JT to Ask Half of its Growers to Stop Cultivating Tobacco

Source from:  tobaccoreporter.com 08/09/2004

For the first time, Japan Tobacco (JT) will ask half of its domestic growers to stop growing tobacco. Some farmers over the age of 60 and those with tobacco fields below a certain size will be asked to stop growing tobacco beginning Jan. 1, 2005. JT said it will pay 20,000 yen (¥1=US$0.009) per 100 square meters in compensation to farmers who will stop growing. JT said that falling cigarette consumption and the prices of domestically-grown tobacco, which are high compared with prices of some foreign-grown tobacco, have prompted the reduction in growers. Legally, JT is obligated to buy all tobacco from its contracted growers. Enditem