STMA Holds National Tobacco Work Conference

01/19/2009

The State Tobacco Monopoly Administration (STMA) - the regulator of China's tobacco industry - held a national tobacco work conference in Beijing on January 13, to sum up the results of tobacco production and marketing in 2008 and make arrangements for the fulfillment of tasks of tobacco production and marketing in 2009. Jiang Chengkang, director-general of the STMA and general manager of China National Tobacco Corporation, delivered a keynote address to the meeting. SUMMARIZATION OF OPERATION OF CHINA'S TOBACCO INDUSTRY IN 2008 In his address, the STMA chief said that in 2008, the tobacco industry of China generated 449.941 billion yuan (64.28 billion U.S. dollars) in taxes and profits, an increase of 61.161 billion yuan (8.737 billion U.S. dollars), or 15.73 percent, over 2007, with the amount of manufacturing and commercial taxes reaching 264.086 billion yuan (37.73 billion U.S. dollars), up 34.675 billion yuan (4.95 billion U.S. dollars), or 15.11 percent, year-on-year, and with the amount of manufacturing and commercial profits reaching 185.855 billion yuan (26.55 billion U.S. dollars), up 26.486 billion yuan (3.78 billion U.S. dollars), or 16.62 percent, year-on-year. In the year, 2.2429 million tobacco growing and sales contracts were signed, down 607,000 year-on-year. The actual tobacco acreage in China stood at 17.297 million mu (1.153 million hectares), in compliance with the annual production quotas issued by the State. By the end of December 2008, the State had purchased 47.59 million dan (2.3759 million tons) of leaf tobacco from tobacco growers nationwide. Leaf tobacco production in China has remained stable for 11 consecutive years. In 2008, the tobacco monopoly administrative authorities across China meticulously organized the operation of 135 pilot projects of developing a modern tobacco agriculture in China, including four directly under the auspices of the STMA. In the year, the average tobacco acreage per tobacco-growing farm household reached 7.71 mu (0.514 hectare), up 2.33 mu (0.155 hectare) year-on-year. Nationwide, there were 3,736 tobacco-growing farm households each with an acreage of 100 mu (6.67 hectares) or more, 9,336 each with an acreage of 50 mu (3.33 hectares) to 100 mu (6.67 hectares), and 26,958 each with an acreage of 30 mu (2 hectares) to 50 mu (3.33 hectares). In 2008, the tobacco monopoly administrative authorities nationwide managed to further improve their provision of specialized service for tobacco growers, contributing to obviously increasing production and output. In the year, the acreage of farmland for developing tobacco seedlings for commercial supply reached 14 million mu (933,000 hectares), accounting for 81 percent of the total acreage of farmland for developing tobacco seedlings, up 12 percent year-on-year. The rate of mechanized operation in soil turning and ridge forming respectively reached 49 percent and 35 percent, both up 20 percent year-on-year. The average annual unit income from tobacco growing reached 2,214.81 yuan (316.4 U.S. dollars) per mu (0.067 hectare) in 2008, up 590.13 yuan (84.3 U.S. dollars) year-on-year. Nationwide, the average annual per capita income from tobacco growing reached 17,096.12 yuan (2,442.3 U.S. dollars), up 8,352.15 yuan (121.73 U.S. dollars) year-on-year. GENERAL REQUIREMENTS FOR OPERATION IN 2009 In his address, the STMA director-general also analyzed a number of new contractions and problems facing the tobacco industry, in light of both the domestic and international economic situations, and put forward a package of general requirements for operation of the tobacco industry in 2009: Prevention of overheating in tobacco production, promotion of cigarette production to a higher level and maintenance of growth in taxes and profits will be the primary tasks of the tobacco industry of China in 2009. To this effect, efforts will be made to continue deepening the ongoing structural reform, keep improving the structure of tobacco products, strengthen management on a full scale and intensify independent technological innovation, in striving to realize sustainable and sound development of the tobacco industry. Major targets for production and marketing by the tobacco industry of China in 2009 are to grow 16.58 million mu (1.05 hectares) of tobacco and purchase from tobacco growers 2.2695 million tons of leaf tobacco, including 191,000 tons of leaf tobacco for export and 84,000 tons of sun-cured and air-cured leaf tobacco. In 2009, the tobacco industry of China will produce and sell 2.25 trillion cigarettes (45 million cases), including 535 billion low-grade cigarettes (10.7 million cases), with the annual amount of manufacturing and commercial taxes and profits expected to maintain a growth rate of 10 percent or higher. Enditem