China's Largest Oriental Tobacco Production, Export Base Established

Source from:  Xinhua News Agency 07/09/2004

The largest oriental tobacco production and export base in China has been established in Baoshan City of southwest China's Yunnan Province, known as the kingdom of tobacco in China. So far, oriental tobacco produced in Baoshan has taken over 70 percent of the market shares in China. Besides, for nine consecutive years, Baoshan has been the largest Chinese exporter of oriental tobacco. [img border=0 hspace="4" vspace="4" align="left" src=http://www.tobaccochina.com/english/picture/0406232kjtp2.jpg] According to sources with Yunnan Baoshan Oriental Tobacco Co., Ltd., Baoshan grew 301,000 mu (20,067 hectares) of oriental tobacco and sold 27,000 tons of oriental tobacco leaves to the State from 1995 to 2003. The number of Chinese tobacco manufacturing enterprises using oriental tobacco produced in Baoshan has reached 36, accounting for 70 percent of the domestic users of oriental tobacco. From 1995 to 2003, Baoshan exported 13,600 tons of oriental tobacco, earning 42.38 million U.S. dollars. The city has established long-term relations of oriental tobacco supply with a number of users in China and other countries. Over the past three years, the sales of oriental tobacco produced in Baoshan has increased rapidly. In 2002, the city sold 2,900 tons of oriental tobacco, with the export volume reaching 2,160 tons. As a result, Baoshan City earned 6.66 million U.S. dollars from the export of oriental tobacco in the year alone. In 2003, the city's oriental tobacco sales volume reached 3,648 tons, with the export volume reaching 3,138 tons, generating 10.9 million U.S. dollars in the export trade. So far in 2004, Baoshan has received orders from domestic users for the supply of 4,400 tons of oriental tobacco, and also orders for oriental tobacco exports totaling 3,900 tons. The city's oriental tobacco exports this year is expected to reach 12 million U.S. dollars. Also known as Turkish tobacco, oriental tobacco is an important raw material indispensable for the production of blend-type cigarettes, accounting for 5 percent to 15 percent of the cut tobacco in blend-type cigarettes. Originally grown in the Balkan Peninsula on the Mediterranean, oriental tobacco is of a small trunk and caudex, small but thick leaves and rich aromas, with a big capacity against drought. Oriental tobacco is suitable to grow under natural conditions with high temperatures, less precipitation, sufficient sunshine and a big difference in temperatures between the day and night. Under support from the STMA, Baoshan City introduced oriental tobacco from Greece in 1989. It succeeded in growing oriental tobacco after experiments for six years in a river valley area. In an effort to meet the growing market demand for oriental tobacco, Baoshan is planning to increase the area of oriental tobacco plantations in the city to a total of 60,000 mu (4,000 hectares) by the end of 2006, with its annual oriental tobacco leaf yield expected to reach 6,000 tons and the annual oriental tobacco leaf export volume expected to reach 5,000 tons. Enditem