The tobacco industry of China, in a process of fundamental structural reform since 2001, registered further improvement of its economic efficiency in 2008, with the production of 2.2 trillion cigarettes (44 million cases), and with the generation of 449.9 billion yuan (64.3 billion U.S. dollars) in manufacturing and commercial taxes and profits, up 61.9 billion yuan (8.84 billion U.S. dollar), or 16 percent, year-on-year.
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PRACTICAL PROGRESS IN DEVELOPMENT OF MODERN TOBACCO AGRICULTURE
In 2008, the tobacco industry of China made practical progress in the development of a modern tobacco agriculture, and realized full-scale promotion of leaf tobacco production in the country to a higher level.
In the year, the aggregate tobacco acreage in China reached 17.297 million mu (1.153 million hectares), in compliance with the annual leaf tobacco production quotas issued by the State for the year. The total leaf tobacco sales volume to the State is expected to reach 47 million dan (2.35 million tons) or higher in the year. Leaf tobacco production in China has remained stable for 11 consecutive years.
In 2008, the tobacco industry of China operated a number of pilot projects in the development of a modern tobacco agriculture in the country, investing 7.4 billion yuan (1.05 billion U.S. dollars) in exclusive funding for the construction of infrastructure facilities for leaf tobacco production, and accomplishing the construction of infrastructure facilities for 5.41 million mu (360,667 hectares) of tobacco-growing farmland, mainly including irrigation systems, mechanized farming paths and intensive curing barns. So far, the total area of basic tobacco-growing farmland with the required irrigation and drainage capacity in China has reached 25.5 million mu (1.7 million hectares).
In 2008, new progress was made in tobacco growing of scale, with the average tobacco acreage per household reaching 7.7 mu (0.513 hectare), up 2.3 mu (0.153 hectare) year-on-year.
In the year, the tobacco industry managed to further improve its specialized service for tobacco growers, leading to obvious growth of both leaf tobacco output and income of tobacco growers, with the average annual unit income from tobacco growing reaching 2,215 yuan (316 U.S. dollars) per mu (per 0.067 hectare), up 590 yuan (84 U.S. dollars) year-on-year, and with the average annual income per household reaching 17,096 yuan (2,442 U.S. dollars), up 8,352 yuan (1,193 U.S. dollars).
PROGRESS IN CONTINUED STRUCTURAL REFORM
In 2008, the tobacco industry of China continued to promote its reform in all aspects, keeping strengthening and improving the various systems and mechanisms. To facilitate the ongoing structural reform of the tobacco industry, the State Tobacco Monopoly Administration (STMA) - the regulator of the tobacco industry - issued the Opinions on Guiding the Work of Inter-Provincial Association and Restructuring of the Tobacco Industry. In the year, the tobacco industries of Guangdong Province in south China, Guangxi Region in southwest China, Zhejiang Province in east China and Gansu Province in northwest China realized inter-provincial association and restructuring. Meanwhile, Hongta Group, Hongyun Group and Honghe Group under Yunnan Provincial China Tobacco Industry Corporation in southwest China's Yunnan Province - the largest tobacco-producing region in China - were reincorporated into two new tobacco manufacturing enterprise groups on the basis of merger and restructuring.
So far, the total number of tobacco manufacturing enterprises in China has been reduced to 30, with new progress made in inter-provincial development of competitive cigarette brands and in the development of a modern enterprise system.
In 2008, the tobacco industry of China accelerated the process of developing international markets. In the year, it exported 738 million U.S. dollars worth of goods, up 22 percent year-on-year, and produced 15.84 billion cigarettes (1.584 million boxes) through its overseas operations, a sharp increase of 54.9 percent over 2007. Enditem
