China: Kingdom of Tobacco Actively Develops New Tobacco-Growing Areas

Source from:  TobaccoChina Online 09/02/2009

Southwest China's Yunnan Province - the largest tobacco-producing region in China known as the kingdom of tobacco - is actively taking steps to develop new tobacco-growing areas in addition to existing ones, to meet increasing demand for the supply of high-quality leaf tobacco for producing famous-brand cigarette products by Chinese tobacco manufacturers. The State Tobacco Monopoly Administration (STMA) - the regulator of China's tobacco industry - has agreed to extend powerful support to Yunnan Province in the development of new tobacco-growing areas. So far, delightful achievements have been made in the development of a system to guarantee the supply of high-quality leaf tobacco between existing tobacco-growing areas and tobacco manufacturers. High-quality leaf tobacco produced in four newly developed tobacco-growing areas in Wenshan, Baoshan, Pu'er and Lincang Prefectures of Yunnan Province has won recognition and approval by the manufacturers of such big Chinese cigarette brands as Chunghwa, Yunyan, Mount Hongtashan, the Yellow Crane Tower and Furongwang. So far in 2009, the annual leaf tobacco production quotas allocated for these four tobacco-growing areas have totaled 3.035 million dan (151,707 tons), an increase of 630,000 dan (31,500 tons), or 26 percent, over 2008. In efforts to meet increasing demand for the supply of high-quality leaf tobacco for producing famous-brand cigarette products, the provincial government of Yunnan, with the support of the STMA, has adopted the strategy of “developing new tobacco-growing areas while consolidating existing ones, and managed to promote the development of a system to guarantee the supply of high-quality leaf tobacco between existing tobacco-growing areas and tobacco manufacturers in Wenshan, Baoshan, Pu'er and Lincang Prefectures. On December 29, 2008, the STMA held a national-level symposium on the development of new tobacco-growing areas in Wenshan Prefecture, to make arrangements for the development of new tobacco-growing areas in Yunnan. In accordance with the requirement of the STMA, twelve counties in Wenshan, Baoshan, Pu'er and Lincang Prefectures have been in promotion of development of exclusive high-quality leaf tobacco production bases respectively with 11 big Chinese tobacco manufacturers - Shanghai Tobacco Group, Hunan Provincial China Tobacco Industry Corporation, Hubei Provincial China Tobacco Industry Corporation, Guangdong Provincial China Tobacco Industry Corporation, Henan Provincial China Tobacco Industry Corporation, Fujian Provincial China Tobacco Industry Corporation, Zhejiang Provincial China Tobacco Industry Corporation, Anhui Provincial China Tobacco Industry Corporation, Jiangsu Provincial China Tobacco Industry Corporation, the HongyunHonghe Tobacco Group and Hongta Group, to organize leaf tobacco production with unique characteristics by the unit. Moreover, in efforts to meet increasing demand for the supply of high-quality leaf tobacco for producing famous-brand cigarette products, in accordance with the policy of "concentrating tobacco-growing areas in counties, designating qualified townships to develop new tobacco-growing areas, and planning the development of new continuous tobacco growing areas in counties on a unified basis", and in light of the comprehensive planning for the development of new tobacco-growing areas and also the structure of new tobacco-growing areas, the tobacco industry of Yunnan has managed to reform the system of leaf tobacco purchase stations operated by tobacco manufacturers, and develop a new structure of exclusive high-quality leaf tobacco production bases with each unit capable of producing 50,000 dan (2,500 tons) leaf tobacco annually. So far, the 12 counties in Wenshan, Baoshan, Pu'er and Lincang Prefectures have signed agreements respectively with the 11 tobacco manufacturers to define the relationship between them in the establishment of exclusive high-quality leaf tobacco production bases. In this endeavor, the 12 counties in Wenshan, Baoshan, Pu'er and Lincang Prefectures have each established an administrative office for the development of exclusive high-quality leaf tobacco production bases and joint leaf tobacco raw material research laboratories to conduct the research and development of technologies for producing leaf tobacco with unique characteristics. Meanwhile, the 11 tobacco manufacturers and their support institutions have dispatched technicians to their production bases in the 12 counties, to directly get involved in determining tobacco varieties to be grown, formulating technical plans, making samples for leaf tobacco purchase, offering professional training of local workers engaged in the business of leaf tobacco purchase, assessing the quality of leaf tobacco, etc, which are all required processes in the purchase of leaf tobacco. As a result, all production bases have access to the technical support of technicians sent by the relevant tobacco manufacturers. Graders designated by the relevant tobacco manufacturers can arrive at the site of leaf tobacco purchase at any time while formulation technicians designated by them are stationed in leaf tobacco redrying enterprises to offer technical guidance. Because of these efforts, there has occurred a favorable situation of leaf tobacco production in Yunnan, in which the tobacco-growing areas and the relevant tobacco manufacturers jointly establish exclusive high-quality leaf tobacco production bases, jointly manage leaf tobacco production, jointly share resources, jointly develop competitive brands and jointly promote business development, to realize a win-win situation. Presently, the 12 counties in Wenshan, Baoshan, Pu'er and Lincang Prefectures are enjoying favorable growth of tobacco in their fields, with development of the new tobacco-growing areas in them in a fine situation of development. Enditem