Category: Leaf

Tobacco under pressure
The leader of Turkey’s main opposition party, Kemal Kılıçdaroğlu, has said that Turkey’s oriental tobacco is being eradicated, according to a story by Zülfikar Doğan for Al-Monitor.
“In 2002, 405,882 families were making a living from tobacco,” said Kılıçdaroğlu during a CHP [Republican People’s Party, Cumhuriyet Halk Partisi] parliamentary meeting. “In 2015, that shrunk to 56,000. We gave up growing our own tobacco. Foreigners began importing, and as of 2012, Turkey suddenly became a net tobacco importer.”
Another problem, Kılıçdaroğlu said, concerned cigarette taxation, which stood at 84 percent and which had caused a sharp rise in the number of people rolling their own cigarettes.
The story reported that Turkey’s farmers, livestock producers and their related unions were emerging as a new and unexpected mass opposition in the country, staging rallies and marches to protest against sustained heavy economic losses.
Meanwhile, in the tobacco sector, growers are said to have reacted with fury to threats of heavy prison sentences and fines.
Tobacco growers have protested against new regulations restricting how, where and when Turks can produce tobacco.
The aim of the legislation was said to be aimed at preventing tobacco smuggling.
But the Tobacco Experts Association said that with the new restrictions, thousands of tobacco growers would be facing years in jail and heavy fines.
The association expressed opposition also to the liberalization of electronic cigarettes and alleged that the new regulations were drafted in line with wishes of foreign cigarette companies and would soon mean the end of the local tobacco industry.
The full story is at: http://www.al-monitor.com/pulse/originals/2017/10/turkey-farmers-protest-against-government-policies.html.
October 24, 2017
Growers have their say
Tobacco growers around the world are concerned about the implementation of inappropriate tobacco-control measures, and they are particularly concerned about a proposal by the US Food and Drug Administration to reduce the nicotine delivery levels of cigarettes.
Representatives of tobacco-grower organizations from Argentina, Brazil, Bulgaria, Greece, India, Indonesia, Italy, Macedonia, Malawi, South Africa, Turkey, the US, Zambia and Zimbabwe met in Greece on October 17 for the annual meeting of the International Tobacco Growers’ Association.
The representatives said growers were aware of the efforts that had to be made to improve tobacco production and sustainability, and to address challenges such as child labour and deforestation. Growers were committed to working in a compliant manner, following good agriculture practices, to produce a crop that supplied a legal market of more than 900 million consumers and that provided a livelihood to millions of farmers, rural workers and their families around the world.
In a note posted on its website, the ITGA said growers accepted the need to regulate the consumption of tobacco products, but insisted that regulatory measures should be balanced and based on science, not on personal opinions. It was vital to prevent the implementation of measures that had a devastating impact on the livelihoods of millions of tobacco farmers and labourers without achieving any of the desired aims of tobacco control.
Growers were said to be particularly concerned with the recent proposal by the FDA to reduce the nicotine in cigarettes. This measure would influence policy makers outside the US and the effect of it would be felt by the most vulnerable part of the tobacco value chain, the growers. The reduction of nicotine, said the growers, would make the production and sale of traditional cigarettes almost impossible, pushing consumers to illicit products that did not respect such limits. Demand for legal tobacco would drop sharply without an alternative plan being in place for tobacco growers.
Those attending the meeting in Greece agreed that a platform that included all relevant stakeholders, including health authorities, should be set up to discuss this issue and seek solutions. But they seemed not to be optimistic.
‘The World Health Organization’s (WHO) Framework Convention on Tobacco Control (FCTC) keeps excluding growers and their representatives from the discussions being held about matters having a direct impact on tobacco production and, therefore, on growers’ livelihoods,’ the note said. ‘Growers are a legitimate part of this process and they have been asking for their inclusion into the FCTC’s debates.
‘Many of the subjects being debated in the FCTC meetings concern tobacco growers across the world. ‘More specifically articles 17 and 18 relate directly to tobacco production as they refer to alternatives to tobacco production and the environmental impact of tobacco growing.
‘Growers have been offering their help and their expertise to define measures that will directly affect their future. The legitimate growers’ representatives could have helped the government delegations attending FCTC meetings to have a much more realistic view of the present situation of tobacco growing around the world.
‘Growers insist that the WHO FCTC must return to its original mandate under Article 17, as was reiterated at the previous Conference of the Parties (COP6) in Moscow. Said COP6 reaffirmed the importance of carrying out studies and research to identify alternative crops that could provide a level of income and assured export markets equal to those provided by tobacco. For this reason, it was agreed upon that pilot projects in tobacco-growing regions would be necessary to demonstrate the long-term feasibility of such alternative crops.’
Since the beginning of the FCTC negotiations, growers have requested that:
- their right to be consulted on the development of policies which have a direct impact on them must be guaranteed;
- the significant economic contribution of the tobacco crop to the economies of tobacco-growing countries should be recognized; and
- a comprehensive economic study on the market should be conducted and taken into account when proposing measures.
October 23, 2017
ILO told to cut tobacco ties
Ahead of the meeting of the governing body of the International Labour Organization (ILO) on November 1, a coalition of about 200 public health organizations, including the World Health Organization, is urging the ILO to end its tobacco-industry ties, according to a story in the Nation (Thailand) relayed by the TMA
Dr. Mary Assunta, senior policy adviser for the Southeast Asia Tobacco Control Alliance (SEATCA), was quoted as saying that it was unfortunate that the ILO chose to damage its reputation by accepting money from the tobacco industry when other UN agencies had already “disengaged themselves from Big Tobacco”.
In June, the story reported, the UN had adopted a resolution encouraging its agencies to disengage with the tobacco industry, and, last month, the United Nations Global Compact (UNGC) had permanently banned tobacco industry participation.
Assunta said that the ILO had the opportunity “to catch up” with other agencies and “stand on the right side of history to prioritise and protect workers’ welfare”.
It was estimated that, since 2015, the ILO had received more than US$15 million from tobacco corporations for joint programs to combat child labor.
SEATCA said the industry used this collaboration to boost its public relations, but did little to address poverty among farmers, which was the cause of children having to work in tobacco fields.
Assunta urged the agency not to be swayed by “the paltry handouts from the tobacco industry”, and called on the governing body to cut ties with the tobacco industry as recommended in the model policy of the UN Inter-agency Task Force.
October 19, 2017
Growing plans in Azerbaijan
Under government plans, Azerbaijan is aiming to increase the amount of land under tobacco from 3,200 ha to 6,000 ha, according to an AzerNews story relayed by the TMA.
Azerbaijan produces 1.6 billion cigarettes a year but consumes more than 10 billion, which means that it spends about US$150 million a year on imports.
Economist Dr. Rufat Guliyev indicated the time was right to increase production.
For one thing, new varieties had been introduced during the past 15 years.
For another, the current level of tobacco control in Europe meant it was practically impossible to plant tobacco there.
In addition, the world had almost ceased offering subsidies in the sphere of tobacco growing.
Azerbaijan harvested 3,700 tons of tobacco during January-September, up 19.3 percent on that of the corresponding period of last year, according to the State Statistics Committee.
Also in January-September, the country produced tobacco products worth 27.48 million manat (US$16.2 million), down 12.8 percent on the value of products produced during the first nine months of 2016.
October 19, 2017
Tobacco losing out in India
Some farmers in India are exploring the possibility of moving from tobacco to alternative crops, according to a story in the latest issue of the BBM Bommidala Group newsletter.
Farmers in the traditional tobacco-growing areas of the Prakasam district of Andhra Pradesh are said to be exploring the possibility of switching from tobacco to crops such as Bengal gram.
Mechanization has made growing Bengal gram relatively easy and farmers are being attracted to this crop by what are described as ‘attractive’ prices.
The situation is such that the Indian Tobacco Association (ITA) is expecting a decline in tobacco yields in the district.
Meanwhile, the Tobacco Board of India and bankers are planning to assist tobacco growers with ‘farmer-friendly’ initiatives. The board has increased the crop size by two million kg to 86 million kg in the regions under the Southern Black Soil (SBS) and Southern Light Soil (SLS) auction platforms, and the leading bank in the district has increased the amount of loan assistance on offer from Rs350,000 per barn to Rs400,000 per barn.
However, the ITA believes that the combined crop in the SBS and SLS regions could be 70-75 million kg against the authorized crop size of 86 million kg.
October 10, 2017
Tobacco association formed
The Association of Tobacco Producers & Exporters has been established to help Azerbaijan increase the production and export of tobacco and tobacco products, according to an Azerbaijan Business Center story.
The ministry of economic affairs was said to have reported that the association was founded on the initiative of producers and exporters of tobacco with the support of the National Confederation of Entrepreneurs.
The constituent meeting of shareholders was conducted in Zagatala on October 6, the ministry said.
During the meeting, members of the association’s board and audit commission were elected, and Telman Hasretov was elected chairman of the board.
The association is expected to help co-ordinate the activities of the producers and exporters of tobacco products, expand co-operation among them, accelerate development of the sector and provide for increasing production and export of tobacco and tobacco products.
October 9, 2017
Self-sufficiency a dream
Doubt has been cast on claims that Iran will be self-sufficient in the production of tobacco within five years, according to a story in The Financial Tribune quoting the Al Sharq newspaper.
While the designers of the country’s sixth five-year development plan, 2017-2022, have envisioned Iran becoming self-sufficient, the plan seems unlikely to be fulfilled given what the Tribune described as the sorry state of Iran’s tobacco industry.
The plan has set the goal of producing between 40,000 and 50,000 tons of tobacco a year.
But, according to the head of the Center for Tobacco Planning and Supervision, Ali Asghar Ramzi, only 20 percent of this amount is now being produced in Iran. The other 80 percent is imported from Latin America, Africa and Asia.
“Plans have been made to increase land under tobacco cultivation by 500 percent to achieve self-sufficiency,” the official said, while adding that imported tobacco is 30-40 percent more expensive than is domestic tobacco.
The problem is that former tobacco farmers, who now grow rice or other agricultural products, are said not to be willing to switch back to tobacco.
Most tobacco farms in northern Iran have been converted to paddy fields or used to build villas.
October 9, 2017
Tobacco losing its allure
In the face of declining revenues, most of Malawi’s tobacco growers are ‘slowly abandoning’ the crop in favor of others, such as soya beans, sorghum, and groundnuts’, according to a story in The Nyasa Times.
The switch out of tobacco was described as a survival mechanism.
Malawi has for decades relied on its annual tobacco income to run its economy, and the government is said still to be ‘glued’ to it. Officials have indicated several times that Malawi will continue to grow the crop.
This is even though figures from the Tobacco Control Commission (TCC) show that tobacco revenue has, since 2010, declined by a third in dollar terms from $410 million to $275 million this year.
And this is even though most prominent tobacco growers, including members of the Tobacco Association of Malawi (TAMA), are now said to be backing off from the crop.
In a Times interview, TAMA CEO Mathews Zulu confirmed that a number of TAMA members were backing off from the crop in the face of declining tobacco-grower revenues during the past five years.
Zulu said even TAMA had a diversification plan that was looking at ensuring its own survival in response to demands from its members to grow other crops.
He said that so far three out of the 49 co-operatives under TAMA had signed contracts with Chibuku Products Limited to start growing sorghum beginning this year.
“Apart from sorghum, we are also looking into crops such as soy beans, sunflower, groundnuts and other commercial crops that tobacco farmers who are our members are now growing,” he said. “In this new strategy, we want to go towards contract marketing so that farmers should be producing for the market and not producing before they identify the market.”
One of the major tobacco buyers in the country, Alliance One Tobacco Company, was said to have announced recently that it was diversifying its operation by growing legumes in Dowa, one of the districts that is traditionally known for growing tobacco.
Alliance MD Hugh Saunders said the diversification initiative was a response to the pressure that was threatening the future of tobacco, especially Burley.
An economics professor at the University of Malawi’s constituent Chancellor College Ben Kaluwa said the move by TAMA was a wake-up call to the government and other tobacco stakeholders.
“Over the past years, tobacco has not been performing well in terms of revenue, and coupled with the global anti-smoking lobby, the future does not look good,” he said.
October 5, 2017
Japan’s leaf gets all clear
Japan Tobacco Inc. said today that testing for radioactive materials in this year’s domestic Burley tobacco had been completed and had shown that none of the leaf tested had exceeded the JT standard value.
JT has been conducting pre-purchase and other tests at each stage of its production process for radioactive materials in Japanese domestic leaf tobacco, using a standard value, since the accident at the TEPCO Fukushima Daiichi nuclear plant in 2011.
‘Prior to this year’s Japanese domestic tobacco harvest, the company has again been conducting radioactive material testing on leaf tobacco before purchase, with the support of tobacco growers,’ JT said in a note posted on its website.
‘Testing of this year’s Burley has now been completed, showing none of the leaf tobacco tested exceeded the JT standard value (Radioactive cesium: 100Bq/kg).
‘Furthermore, JT will continue with its scheme of testing domestic leaf tobacco after purchase, and testing and monitoring a number of times at each stage of the production process.’
October 5, 2017
Taiwan to stop growing
About 84 percent of Taiwan’s tobacco farmers have stopped growing the crop, according to a story in The Taipei Times quoting the Council of Agriculture.
The Council said that farmers could apply for subsidies until the end of the year, when the Taiwan Tobacco and Liquor Corp (TTLC) is due to stop buying domestic tobacco.
Prior to 2002, when Taiwan became a member of the World Trade Organization, tobacco and alcohol sales were government-controlled, but the system was abolished with the formation of the TTLC.
Since its formation, the TTLC’s tobacco purchases had gradually shifted overseas, which had greatly affected domestic tobacco farming, said Agriculture and Food Agency Secretary-General Weng Chen-hsin.
In 2013, the council started to help tobacco farmers transition to other crops, but with limited success, he said.
Then, in February, the council started paying farmers who stopped growing tobacco NT$600,000 per ha. Those who accepted the payment agreed not to grow or sell tobacco; or to return the money if they did.
Under the scheme, farmers willing to grow other produce can be provided with subsidies on seeds, equipment and fertilizers, the council said.
Of the 1,530 registered tobacco farmers, 1,250 have applied for the one-off payment, while 49 have applied to grow other crops, Weng said.
The council has so far paid for about 524 ha to be taken out of tobacco.
According to the Tobacco Hazards Prevention Act, one percent of the nation’s cigarette tax revenue is used to subsidize tobacco farmers.
October 4, 2017