The social and economic history of North-Eastern Brazil has largely been written as the story of slave-holding plantations. In contrast, this article focuses on the peasant agriculture of tobacco in the state of Bahia. It shows how the small-scale cultivation of tobacco for the European (mainly German) export market had already started well before the end of slavery. Tobacco cultivation gradually expanded to become the most important export product in the first decade of the twentieth century. Apart from its economic significance, the history of Bahian tobacco agriculture throws an interesting light on the social and political relations in the region. Land ownership among the tobacco farmers expanded, but most of them remained locked into ties of dependency to commercial intermediaries and large landowners. On the other hand, the latter's dominant position did not lead to a strong position for tobacco interests in the regional political arena. Finally, the tobacco producers originated in the black (ex-)slave community. This article argues that this specific ethnic make-up played an important role in the organisation of the tobacco sector and its relative neglect by regional and national politicians.