Indonesia: Total leaf production is expected to increase in 1999 as demand from the Indonesian cigarette industry remains strong and yields continue to improve. Leaf production is expected to reach 210,000 metric tons, up about 4 percent in 1999 as a result of attractive grower prices. Cigarette production is forecast to total 219.2 billion pieces in 1999. Increased cigarette prices are not expected to dampen cigarette sales. Domestic cigarette consumption is estimated to increase marginally to 207.6 billion pieces. However, leaf exports continue to decline due to the Asian financial crisis. Leaf imports are estimated to decline by 11.2 percent in 1999, or 15,000 metric tons. Sources attributed this decline to the devalued Rupiah.
Germany: Since Germany is a small producer of leaf tobacco, it depends heavily on imports to support its cigarette industry. Leaf imports are forecast to decline slightly in 1999, to 220,000 metric tons. Cigarette production this year is expected to remain flat at 181 billion pieces, while cigarette demand is projected to increase by 4.5 percent. The recent influx of immigrants from Eastern Europe and the States of the former Soviet Union are pushing cigarette sales higher. Cigarette exports are estimated to decline by nearly 10 percent in 1999.
Germanys cigar industry continues to grow. Cigar demand is estimated to increase by 7 percent in 1999 and push cigar production up nearly 8 percent. Exports reached a record high of 2.2 million pieces in 1998, a 42-percent increase. For 1999, cigar exports are forecast to grow marginally.
United Kingdom: Leaf imports are expected to total 147,000 metric tons in 1999, down 2 percent. This decrease is due to lower demand for all manufactured tobacco products. Tobacco manufactures are also expected to utilize leaf stocks in order to reduce carry-over into 2000. The U.Ks cigarette production is projected to fall by 5 percent to 155 billion pieces in 1999 as a result of higher taxes. Sources expect that higher taxation will cause smokers to switch to low tar brands or to hand-rolling tobacco.
Malawi Tobacco Auction Update: Through the 5th week, the Malawi Tobacco Control Commission reported 1,101 metric tons of flue-cured tobacco were sold at auction in Malawi. Last year 1,598 metric tons were sold in the same number of weeks. Flue-cured prices were 23 percent higher than last year at US$1.36 per kilogram. Burley sales in the first 5 weeks of this year's Malawi auction season totaled 5,660 metric tons, 3 percent lower than last year. Prices for burley were US$1.51 per kilogram, down about 24 percent from last season.
Zimbabwe Tobacco Auction Update: Zimbabwes Tobacco Marketing Board reported that 12,619 metric tons of flue-cured tobacco were sold during the first five weeks of the auction season. The average price for flue-cured tobacco so far was $US 1.39 per kilogram.
USDA Announces Assessments on Imported Flue-Cured Tobacco: The U.S. Department of Agricultures Commodity Credit Corporation announced on June 14, 1999 assessment rates to be effective July 1st on unmanufactured flue-cured tobacco imported for consumption. The assessment rates are the same as for domestically produced flue-cured and will remain in effect through June 30, 2000. The flue-cured tobacco importer assessment rate is $4.4 cents per kilogram. The total amount of the assessment is due within 10 business days after the imported tobacco is released by the U.S. Customs Service for entry for consumption into the commerce of the United States. Failure to pay or timely pay the amount of the assessment can result in a marketing penalty of $2.91 per kilogram for the amount of the flue-cured tobacco on which such failure occurred. Penalty rates for burley and other kinds of tobacco that are subject to importer assessments will be announced by October 1, 1999.
U.S. TRADE SUMMARY FOR JANUARY-APRIL 1999
U.S. unmanufactured tobacco exports for January-April 1999 totaled 87,335 metric tons, valued at $554 million. This represents a 3-percent decrease in quantity and a nearly 5 percent decrease in value when compared to January-April 1998. The leading U.S. leaf export markets so far in 1999 are: the European Union, 44,537 tons; Japan, 21,112 tons; Turkey, 2,674 tons; the Russian Federation, 2,666 tons; Thailand, 2,609 tons; and Malaysia, 1,690 tons.
Flue-cured exports for January-April 1999 reached 43,802 metric tons, valued at $302 million. This is up 3 percent in quantity and down nearly 6 value from January-April 1998. The leading U.S. flue-cured export markets so far in 1999 are: the European Union, 20,089 tons; Japan, 13,947 tons; Korea, 2,478 tons; and Malaysia, 1,209 tons.
Burley exports for January-April 1999 totaled 20,387 tons, valued at $166.2 million, down 11.3 percent in quantity and 7.4 percent in value from January-April 1998. The leading U.S. burley export markets so far in 1998 are: the European Union, 13,265 tons; Japan, 2,715 tons; Thailand, 1,596 tons; and Turkey, 1,189 tons.
U.S. cigarette exports in January-April 1999 totaled 55.9 billion pieces, valued at $1.21 billion, down nearly 16 percent in quantity and nearly 12 percent in value from January-April 1998. The leading U.S. cigarette export markets so far in 1999 are: Japan, 24.3 billion pieces; the European Union, 12.1 billion pieces (to mainly Belgium/Luxembourg which is a major transshipment point for exports to other European markets); Lebanon, 3.3 billion pieces; Saudi Arabia, 2.7 billion pieces; Israel 1.5 billion pieces; and Singapore, 1.4 billion pieces.
U.S. exports of bulk smoking tobacco for January-April 1999 totaled 20,138 metric tons, valued at $172 million, down 8 percent in quantity and 4 percent in value from January-April 1998. The leading export markets so far in 1999 are: the European Union,6,410 tons; Turkey, 2,991 tons; Poland, 2,530 tons; Egypt, 1,873 tons; and Japan, 1,673 tons.
U.S. unmanufactured tobacco imports for consumption (duty paid) for January-April 1999 totaled 71,327 tons, valued at $265 million, down 17 percent in quantity and down 16 percent in value when compared to January-April 1998. Imports of oriental tobacco, the leading tobacco type imported by the United States, reached 22,645 tons, valued at $115 million so far in 1999, down 43 percent in quantity and down 42 percent in value when compared to the same period in 1998. Flue-cured imports so far in 1999 totaled 18,373 tons, valued at $61 million, up 45 percent in quantity and up 49 percent in value from January-April 1998. Burley imports for the first four months of 1999 totaled 13,912 tons, valued at $46 million, up 46 percent in quantity and up 52 percent in value from the same four month period in 1998. U.S. imports of stems and scrap tobacco so far in 1999 total 7,964 tons, valued at $3.9 million, down 30 percent in quantity and down 24 percent in value from the same four month period in 1998. So far in 1999, the leading suppliers to the U.S. of unmanufactured tobacco imports for consumption are:Turkey, 16,389 tons; Brazil, 12,907 tons; Malawi, 8,011 tons; Canada, 5,861 tons; the European Union, 5,579 tons; Zimbabwe, 3,781 tons; and the Dominican Republic, 3,018 tons.
U.S. general imports (actual arrivals) of unmanufactured tobacco so far in 1999 totaled 71,623 tons, valued at $242 million. This represents a 19- percent decrease in quantity and 23- percent decrease in value from the same period in 1998.
1 Metric Ton = 2,204.622 Pounds
1 Pound = 0.0004536 Metric Tons
1 Kilogram = 2.2046 Pounds
1 Pound = 0.4535924 Kilograms
1 Hectare = 2.471 Acres
1 Acre = 0.4047 Hectares
Dry Weight (DW) = 88 to 92 percent of Farm Sales Weight (FSW) 1/
1/ Unmanufactured tobacco's conversion from dry weight to farm sales weight varies depending on a country's cultivation and processing conditions and practices. The average conversion factor ranges from 88 to 92 percent, but it can be as low as 60 percent.