WORLD DEVELOPMENTS
Italy: Italian leaf production in 2001 is estimated at 130,000 metric tons, unchanged from 2000 and within the allotted EU quota. Export levels are expected to decline slightly due to decreased sales of burley. Sources expected that strong competition from Malawi will affect burley sales. IT1009
Russia: Cigarette and papirosa production is forecast to increase slightly in 2001. Last year cigarette and papirosa production increased by 16 percent to reach 310 billion pieces. As a result of increased cigarette production in 2000, leaf imports increased by nearly 8 percent. The United States moved from the 11th largest supplier of leaf to Russia in 1999 to the 6th largest supplier in 2000. For 2001, Russian leaf imports are forecast at close to 300,000 tons, up 5 percent from 2000. RS1013
Spain: The contract license agreement under which Altadis produces American blend cigarettes in mainland Spain was revised with Philip Morris and canceled with Japan Tobacco Inc. in order to comply with European legislation. As a result of the changes, Altadis will decrease production of Marlboro and L&M, and end production of Winston, Camel, and Gold Coast brands. The agreement is expected to dampen U.S. leaf imports to Spain over the next few years. SP1017
U.S. DEVELOPMENTS
USDA Announces Preliminary Tobacco Referenda Results: Pennsylvania growers of cigar filler (type 41), Connecticut and Massachusetts growers of cigar binder (type 51 and 52), and growers of Maryland type tobacco (type 32) all voted against quotas for marketing years 2001, 2002, and 2003. Virginia growers of sun-cured (type 37) voted in favor of quotas. PR1505
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