China: Tobacco Industry of Yunnan Maintains Favorable Trend of Growth

Source from:  TobaccoChina Online 02/22/2013

The tobacco industry of southwest China's tobacco-producing Yunnan Province succeeded in maintaining the favorable trend of continued growth of economic efficiency and high quality of development in 2012, with the increment of taxes and profits outdoing the national average for the first time over recent years, and with the proportion of its taxes and profits from the production of both leaf tobacco and cigarettes in the national average for the first time ever going up significantly.

In 2012, the tobacco industry of Yunnan continued to take the lead in leaf tobacco production nationwide, with its leaf tobacco output hitting a new record high. In the year, the provincial tobacco industry actually purchased 21.74 million dan (1.087 million tons) of leaf tobacco from local tobacco growers; and sold 525.255 billion cigarettes (10.5051 million cases) made in Yunnan, up 2.5 percent year-on-year. The Yunnan-based cigarette making enterprises earned a total of 128.214 billion yuan (20.352 billion U.S. dollars) in gross industrial output value in 2012, up 15.8 percent year-on-year. The provincial tobacco industry generated a total of 126.789 billion yuan (20.126 billion U.S. dollars) in taxes and profits in 2012, a net increase of more than 20 billion yuan (3.18 billion U.S. dollars) over 2011.

In 2012, the tobacco growers in Yunnan earned a total of 25.42 billion yuan (4.035 billion U.S. dollars) in income, up 6.25 billion yuan (about 1 billion U.S. dollars), or 32.6 percent, year-on-year, with the average amount of income per tobacco-growing farm household reaching 22,400 yuan (3,556 U.S. dollars).

In 2012, the tobacco industry of Yunnan scored great success in the development of well-known cigarette brands. In the year, the provincial tobacco industry ranked the first in the tobacco industry of China in terms of the scope of cigarette brands, with the commercial sales volumes of its high-end and ultrahigh-end cigarettes respectively going up by 40.67 percent and 70.41 percent year-on-year. In the year, such high-end representative big competitive cigarette brands of the provincial tobacco industry as Yuxi (Farmstead) and Yunyan (Dachongjiu) were in favorable development, with the sales volume going up on a continued basis, and with realization of growth of both the output and sales volume of key cigarette brands. Enditem