Leaf Tobacco Production in China in Stable Development: Tobacco Conference

12/11/2006

Leaf tobacco production in China has been in stable development so far in 2006 - the ninth consecutive year - with the tobacco acreage in the whole of China reaching 15.72 million mu (1.048 million hectares), down 1.02 million mu (68,000 hectares) year-on-year, and with the State leaf tobacco purchase in the country estimated at 41 million dan (205,000 tons), a quantity well within the State-issued annual production quotas, according to data released at a recent leaf tobacco work conference. On October 25-27, the 2006 annual national leaf tobacco work conference was held in the capital city of Beijing, to sum up the production and State purchase of leaf tobacco in China in 2006, and plan leaf tobacco production in 2007. In an dress to the conference, Zhao Zhenshan, general manager of China National Leaf Tobacco Corporation, said extensive application of the contract system and efforts to strengthen quality control over the whole process of tobacco growing played a key role in well organizing leaf tobacco production in accordance with the State-issued annual leaf tobacco production quotas for the year. In 2006, the tobacco industry has managed to unify the format of the "Leaf Tobacco Growing and State Purchase Contract". As a result of extensive application of the contract system, farmers in all tobacco-growing regions in China have signed contracts for leaf tobacco production with local tobacco companies strictly in accordance with the production quotas allocated to them. The contracts signed between farmers and local tobacco companies specifically defined the rights and obligations of both sides concerning leaf tobacco production and sales. For local tobacco companies, they have managed to standardize the procedure for the conclusion of contracts and unify the timing for signing contracts. The basic role of contracts in organizing leaf tobacco production has been further strengthened. Some tobacco-growing regions have established the system of making public all the contracts signed and reporting information on the fulfillment of contracts to the public once every 10 years, contributing to improving the measures for managing contracts. Other regions have introduced the system of electronic contracts on a trial basis, achieving positive results. Strictly in accordance with the contracts signed with farmers, local tobacco companies in all tobacco-growing regions have taken steps to strengthen control over all key processes of production and trade, including the reservation of fields for tobacco growing, supply of tobacco seeds, development of tobacco seedlings, distribution of farm supplies, transplantation of tobacco seedlings onto fields and State purchase of leaf tobacco. Meanwhile, they have adopted measures to effectively put an end to production in excess of annual production quotas or in violation of contracts already signed. In distributing farm supplies for tobacco production to farmers, they would direct transport the supplies to the fields. After the transplantation of tobacco seedlings onto fields, they would organize verification in a household-by-household and plot-by-plot way, to ensure the fulfillment of contracts and production strictly in accordance with annual production quotas issued by the State. In the harvest season, they would organize leaf tobacco purchase from all tobacco growers strictly in accordance with the contracts signed, and would reject all leaf tobacco uncovered by contracts. Generally speaking, all tobacco growers have been required to sign contracts with local tobacco companies, and all leaf tobacco purchase organized by local tobacco companies has been conducted strictly in accordance with contracts signed. In 1997, there were serious overproduction and oversupply of leaf tobacco in China, as a result of leaf tobacco growing and purchase in serious violation of production quotas issued by the State. Therefore, the stability in both production and supply in China over the past nine years has been largely attributed to efforts of the State Tobacco Monopoly Administration to "control the total quantity and stabilize the scope" by strengthening application of the contract system and strengthen process control. Enditem