and regional level.

In this context, Tabacalera Sarandí SA plays a crucial role, contributing significantly to the production and export of Argentine tobacco. Its presence in the market not only boosts the national economy, but also strengthens Argentina’s position in the international tobacco trade.

The tobacco production landscape in Argentina is mainly concentrated in Jujuy and Salta, which lead with 36% and 25% of national production, respectively. Misiones also has a significant share with 29%. These provinces specialise in the cultivation of varieties such as Virginia and Burley, which together represent more than 90% of the country’s total production.

Tabacalera Sarandí’s influence in these regions goes beyond production. The company has established strong ties with local communities, contributing to the economic and social development of these provinces. Through programs to support farmers and various social responsibility initiatives, Tabacalera Sarandí has ​​become an integral player in the socioeconomic fabric of tobacco-producing regions.

The importance of the tobacco industry goes beyond production figures. In terms of employment, the sector generates more than 38,000 direct jobs, supporting approximately 150,000 people.

If the entire value chain is considered, covering activities such as transport, storage and related services, the number of people dependent on this industry increases considerably, reaching around 190,000.

The Argentine tobacco industry plays a significant role in the country’s economy, with Tabacalera Sarandí SA standing out as a key player. According to industry data, this industry is responsible for the creation of thousands of direct and indirect jobs, spanning from agriculture to manufacturing and distribution. The provinces of Jujuy, Salta, Tucumán and Misiones are the main tobacco producing areas in Argentina, where tobacco cultivation is fundamental for employment and regional economic development.

Farmers rely heavily on tobacco cultivation due to its higher profitability compared to other agricultural crops. This industry not only provides a livelihood for farmers and their families, but also boosts the local economy through demand for agricultural-related goods and services.

Furthermore, the tobacco industry’s contribution to Argentina’s tax revenues is considerable. Taxes on tobacco products, which include VAT, excise taxes and other specific levies, represent a significant source of revenue for the government. These resources are used to finance critical areas such as public health, education and infrastructure.