The 2018 Burley crop looks like being the smallest such crop produced since records were first kept, according to the latest issue of Christopher Bickers’ Tobacco Farm Newsletter.
Bickers quotes the COO of the Burley Stabilization Corporation, Daniel Green, as saying that the crop just coming onto the market had been projected at 90 million pounds.
And while the numbers might end up a little higher than 90 million pounds by the end of the delivery season, Green had said that they would not total more than 100 million pounds, which would be the smallest Burley crop since records have been kept.
Bickers said that part of the shortfall had resulted from substantial cutbacks in plantings in the spring, which had amounted to 20 percent according to the US Department of Agriculture.
But he added that losses caused by late-season rains were the big factor. Some fields had been drowned.
Tag: United States
Small US Burley crop
Moral challenge laid down
Action on Smoking and Health (ASH US) has said that it is time to phase cigarettes out of the US market.
In a press note issued yesterday, the day on which the US Food and Drug Administration announced crackdowns on various tobacco and nicotine-delivery products, ASH focused on the announcement by the FDA Commissioner, Scott Gottlieb, MD, that he intended to begin the process of banning the sale of menthol cigarettes.
‘Menthol was left out of a cigarette-flavoring ban in 2009, and the result is that African Americans smoke menthol cigarettes at a much higher rate – and suffer the consequences – than the general population,’ the note said. ‘But it’s long past time to think about doing away with cigarettes altogether. As Stanford University’s Robert Proctor put it in his book Golden Holocaust, “the cigarette is the deadliest artifact in the history of human civilization”.’
ASH went on to say that the addition of menthol made the first cigarette a person smoked easier on the throat, which made inhaling easier and increased nicotine addiction.
It said that menthol brands had been heavily marketed to African Americans, resulting in nearly nine out of 10 African American smokers using menthol cigarettes.
And it said that cigarettes generally still caused nearly 500,000 deaths in the US annually, over 1/5th of all deaths.
‘As a society, we have become numb to the harm caused by cigarettes, thanks largely to a century-long tobacco-industry public relations campaign to normalize smoking,’ the note said. ‘But take a step back, and imagine a new product coming on the market tomorrow that is highly addictive and deadly when used as intended. It would be removed from the shelves immediately.
‘Ask yourself another question: at what age do I want my kids to start smoking? The answer for nearly everyone is obviously “never”. Most smokers want to quit and wish they had never started. Nearly all made the “choice” to smoke that first cigarette as children; by adulthood, they were already addicted.’
Laurent Huber, executive director of ASH, was quoted as saying that the mass marketing of cigarettes, a highly sophisticated, addictive and defective nicotine delivery device that killed over seven million people globally every year, was an abuse of corporate power and a human rights violation. “Banning menthol is a step in the right direction, but it is time to go one step further and phase cigarettes out of the market to prevent millions of unnecessary deaths,” Huber said.
ASH said the FDA was precluded from banning tobacco sales when it was given authority over tobacco products. ‘But all the states and many local jurisdictions are empowered to end the sale of cigarettes and protect the lives of their citizens,’ the note said. ‘Such a move was politically impossible when we first learned of the health harms caused by smoking – about half of adults smoked. But we’ve made progress in the past 50 years, and driven that figure down to about 14 percent.
“It’s now within reach,” Huber said. “With the stroke of a pen, communities can end the number one preventable cause of death and disease.”FDA plans welcomed
The US Food and Drug Administration’s plans to restrict the availability of tobacco and nicotine-delivery products containing flavors has been generally welcomed.
The FDA yesterday outlined a new policy framework to address what it sees as the ‘central problems’: ‘youth appeal and youth access to flavored tobacco products’ [the FDA deems electronic cigarettes to be tobacco products].
It said it would be taking steps on the following product categories:- ‘Flavored ENDS products (other than tobacco, mint, and menthol flavors or non-flavored products) that are not sold in an age-restricted, in-person location;
- ‘Flavored ENDS products (other than tobacco, mint, and menthol flavors or non-flavored products) that are sold online without heightened age verification processes;
- ‘Flavored cigars;
- ‘ENDS products that are marketed to kids; and
- ‘Menthol in combustible tobacco products, including cigarettes and cigars.’
Companies and organizations have been falling over themselves to welcome the plans insofar that they target reducing the availability of flavored products to young people.
But they are split over the question of menthol combustible cigarettes, with cigarette companies generally setting out their position that there is not enough scientific evidence to support a ban on menthol cigarettes.
Meanwhile, some organizations want the FDA to go further. The president of the American Medical Association, Barbara L. McAneny, MD, said AMA policy called for the FDA to go a step further and prohibit the use of flavoring agents in tobacco products, including e-cigarettes.A reasonable question
Writing at reason.com, Jacob Sullum poses a pointed question. Why should adult US smokers pay, potentially with their lives, for the carelessness of convenience store clerks?
He said that the moral logic of the trade-off demanded by the US Food and Drug Administration escaped him.
Sullum, who is a senior editor at Reason magazine, was commenting on the FDA’s proposed efforts to address what it sees as a vaping ‘epidemic’ among young people – efforts that include limiting the flavor options of vaping products sold in most stores to those claimed to be least likely to appeal to the young. Stores that fail to check properly the ages of people buying such products are seen by the FDA as a major supplier to young people.
Critics of the vaping industry, Sullum said, portrayed the flavors that the FDA wanted to ban from stores that admit minors as evidence of a conspiracy to hook the youth of the US on nicotine. The FDA had a more sophisticated understanding of the market but was still far too willing to sacrifice the interests of adult smokers in the name of fighting an ‘epidemic’ of underage e-cigarette use.
Sullum quotes the FDA Commissioner Scott Gottlieb as saying or implying on several occasions that switching adult smokers to vaping could have an unprecedented, positive health impact.
And he says it follows that making e-cigarettes less appealing and less accessible has a public health cost, measured in smoking-related diseases and deaths that otherwise would not have occurred.Menthol under threat
The US Food and Drug Administration plans to propose a ban on menthol cigarettes this week as part of its aggressive campaign against flavored electronic cigarettes and some tobacco products, according to a story by Sheila Kaplan for the New York Times, quoting agency officials.
However, Kaplan said the proposal would have to go through the FDA’s ‘regulatory maze’, and that it could be several years before such a restriction took effect, especially if the major tobacco companies contested the agency’s authority to do so.
None of the major tobacco companies were ready to comment on the possibility of barring menthol cigarettes.
Such a move has been long-awaited by some public health advocates, who have been especially concerned about the high percentage of African-Americans who become addicted to menthol cigarettes.
Dr. Scott Gottlieb, the agency’s commissioner, would not comment publicly on the proposal on Friday [when Kaplan’s piece was published]. But he was quoted as having said in a recent interview that the FDA was revisiting the issue, one that had been weighed by previous administrations. “It was a mistake for the agency to back away on menthol,” he said.
Canada has already imposed a ban on menthol cigarettes, and the EU’s ban is set to go into effect in 2020. Earlier this year, San Francisco passed a prohibition against the sales of menthol cigarettes and flavored e-cigarettes.
Kaplan said that the menthol proposal was just one of several initiatives the FDA planned to announce sometime this week, which would include a ban on sales of most flavored e-cigarettes, except menthol and mint, at retail stores and gas stations across the country.
The products, which include such flavors as chicken-and-waffles and mango, would be mainly relegated to sales online, at sites where the agency hopes to impose strict age verification to ensure that minors cannot buy them.Smoking at record low in US
Cigarette smoking has reached the lowest level ‘ever recorded’ among US adults, according to new data published by the Centers for Disease Control and Prevention (CDC), the Food and Drug Administration (FDA), and the National Institutes of Health’s National Cancer Institute (NCI).
That left about 47 million (one in five) US adults using ‘tobacco’ products last year, products that were said to include a variety of smoked, smokeless, and electronic tobacco products.
‘An estimated 14 percent of US adults (34 million) were current (“every day” or “some day”) cigarette smokers in 2017 – down from 15.5 in 2016 – a 67 percent decline since 1965,’ a CDC press note said. [It wasn’t clear why some figures were given to one place of decimals while others were not.]
‘A particularly notable decline occurred among young adults between 2016 and 2017: about 10 percent of young adults aged 18 to 24 years smoked cigarettes in 2017, down from 13 percent in 2016.’
“This new all-time low in cigarette smoking among US adults is a tremendous public health accomplishment – and it demonstrates the importance of continued proven strategies to reduce smoking,” said CDC director Robert Redfield.
“Despite this progress, work remains to reduce the harmful health effects of tobacco use.”
Information contained in the 2017 National Health Interview Survey (NHIS), published in yesterday’s Morbidity and Mortality Weekly Report, described how the range of tobacco products used by US adults included ‘cigarettes, cigars, e-cigarettes, hookah/water pipes/pipes, and smokeless tobacco’. The survey has been used to assess cigarette smoking among US adults since 1965, but surveillance of other tobacco products began more recently
‘In 2017, cigarettes were the most commonly used product (14 percent) among US adults, followed by cigars, cigarillos, or filtered little cigars (3.8 percent); e-cigarettes (2.8 percent); smokeless tobacco (2.1 percent); and pipes, water pipes, or hookahs (1 percent),’ the note said.
‘Of the 47 million adults who currently use any tobacco products, about nine million (19 percent) reported use of two or more tobacco products. The most common tobacco product combinations were cigarettes and e-cigarettes.
The note then goes on to describe how tobacco-product usage varies within ‘subgroups’ and to quote NCI director Norman E. Sharpless, MD, as saying the persistent disparities in adult smoking prevalence described in the report emphasized the need for further research to accelerate reductions in tobacco use among all US citizens.
Meanwhile, FDA commissioner Scott Gottlieb, MD, was quoted as saying that the continued drop in adult smoking rates to historic lows was encouraging and that the FDA was committed to accelerating declines in smoking and shifting the trajectory of tobacco-related disease and death through its comprehensive approach to tobacco and nicotine regulation. “We’ve taken new steps to ultimately render combustible cigarettes minimally or non-addictive and to advance a framework to encourage innovation of potentially less harmful products such as e-cigarettes for adults who still seek access to nicotine, as well as support the development of novel nicotine replacement drug therapies,” he said.
“At the same time we’re also working to protect kids from the dangers of tobacco product use, including e-cigarettes.”Universal results improved
Universal Corporation’s results were improved due to strong sales volumes, in part because of higher carryover sales and higher African Burley production volumes, said chairman, president, and CEO George C. Freeman III in announcing yesterday the company’s half-year results to the end of September.
“We have completed a significant portion of our crop purchases for the fiscal year,” Freeman was quoted as saying. “Burley production volumes are up in Africa, and crops outside of the United States are coming in as expected.
“Hurricane Florence caused significant damage to the United States’ flue-cured tobacco crop during the second fiscal quarter. The most severely hit area was eastern North Carolina where we estimate up to half of the crop was still in the fields and most of that remaining crop was destroyed.
“However, our farmer base is largely located outside of what was the storm’s direct path, which should mitigate the impact on our results in the second half of the fiscal year.
“Despite the recent supply disruptions in the United States, we believe that we are on track for a strong year with volumes above those of last year. Customer demand has exceeded our expectations in certain origins, and we believe some customers are capitalizing on attractive buying opportunities that we have been able to offer due to our strong market position and efficient operations.
“Our uncommitted inventories remain within our target range at levels lower than those of the previous fiscal year at this time.”
Freeman went on to say that Universal was exploring opportunities to expand its services in its core tobacco business, while exploring also growth opportunities outside that business, leveraging its strengths and expertise.
Universal reported net income for the first half of fiscal year 2019 of $44.6 million, or $1.76 per diluted share, which was increased from $29.7 million, or $1.16 per diluted share during the same period of the previous fiscal year. The first half of fiscal year 2019 was said to have included non-recurring tax benefits that reduced income taxes and increased net income by $7.8 million, or $0.30 per diluted share.
Operating income of $62.7 million for the six months to the end of September 30 was said to have been increased by $11.6 million or 23 percent on that of the six months to the end of September 30, 2017, $51.2 million.FDA extends deadline
The US Food and Drug Administration is extending its ingredient-listing compliance deadline for some companies operating in areas where there have been recent natural disasters.
In a note issued through its Center for Tobacco Products, the FDA said it was aware that small-scale tobacco product manufacturers and importers in areas declared by the Federal Emergency Management Agency to have been impacted by recent natural disasters were dealing with extraordinary circumstances.
And it said they might need additional time to meet the ingredient listing requirements of Section 904(a)(1) of the Federal Food, Drug, and Cosmetic Act.
‘As a result, FDA is extending the compliance deadline for the ingredient listing requirements to May 8, 2019, for small-scale tobacco product manufacturers and importers of deemed products on the market as of August 8, 2016, in the areas affected by these recent natural disasters,’ the FDA said.
Businesses with questions about the new compliance deadline were advised to contact the FDA at SmallBiz.Tobacco@fda.hhs.gov or 1.877.287.1373.
However, the FDA added that, for small-scale tobacco product manufacturers and importers of deemed products on the market as of August 8, 2016, not affected by recent natural disasters, the compliance date remained November 8, 2018.
Further details and a complete list of the affected areas is available here.Seeking common ground
The US Food and Drug Administration has been told that it should refrain from a crackdown across the vaping category but act decisively against its ‘bad actors’.
Jeff Stier, senior fellow at the Consumer Choice Center, offered this advice as the FDA prepares its new action plan on electronic cigarettes.
Stier put forward some ‘simple steps’ for the FDA to follow if it wanted to adhere to common ground.
“We should all be able to agree that e-cigarettes are not entirely safe and should not be used by kids,” said Stier.
“At the same time, as Public Health England has been saying for more than three years, e-cigarettes are around 95 percent less harmful than combustible cigarettes and can help smokers quit. To maximize protection to Americans of all ages, the FDA must finally formulate sensible, science-based policies to achieve two key goals:- “Prevent youth from initiating the use of any nicotine-containing product, including e-cigarettes.
- “Foster switching by adult smokers who have been unable to quit by other means.”
Stier said the FDA was threatening that, because of ‘news reports,’ public opinion and data about youth use that the agency hadn’t released, it might soon remove many e-cigarettes from the market, including most flavors, as well as the pods they come in, until a manufacturer applies for and receives approval for each product.
The agency was warning also that it might ban sales everywhere except in vape shops.
“But it’s not too late,” said Stier. “In its new plan, the FDA should implement the legitimate common ground by taking the following three steps:
1: “Focus on the bad-actors. The FDA should act swiftly and forcefully, as it has the authority to do, against any retailer caught selling an e-cigarette to a minor.
2: “The FDA must work constructively with the industry it regulates.
3: “Make good on the promise to change misconceptions about nicotine, which, while addictive, is not the major cause of tobacco-related disease.”
Stier then moved on to what he believed the FDA should not do:
1: “Remove e-cigarettes from all stores except vape shops.
2: “Allow either side to erode common ground. Just as the FDA shouldn’t be lenient with those who sell or give e-cigarettes to kids, it shouldn’t allow false assertions about the risks of e-cigarettes to stand unchallenged.
3: “Fall prey to the notion that the FDA has in its power the ability to prevent every last youth from ever trying an e-cigarette.”
Stier said that when it gave the FDA authority to regulate recreational lower-risk nicotine products, Congress believed the FDA could be sophisticated enough to prevent youth use while helping adults quit smoking.
“Sadly, to date, the FDA has accomplished little on either front,” he said. “These failures don’t justify a misplaced ‘crackdown’ on e-cigarettes. They require an intensive focus on stopping the bad actors.
“If the FDA doesn’t get it right – this month – President Trump should ask, in an exit interview, why FDA leadership couldn’t achieve a central promise of the administration: improving our lives not with more regulation, but with less of it, wisely implemented.”PMI to webcast presentation
Philip Morris International is due to host at www.pmi.com/2018morganstanley a live audio webcast of a presentation and question-and-answer session by CFO Martin King at the Morgan Stanley Global Consumer and Retail Conference, starting about 09.20 Eastern Time on November 13.
The webcast, which will be in listen-only mode, will provide live audio of the entire PMI session.
The webcast may be accessed also on iOS or Android devices by downloading PMI’s free Investor Relations Mobile Application at www.pmi.com/irapp.
An archived copy of the webcast will be available until 17.00 on December 12 at www.pmi.com/2018morganstanley.
Presentation slides will be available at the same site.