Y - USDA Economics, Statistics and Market Information System
Transcription
Y - USDA Economics, Statistics and Market Information System
FOR RELEASE 1/te TOBACCO SITUATION TS-72 JUNE 10., A.M. 1955 .h~-" ~RT R-; MANN LIBRJ>J.(YJ ... ~--------8§~. --------~ SUPPLY AND DISAPPEARANCE OF FLUE-CURED AND BURLEY TOBACCO Bl L. LBS. 4 BURLEY--~ FLUE-CURED 1 o~~~""""""~~~--~~~~~~~~~~ 1947-48 1951-52 1947-48 1951-52 1955-56 DA. TA. FOR 1954·55 ARE PREL.IMIH4RY ESTIMA. TES U.S. DEPARTMENT OF AGRICULTURE NEG. 1674 ... 55 (5). During the July 1954-June 1955 marketing year, the disappearance of flue-cured is likely to total a little more than in 1953-54 because of increased exports. For burley, disappearance in October 1954-September 1955 is expected to total slightly more than in the preceding year. Exports account for over 35 percent of flue-cured disappearance and about 7 percent of burley. AGRICULTURAL MARKETING SERVICE Domestic use of both kinds (mainly in cigarettes) is expected to be approximately the same as in 1953-54. The 1954-55 supplies of flue-cured and burley exceed 1953-54 by 3 and 8 percent, and carryovers at the outset of 1955-56 will be at record highs. Acreage allotments have been reduced (sharply for burley) and smaller crops are expected this year than last. UNITED STATES DEPARTMENT OF AGRICULTURE AGRICULTURAL MARKETING SERVICE A.GR:ICUL.TURE • WASHINGTON If)) 71 3; /JJ..7 TS-72 - 2STATISTICAL SUMMARY Average prices at auctions Flue-cured Burley Maryland Fire-cured Dark air-cured (35-.36) Virginia sun-cured (37) I Jan, per per per per per per lb,z lb.: lbol lb. a lbol lbol 30.7 1955 Mar, Feb. I ' 1Cants 1Cants !Cents 1Cants i Cents tCents Parity prices Flue-cured Burley Mazyland Fire-cured Dark air-cured (35-36) Virginia sun-cured ( 37) Parity index 1954 Unit or base period \ Item Apr. Jan. c- I I I r Cllnts rCents 1Cents 1Cants 1Cents per per per per per 10IInts per lb. 1 lb. t lb.r lb.r lb.1 lb.t 5.3.0 51.3 53.9 I I I I I I I 53,2 53.0 Sl-.3 5.3.2 51.5 53.9 51.5 54.1 34.8 29.4 34.5 54.1 .34.8 29.4 34.5• I I 34.7 29 • .3 34.4 I Y I Tax-paid removals Cigarettes, small Cigars, large Chelling and smoking Snuff Accumulated frODI Jan, l Cigarettes, lllllllll Cig&IS, large Chewing and aold.ng Snuff 1910-14•100 I I 88 per1 centage 10! a year 1 earlier Apr. Mar. c-1-o-s-e-d 31.9 c-1-o-s-e-d 47.2 40.9 c-1-o-s-e-d 37.0 37.8 34.7 closed c-1-o-s-e-d .30.0 .34.5 32.2 26.6 c-1-o-s-e-d 1 - o - s - e - d c-1-o-s-e-d 45.5 c - 1 -o- s - e - d 30.0- closed 34.1 32.6 2).1 c-1-o-s-e-d 27.1 25.8 C-1-o-s-e-d 31.5 50.9 Feb. 282 282 282 28.3 28.9 402 11.8 3.2 26.7 407 11.6 3.1 32 • .3 477 14• .3 3.8 14.1 3.3 87.9 1,286 .37.7 10.1 118,4 I 1,732 I 51.8 s 13.4 I 53o5 50.9 5.3.5 50.9 54.1 5.3.7 104 90 116 111 103 101 .30.3 34.0 54.1 .35.7 ,30 • .3 34.0 51.1 54.2 35.8 ,30.4 34.1 5.3.7 51.1 54.2 .35.8 .30.4 34.1 100 10.3 103 283 28.3 264 284 101 .30.4 408 12.7 3.2 28.7 400 11.7 3.3 3i~ 104 14.5 3.7 101 97 .30.4 406 12.1 3.2 59.1 608 24.4 92.6 1,276 ,38.9 10.2 106 2.6 6.4 .3 2.5 8.6 .4 6.5 2.6 6.4 5.1 15.2 7.8 21.7 110 95 260.6 103 99 99 I Billion Million Mil. lb. Mil. lb. I I .30.51 446 I I ! 96 I Billion Million Mil. lb. Mil. lb. u.s 3.2 23.4 6.3 Billion MUllon Milo lbo 2.7 10.9 o3 2,6 12.2 .4 2.9 6.7 2,) 7,2 .5 ,J Billion KLllion Mil. lb. 2.7 l0o9 5.3 8.2 29.8 26.9 402 55.6 609 6.5 99 103 101 I Tax-free rsmovalll Cigarettes 1 BDI8l.l. Cigars, large Chewing and lllftoking Accumulated from Jan. 1 Cigarettes 1 small Cigars, large Cbewing and smoking I I I Dispoaable personalin~/1 Index of industrial production I I y .J 23.1 .:z Bil, dol. :1..2 I I I I 10.7 s 37,0 I J..5 I .3 .z 252.3 1947•49•100 125 125 12.3 12.3 I I 93 2.7 97 60 .3 73 ~3 132 133 1.35 1,36 111 60.2 59.9 60.5 61.7 22·4 102 101 I Employment tabor force employed Exports (flmi-eales vt.) Flue-cured Burley Maeyland Fire-cured Dark air-cured Cigar Accumulated from bsginDing of aarketias yr. Flue-cured Burley Maryland Fire-cured Dark air-cured Cigar filler and binder Cigar wrapper General im~rts, all CO!ll!lodit e8 Accumulated from Jan, 1 Starling area gold and dollar reserves 2/ !if Stocks of domestic types (farm-salea weight) §/ Flue-cured Burley Maryland !"ire-cured Dark air-cured Cigar, filler Cigar, binder Cigar, wrapper I Million 59.6 ~rcent 25.1 60.1 24.2 60,1 24.2 60.6 24,6 29.8 1 • .3 16.9 1.8 19.1 1.8 .l 2.3 .8 .l 21,2 4,4 l,l 2,8 I I o5 I Mil. Milo Mil. Milo Mil. Mil. lb. lb. lb. lbo lb. lb. I I .4 I 1.3 .5 .s 1 .s 1.2 .4 .5 1 I I I I I I I .61 2!!·1 28.1 3ol .5 1.5 .6 .4 2~·1 22·0 24.3 2.9 .4 2.2 1.0 27.3 14.3 5.3 .9 900 .s 4.3 2.9 .4 187 ,362 400 .344.6 l2o7 3.8 11.7 4.3 1.0 .371.8 18.1 4.7 16.0 7.2 1.0 101 147 162 125 195 2.~ la;!, 294 I Mil. Mil. Mil. Mil. Mil. Mil. Mil, lb. lb. lb. lb. lb. lb. lbe 3.30.6 8.7 2.3 I I 366.6 12.3 2.9 12.8 3.7 1.4 2a!.! 347.5 lO,S 2.8 10.5 2.9 1.4 2a6 83J 833 609 1,642 2z543 2 2583 9.3 2.5 l.l Milo dolo MU. dol, 387o6 I 16.61 4,0 I J$e6 I 4.2 I 1.6• 320.3 9.9 3.4 9.5 3.3 .a 7l 11~ J.J. I ~.~ 862 2,504 957t .3,46lr 870 870 850 1,720 1,019 2,738 3,595 2t685 2a820 • 2zZ63 21681 2 1667 2!686 g.7 I BS7 I I Mil. dol. I 90 104 95_ I Mil. Mil. Mil. Mil. Mil. Mil. Mil. Mil. lb. lb. lb. lb. lb. lb. lb. lb. I I I 2,411 1,.308 65 135 75 167 126 I 26 I I 2,178 1,475• )8 I 1631 911 2081 l4l t 221 2,$$3 1,4.37 69 124 64 158 117 26 2,.301 1,611 60 165 93 213 l4l 22 106 109 103 101 102 102 100 100 1/ Prices paid, interest, taxes, and flll'lll wage rates, 2/ Quarterly~ual ratei eell,llonallv adjusted. 3/ seasonally adjusted. d July 1 for nue-cured and cigar wrapper and October I for ather · s. 51 He d in London. 6/ Deala:i'ii• and manufacturers' bOl ·• Ings in United States and Pllerto Rico on first ds;y of quarter. - Ti./ TS-72 - .3 ---~---~------------ Approved by the Outlook and Situation Board, June .3 1 1955 . CONTENTS : : :Sumznary •••• e . . . . . . . "' • • e. • • • • • trcbacco products ••••••••••• :Cigarettes ~····••••••••o•• 1 Cigars •••••••••••••••••••• :smoking··················~ Page= -· 20-36.; ~.! 3- 5 outlook & situation--leaf tab~ 5-11 Flue-cured, types 11-14 ••••• 20-22: ,_ 7 B~r~ey,, type 31 ••••••••••••• 22-24, 7- 9 M~lapdj type 32 eoeoo6o•••ll 24-26: f. 9-10 10-11 : Chewing •••••••••••••••••G& 11 I Snuff •••••••••••••••••••~o :Exports of u.s. tobacco ·~• 11-15 : British tobacco r situation •••••••••••••••• 15-17 :Imports & stocks in u, So •• 17-19 mecent changes in tob, leg, • 19-20 ', I< ' Fire,;.cti:red, types 21--23 • , .... Dark:~ir~cured and sun-cured, types -'35-37 ••••••••• • ••• • "• Cig~, ~ypes 41-62 •••••••••• Tabl~~~~Acres, yields, cash receip·~s, Into Rev, collections, and mfrs9t profits •• Export values per pound ••••• 26-29t i 29-Jl: 31-.36: : .37-40: ... 41-48: SUMMARY Domestic consumption of flue-cured, the leading cigarette tobacco, during the July 1954-June 1955 marketing year seems likely to be slightly • 1 less than a year earlier, However, exports are expected to total about '' 5 percent larger and ;-aise total disappearance a little above that of · 19:53-54. Exports of flue-cured will account for about 37 percent of its total disappearance and over four.-fifths of the total exports of unmanufactured tobacco. ' '· · Domestic consumption of burley, the second ranking cigarette tobacco, in October 1954-september 1955 may be slightly above that of a ·--year earliero Sizable quantities of burley are also used in the manufacture 'of pipe and chewing tobacco. E~orts of burley are also likely to be above a year earlier and will probab~y account for over 7 percent of its total disappearancee For Maryland, fire-cured, dark air-cured, cigar binder, and. shadegrown cigar wrapper, the 1954-55 domestic use of each is expected to be •about the same as in 1953-54 but for the continental cigar filler types, may be smaller than a year earlier. The principal domestic outlet for -.::Maryland tobacco is cigarettes J for fire-curedJ snuff; and for dark aircured, chewing tobacco. In the current marketing. year, exports of each of these kinds of tobacco except cigar filler and binder are likely to exceed those of a year earlier. Cigar•tte output during the fiscal year ending June .30, 1955, is est:f.ma,ted at 406 blllion--a.bout 2 percent J.ower t.han in 195.3-54. In the TS-72 .. 4 .- year ahead_, cigarette cons~ption is expected to be about the same "'r per .. haps a little higher~ During· the current fiscal year, retail prices have increased for several leading king size~ nonfilter brands, due to price advances by manufacturers. In a few areas, higher State and local tax levies raised'retail prices for all cigarettes~ Cigar consumption in 1954-55 is ~stimated at about 6,055 million, slightly lower than in 1953-54~ Cigars are expected to continue above the 6-billion level in the year ahead~ The current fiscal year output of smoking tobacco estimated at 84 3/4 million pounds is 2 percent greater than in 1953-54, and is expected to continue at about this level in the year ~head, Thi$ is the first halt in the decline for smoking tobacco in several years • Chewing tobacco output in i954-55 probably will be around·_· 81 million pounds--2 percent less than a year earliero A further gradual' decrease seems likely~ The 1954-55 output of snuff, estimated at about _ 38.8 million, is nearly the same as in 1953-54 and probably will not var,y much from this level in the year ahead, In the year ending June 30, 1955, total leaf tobacco exports are expected to approach 555 million pounds (farm-sales weight) compared with 512 million in 1953-54Q Tobacco eiports may increase further in 1955-56, some of this will be due to operations under the Agricultural Trade Development arid .t'ssistance .P.ct ( P~ 'L"' 480), which provides for the acceptance of foreign currencies for surplus agricultural products under certain conditions. · In general, economic conditions abroad appear favorable to increased tobacco consumption, and there is a need for larger tobacco stocks in several countries. However, competition from foreign producing areas is increasing, . especially from Rhod.esia and Canada which are growing and shipping considerably more fl~e.:.cured tobacco than a few years ago. · · The 1955 acreage allotments for flue-cured, burley, fire-cured, and·~ dark air-cured tobacco are smaller than a year ago. Assuming per acre yi~lds for flue-cured are· near the average for recent years, it is probable that_ this ye~'s crop 5 together with the carryover, will provide a slightly largertota.l supply for 1955-56 than the record of 1954-55. A redetermination of the originally announced 1955 burley quota (as authorized by new legislation· in'March) and the subsequent overwhelming approval by growers have placed into' effect sharply reduced burley allotments, The 1955-56 ,. total burley supply may be down about 5 percent from the very high 1954-55 ~' figure. The total supplies of fire-cured and dark air-cured tobaccos for · 1955-56 seem likely to be a little lower than for 1954-55. The 1955 acreage allotments of cigar filler and binder types ( 42-44' ·~nd 51-55) are about the same as in 1954. Pennsylvania cigar filler (type 41) and Maryland tobacco (type 32) are not under quotas. The 1955-56, total suppliesof the continental cigar filler t7pes and also the combined ,binder types probably will be smaller than for 1954-55 and below any previous year. Maryland supplies seem likely to be at least as large as , for the· current year. The total supply of domestic shade-grown wrapper · for 1955-56 may be a little smaller than for 1954-55. · Government price supports for the types under marketing quotas will be 90 percent of _parity except for fire-cured (7$ percent of the burley loan l'evel) and dark air- and sun-cured ( 66 2/3 percent of the burley loan ... 5 .,. TS-72 level)~ The minimum levels of price supptrt for the 1955 crops announced in early Aprir=by the Department of ftgriculture are close to the pric9 supports for the 1954 crops, In eyery i.r."'!sta.nce il th.e differences from 1954 supports are less than1br£e"fcurths of a cent and mostly less than onehalf cent per pound~ If the pa1~ty prices for the tobaccos eligible for price support should increase by the begL~ning of the 1955-56 marketing years, the actual price support levels will be recomputed to reflect the increaseso u-tEe parities should decline~ the mini.'lll..llllS become the actual support levels for the 195$ cropsiJ -- TOBACCO PRODUCTS Cigarettes Cigarette output in the United States during the fiscal year endiiig June 30, 1955 1 is estimated at 406 billion--about 2 percent lower than in 1953-54~ Consumption in this country will probably account fer nearly 92 percent of the total. Most of the remaining 8 percent will be used by overseas forces or exported commercia.llyo In the yea:r ahead, cigarette consumption is expected to be at least as much as estimated for 1954-55 and may increase a little. Table 1Q- Cigarettes: Output, domestic consumption .and exports,, for specified periods Total Period outp~t : Billions Average: 1935..,39 1940..44 157e0 7~2 33~3 5~5 5~8 332.,2 350e0 369e7 386g8 385oO 267(i2 321c7 33So4 348e5 351Q8 6$o0 30o7 34c3 6e9 24G1 22o8 25,2 19.5 392o0 418e8 J60o2 223~5 ~ 1945 1946 1947 1948 1949 1950 1951 19.52 4350~ 423~1 19.53 1954 Domestic I Tax-free removals 5./ __.,.~.!lll} .. ption :.--~ ~---- ___ ;cons : l.f T cta....l.___~E=-=Xl2"'=orts Bil:Lions . Billions Eillio:i1S ~ '•' 't•!. Year begi;nning July 19.50 : : 379~7 394~1 38~7 33e2 31.8 38~9 14o3 16e8 40e0 16~4 37QO l6a2 40lo9 368o6 33.,2 15~4 --...;._-...,Fiscal year----J86o8 ---- --- 15Q5 369112 407o3 19.51 . 161)5 42241 384oO 19.52 17o0 436o6 396o9 19.53 15.,6 413o6 35o5 377o7 19.54 3/ 406,0 373QO 33o0 15o3 !/ As indicated by tax-paid removals" 2/ In addition to exports, tax~ee removals include principally shipmerits to forces overseas .9 to United States possessions, and shipst stores. 1( Prelimin~ estimates. Basic data but not the estimates compiled from reports of the Internal Revenue Service and of the United States Department o.f Commerce. - .38al 38o2 39Q5 TS-72 - 6 - After rising to a record level in the latter half of 1952 and early 1953, cigarette consumption declined through 1954, except for the second quarter of last year. However~ during the first quarter of 1955, cigarette consumption (as indicated by tax-paid removals· from factories) was 521 percent above the relatively low first quarter of a year earlier but less than 1 percent above the quarterly average for 1954. Tax data for the 41 States and the District of Columbia which tax cigarettes indicate that cigarette consumption was lower in the last half of 1954 than a year earlier except in 4 instances. But during the first quarter of 1955, cig-':· arette consumption was above the first quarter of 1954 in 22 instances. Since July 1, 1954, cigarette prices have advanced in a few areas due to increases in tax rates. Several other States are considering increasing their cigarette tax rates. About mid-April, nearly all leading cigarette manufacturers advanced-'their prices on king size, nonfilter cigarettes. Consequently, prices of several leading king size brands rose 1 cent per pack at retail--4 or 5 percent. Several leading king size prands were raised from $8.03 to $8.38 per 1,000 (excluding usual trade discounts from list prioes)--a little over 4 percent. Manufacturers • prices include the Federal tax of $4.00 per 1,000. Excluding the $4.00 Federal excise tax, the percentage increase in manufacturers' prices amounts to 8 ~percent. For some king size brands, the price increase was smaller--from $8.25 to $8.38 (excluding usual trade discounts). Based on priv~te estimates of the 1954 proportions of the king size, nonfilter cigarette bran~s, it is probable that the brands on which prices were increased represented about 25 percent of totai domestic consumption. King size, nonfilter cigarettes are generally believed to contain around 17 percent more tobacco than regular size cigarettes. Manufacturers' prices (excluding the Federal excise) for the great majority of king size, nonfilter cigarettes are now 11.1 percent above the pric~s of regular size brands. Prior to the recent i~crease, manufacturers' prices ~excluding the Federal excise) for some major king size brands were about 24 percent above prices of leading regular siz,e brands others were 7. 8 percent higher while some companies .sold some ki'ng size brands. at the same price as regular size. · 1 J On 'March 30, the "Tax Rate Extension Act of 1955" was approved. Th;ts postponed the previously scheduled reduction in .the Federal tax on cigarettes until April 1, 1956. The present rate of $4.00 per 1,000 (8 cents per pack of 20) then reverts to $3.5.0 per 1,000 (7 cents per pack)--the p;reNovember 1951 rate. Shipments of tax-free cigarettes to overseas forces in the current to 15 percent lower than in 1953-54. Also, to foreign countries may be off slightly. During the 9 months ending March 31, exports of cigarettes to 7 of the 10 , leading outlets were be~ow'a year earlier but th~ total number of cigarettes going to about 95 other widely scattered foreign-destinations was consider~ ably higher . ,i y~ar seem likely to be 10 co~e~cial exports of cigarettes fiscal ''" .. 7 TS-72 Table ---- ~ Cigarette exports from the United States to leading countries for specified periods 2~- ·--- --;- Country· Tangier and Fro Morocco Venez_uela Hong ;Rong Belgium Sweden -~-g Year beginning-;- -July=March • : : Average • 1947-Sl : ~(calendar= . ~ vear) : July : ~ ...;;..--- •• --=:l:;-::9::-::5,..r.-.5;::r;5,_ 4 • • 8 19~2 8 ~ · ~as per., .• 1953 ~195J..54 ~1954-55. ~centage 1I 1 I 1 J : :t : !f :· 1/ · 1/ : of c : : : ;;;t :1953-54 :Milllon-~--:::lvi~tl':;"":lliOJi's Millions Millions l-tiiiTons Percent: 1,207 i 984 : 1,104 : 1;152 640 : 2$341 1;>394 826 1~048 740 1;862 . 1,455 924 868 865 1,498 1,073 694 626 545 1,.045 1,220 566 631 391 70 114 82 101 72 644 78 72 118 75 82 il8 r Panama·· and Canal Zone Netherl!IDdS Antilles France Canada British ,l~Ialaya Other countries y : .." I 648 1$1002 215 372 348 795 542 580 803 632 574 468 371 506 401 502 337 437 311 329 7,057 6,599 4.9826 5>691 809 I 845 535 413 g 11,987 ~ Total all countries • ~ 19~659 99 Y Preliminarytl g( Includes about 90 to 95 foreign destinationao 'Compiled from publications and records of the United States Department of Conun,~rc9-d Cigars .... - \' CJ.gar ·consumption ~'1 the United States and by overseas forces in· the year 'ending June 30, 1955, is estimated at 6,055 million--slightly lower than in 1953-54c Cigar consumption in the ye'ar ahead is expected to cconminue above the 6-billion le,rel., The output of conti11ental domestic factories (accounting for about 95 percent of consumption) during 195455 has been running a little lower than in 1953-54, but over twice as many cigars have been coming from Puerto Rico as a year earliero Indications, are that. cigars produced in bonded manufacturing warehouses Using imp9rted Cuban tobacco will be about the.same in 1954~55 as a year earlier~ 1Last fiscal year, 48 percent of the cigars ~etailing for over 20 cents ~ach and 29 percent of the cigars retailing £or 15.1-20~0 cents each came ·;rrom bonded manufacturing warehouses<> TS-72 Table 3.- Cigars 1/: - - 8 output and domestic consumption for specified Jeriode _, !_ ' L,_.- ....,,...__,.__ - - - - - - ...... -~..-..--..... t ~ ' ~- ' 2 \ - - • l Bonded Frorn . : Puerto manuImports Domestic - :f ac turing: : :Rico: Tax. for consumption factories l • : :Paid with• warePeriod : _ , drawala a h~ua§.L..!. .'j t t From : From 2in United Total !Tax-'Pa~d ~ax-free !Tax-paid: : Cuba 1 States Total 'Philipao s putpu~ lemovale aremovals 1removals·: •• : pines e :Million Million Million Million Million Million Million MinionAverage t z~"1935-39: 5,075 5, O{;J:) 66 192.,4 189.2 3.0 13 27.4 1940-44: 5,450 5,282 15.3 105 199 78.-4 11~6 93.7 u 1 . : . ( -- {'fr . .:• - 1945 1946 1947 1948 1949 5s275 5,618 5,488 4,774 5,621 5,460 ... . 5,399 5,594 .:I• · 5,825 5,399 46 5,365 5,518 5,755 5,820 5,691 47 5,645 : 1950 1951 1952 1953 1954 0 5,453- \ 1 t Year beginning July 1950 1951 1952 1953 . ~,915 5,818 0 ~ 160 177 196 205 'lj200 26 41 38 85 102 90 90 .. 60.,0 . 10.9 0 2o0 3e2 1o4 .6 59e8 20t1 9.1 10.3 10o2 ll.9 14c.3 146)6 16.8 '\•16.,2 o7 lc2 lo9 2o9 3e6 11.1 1.3.0· 12o5 13.4 12.3 1.2 1,2 2o7 3.2 3·6 l2e0 13e0 12Q6 12.6 12 .. 7 22~2 12o5 11~8 85~3 77.8 6,2 s.o 4.6 .7 .7 1.9 9.9 49.5 Fiscal year : : s 5·)532 ..•• 5,685 5,911 : 5,849 1954 y . 5,790 : y 5,588 82 125 124 140 142 469 \ .. 5,486 5,619 5,789 5,736 5,700 70 87 94 101 80 173 193 203 199 200 13.3 14.4 15 .. 6 16,2 16.5 Weighing over 3 pounds per 1,000 and including cigarillos. estimates. .7 ~7 3o3 30.0 61,0 '-) ~- y Preliminary Basic data but not estimates compiled from reports of the Internal Revenue Service and the United States Department of Comrnerce. , Tax-free shipments of cigars have declined below those of a year .earlier. Most of the tax-free group are used by overseas forces and commercial exports are .. relatively small, Estimated imports of cigars increased slightly from 1953-54 ·to 1954-55 but amounted to les.s than onethird of 1 percent of total consumption. :Host of them came from Cuba and the Philippine Republic. .. ,;.. 9 ' ' According to the Bureau of Labor Statistics indexes, :manufactm-ers 1 prices f,.,r the £our c~gar categoriea..... l~lo.T priced, p~pular priced, medium priced, and high pricedL•sta~ed th@ same fr~m mid•l953 through April 1955~ '' ) l .. ' ~:or i'... .t l During the first three-fourths of the year ending June 1955, indicated tax-paid withdrawals of cigars selling for 4ol-B~o cents each constituted 48.1 pere~~t of the total--slightly more than a year earlier3 Cigars selling for 8.;1~1$ •.0 cents accounted for 41.,2 percent of the total-a little less thari·:a: yea~ _;earlier • · Higher-priced cigars (selling for over 15 cents) and low":'pr~c~~:·-ci.gars (selling at 4 cents or less) accounted for 6o5 and 4$2 percent-"or-·a:n cigars--each group, a little larger proportionately than a.y~ar e~liers '• Smoking Tobacco The output of smo~ing to6acco during the fiscal year ending June 30, 1955, is estimated at 84 3/4 mi~ion pounds--2 percent more than in 19.53-54o Smoking tobacco consumption in this country accounts for the great bulk of the output_ and is expected to be stable in the year ahead. From 1949-50 through 1953-54, output of smoking tobacco for pipes and roll-your-own cigarettes had declined an average of almost 6 percent yearly. The 1953-.54 output was more_ than one-fifth lower than the immediS;te postwar years and dow more than one-half from the prewar years. In the first three-fourths of the current fiscal year, indications are that tax-paid cigarette papers showed a 20 percent gain above the comparable period a year earlier, Probably 50 to 55 percent of "roll your own" cigarettes are made with tax-paid papers., Cigarette papers distributed in packets of 25 or less are tax-free and current monthly data for these are not available~ The most recent data available on tax-free papers are for 1953-54, which showed a small decline--1.2 percent--from 1952-53. It is estimated that the annual volume of roll-yourown cigarettes is around 12 billion--probably one-fourth less than 5 years ago. According to the Bureau of Labor Statistics index, manufacturers' prices of smoking tobacco were unchanged from July 19.54 through April 1955 and have fluctuated only 1 or 2 percent in 4 1/2 yearsc Exports of packaged smoking tobacco in the first 9 months of the 1954-55 fiscal year at 431,000 pounds were practically the same as in the same period of a year earlier. More went to Canada, the leading destination, but less went to Sweden and several other countries taking relatively small amounts~ A substantial quantity of bulk smoking tobacco--much of it semiprocessed--has been exported in recent years, This classification includes especially prepared cigarette tobacco, cut or granulated tobacco, partially processed blended to~cco, and shredded tobaccoc During the 9 months ending March 31, 1955;d~xports of bulk smoking tobacco totaled 4,337,000 pounds--28 percent more than in the same months of 1953-54. Spain, the leading outlet, took 1 1 225,000 pounds--up 47 percent--and Australia, ranking second, took 752,000 pounds in contrast to none a year earlier$ Among other destina~ions, Mexico and Bolivia got slightly TS-72 - 10 - less; Hait:· moderately less, and the Ph.i.l:i.ppine Republic substantially less than .:.n J:uly 1953-March 19544 However, exports of bulk smoking tobacco incr~ased moderately to Dominican Republic and substantially to Panama.. · T~b~ 4.-0utput of manufactured tobacco in the United States. .:·~ , \; () 't f I for specified periods Chewins : Fine: ·t Plu~ = Twist : cut : ScraE : Total :Snuff :Million Million Million Million Million Million ~lillim :;eounds ;eounds Eounds E£unds Pounds Eounds Eounds I Periolf :Smoking Average: 1935-39 ~ ' 1950 1951 1952 1953 1954 : 56.8 195.3 176 .. 2 1940-44 1945 1946 1947 1948 1949 · 54e8 168~,~5 59,7 51.8 47,3 45.3 41.9 ... 106.4 104c7 107o6 108,1 107.7 101.3 i 96.8 : 86 .. 6 : 83.7 : 40o2 39f;9 39.1 38 .. 1 37e0 t 6.0 6 ..0 4.8 4.6 43o8 47.9 111.4 113.3 37.3 40o7 6.? 4 .. 0 3 .. 8 3.8 3.2 47~7 2~8 46ol 42.2 42.1 39.6 118 ..1 107.5 98.5 96.2 89o9 43 .. 8. 39c4 39o2 40 .. 8 40o9 2.7 2;)8 2.8 2.9 3o0 J9o0 39ol 38 .. 2 38 .. 1' 36.,6 87.4 86 .. 4 84.9 83 .. 8 8lo5 4o.o 5 .. 8 5~2 5 ..6 5.6 5.. 5 4a6 4o8 4 .. 7 4.9 39o5 38o8 39ol 38&5 'i Fiscal year Year beginning July 1950 1951 1952 1953 195411 : t •r ~ ' 40~1 106~0 98~0 92~3 39Q4 83.1 84.8 37.6 36.7 38.5 5.1 4 .. 5 4.9 4.7 4.9 2.8 2.,8 2.8 2.9 3o0 39r.7 39.0 37.5 37..5 36 .. 5 87.7 85.7 40e4 82.7 81.1 39o0 38"8 83.1 ~·- ' 39~1 38~1 1/ Preliminary estimates. Basic data but not the estimates compiled from reports of the Internal ,, · Revenue Service • ~~ ' Chewing Tobacco Output of chewing tobacco in the United States.during the fiscal year ending June 30, 1955, is estimated at .a little.ov~r 81 million pounds-2 percent less than ·in 1953-54. Production of chewing .tobacco has declirwd at an annual rate of 1.8 percent since 1949-50, continuing the downtrend-: of many years.. During the first three-quarters of 1954-55, manufactures 111 of plug and scrap were 2.9 and 3o7 percent smaller than in the same period'). 11 L of 1953-54 but twist and fine-cut increased 7~~o and 3.2 percent., Plug 1 and scrap made up 45o4 and 44 .. 8 percent of total chewing tobacco, while , ." twist and fine-cut accounted for 6.1 and 3. 7 percent. r' I ' I TS-72 - 11 - According to the index of the Bureau of Labor Statistics) manufacturers ' prices of plug chewing tobacco have been unchanged for several years. During the 9 months ending ~arch 31, 1955, exports of chewing tobacco totaled 1,603,000 pounds--13 percent more than in the same period of 1953-54. Indications are that this was mainly plug and twist--constituting about 2 or 3 percent of total plug output and probably around 25 percent of total twist output. Australia took 40 percent more chewing tobacco in July 1954-March 1955 than a year earlier but the Philippines got 4 percent less. These ·two countries took nearly nine-tenths of total chewing tobacco exports. Snuff' The output of snuff in the United States in the fiscal year ending June 30, 1955, probably will be near 38.8 million pounds--almost the same as in 1953-54. Practically the entire production is consumed in the United States--mainly in the South and Northwest. Snuff consumption in the year ahead is likely to continue near the present level. In the aggregate, snuff consumption has been remarkably stable for many years, According to the Bureau of Labor Statistics index, manufacturers' prices of snuff have been unchanged the last few years. EXPORTS OF UNMANUFACTURED TOBACCO FROM THE UNITED STATES }) Exports of unmanufactured tobacco from the United States in the year ending June 30, 1955, are expected to approach 500 million pounds (roughly 555 million pounds, farm-sales weight equivalent)--about 8 percent above 1953-54 and nearly 12 percent above 1952-53· In 1955-56 tobacco exports may increase further. Much of the tobacco purchased by some countries in connection with the programs under the Agricultural Trade Development and Assistance Act (Public Law 48o) probably will be shipped in 1955-56. This will be tobacco in excess of normal marketings and for which foreign currencies are accepted. The United States Department of Agriculture has thus far announced arrangements which include tobacco with the £allowing countries: United Kingdom--approximately 11 Korea-Spain-II Japan-" 11 Italy-11 Finland-11 Pakistan-11 Israel-- 22 million pounds 11 10 '' 9 II II 6 II II 11 4.2 11 11 3. 7 11 11 3.6 " 11 11 1/4 Negotiations with other countries are being carried on. i/ Quantities of tobacco in this section are stated in ter.ms of export weight, which is less than the equivalent farm-sales weight. VALUE PER POUND OF TOBACCO IMPORTS by t:he UNITED KINGDOM Unstemmed Flue-Cured, by Country of Origin ( PER 80 ·60_ 40 20 " - 1.. . Uniled Slales 1-' ~ ,_ -. ..:: .,, 0 1V45 1940 1950 '1955· *UNITED KINGDOM PENCE CONVERTED TO UNITED STATES CENTS USING APPROPRIATE YEARLY--AVERAGE EXCHANGE RATES r-- : . . . . u.s. \ ., ,.._ DEPARTMENT OF AGRICULTURE The value per pound of flue-cured imported into the United Kingdom was practically the same in 1954 as in 1953. For unstemmed flue-cured, the 1954 value of imports from the United States aver-iged close to 73-1/2 cents per pound--a.!;!_out 1 cent atiove 1953-while that from Southern Rhodesia ave;r~~~ ~2-:1/2 ce_nts--nearly 1 cent lower. Flue-cured imported from ~n:Ula'-dudh!(1954 averaged 62-1/4 cents per pound--about one-half cent above 1953. United NEG. 8D8-55 (5) AGRICULTURAL MARKETING SERVICE Kingdom imports of flue-cured from the United States were 8 percent less in 1954 than in 1953 but the quantities from Southern Rhodesia and Canada increased 10 and 5 percent. Average import values include leaf !!;rices, freight, and other cost it~ms,_to entry ports but exclude impory-duties, which since 1949 ~ve-b!f~neequiv alent to about $8.15 per- pound for United States tobacco and $7,94 for tobacco from Commonwealth countries. TS-72 - 13- In general, industrial activity in most of Western Europe has improved in the past year and gold and dollar res8rves at the end of 1954 were 15 percent above a year earlier. For the sterling area, the gold and dollar reserves held in London at the end of April tvere 5 percent lower than a year earlier when they were approaching the high for the past 3 1/2 yearso At the end of l~rch 1955, German gold reserves were 84 percent greater than a year earlier and they were also larger in Netherlands, Belgium} Sweden, and Switzerland. At the end of 14a.rch 1955, short term liabilities to foreigners (principally demand deposits and United States Government obligatior.s in banks in this country) were well above a year earlier for Germany, France, Austria~ Portugal, and Spain~ They were about the same as a year earlier for Switzerland 1 Netherlands, and Sweden but smaller for United Kingdom, Belgium, Norway, and Denmark and also for such important countries in the Far Pacific as Republic of the Philippines, Thailand, and Indiao Short term liabilities to Japan and Indonesia were larger than a year ago. The major source of dollars to foreigners is the sale of goods and services to the United States~ Through April of the current fiscal yearJ the total value of United States merchandise imports from abroad l'Tas only slightly less than in the compal:'able period of 1953-54. Imports lagged behind a year earlier in the last half of 1954, but in January-April 1955, they 'vera 4 percent higher than in the same period of 1954o During J~ly 1954-Harch 1955, exports of all types of tobacco combined were larger than in the comparable period of 1953-54 to the United Kingdom, France, Belgium, 'Port~gal, Switzerland, No~vay, Sweden, Hong Kong, Australia.~~ India, Pakistan, 1\etv Zealand, and the Philippine Republic. There was a particularly sharp increase to France but the totals to Germany, Ireland,, and Indonesia v1ere significantly lower than in the comparable period of 1953-54. Two other important outlets getting less were Netherlands and Denmarko \ Foreign countries producing and exporting significant quantities of flue-cured :f:.obacco include ..Southern Rhodesia, Canada, and India. The flue-cured crop of Southern Rhodesia now being sold is estimated at near 114 million pounds--5 percent less than a year earliero Acreage in 195354 and 1954-55 was practical~y the same e Yields per acre vrere reduced by excessive rains in some districts. Prices for early season sales (8 weeks ending May 5) averaged the equivalent of about 49 cents per pound~-18 percent above the low average for the corresponding period of last ·year when much of the lower quality grades was being marketed. The United Kingdom manufacturers and Southern Rhodesian 11arketing Board have an agreement whereby purchases up to 85 million pounds may be made in 1955 if price and quality are satisfactorye For each year 1956 through 1958, purchases up to 80 million pounds may be made subject to the price and-quality conditionso In the past years, actual tobacco imports in~o the United Kingdom from Southern Rhodesia have been considerably lower than the maximum quantities provided for in the agreementsG TS-72 Ta,ble - 14 - 5c- United S bates exports of unmanufactured tobacco, to principal importing cuuntries 3 by types, for specified periods (Declared weight) -----::...... JulyuoMar"-'c:-.::h~~,_,_ • : : : 1954~55 Cou."'ltry as per1953 19.54 and :1953-54;1954-55; centage type !I !I "};/ : ·~./ : of : ~ : 1953-54 :Million Millio_n_M-.i~l~li~o-n-Million Million Million :pounds pounds pounds pound~ pounds pour.ds Percent ---- ---- ------ ---- ---- . . . . ; Flue-cured Burley Maryland V a, fire-cured and sun-cured Kyo & 'l'enn. One Sucker Green River Black Fat, etce Cigar wrapper Cigar binder Cigar filler Perique stems, trimmings, and scrap 319o3 27.0 5e8 C f t 6oO 24<>6 3ol 1.7 4.7 ) )9o8 ) \}1 5(>2 2lo8 1.5 2,3 3.2 3ol 2c8 .. 8 .1 4~3 19a5 loO 1.,8 3o9 3o9 3.1 ~6 ol 325~4 16118 5.8 329,.7 22.8 6.7 101 136 116 ~~o )('$ 3~3 20.9 12!;)0 <>6 1(/4 JoG 2o4 lo6 o6 .1 17~3 94 144 2Ql 2.6 3.9 2.8 1.4 186 130 117 88 374.7 29.,6 8.7 .9 2el 4o5 3.5 1.7 o2 .1 vo1 350 '•(, --- 100 8.1 3o6 JQO 2o6 104 -------2o7 - - -2o5 ---__ : 486~4 396o5 518o7 453o6 375~7 395.3 105 ·= ====== ===.:===== ::::::==== - __;.._ Total ' Country of desti- t nation: = United Kingdom 177o8 54e7 179~7 France 9u0 6~7 4o7 Belgium 22o7 15~6 12o6 Netherlands : 33~9 36,2 38al Germany, \rJ:) and E,: 49ol 79~6 71~9 Portugal 8e7 5$0 6o9 Denmark 1lel 9o5 11v8 Ireland 17?7 16~4 l?e5 Switzerland 12Q7 10e7 llo9 Norway 7.9 7,8 7Q4 Sweden 12t4 13~0 10o2 Italy 7o0 2t9 5o6 Hong Kong : 5GO 3.6 4~1 Australia ; 20o3 24cO 26o7 India-Pakistan 8~1 5o8 2c9 New zealand 5e8 5,4 5a8 Philippine Rep~ 7e6 29o7 20Q9 Indonesia 6115 13o6 13o0 Other countries :-6-.3o._l_ _.... 5~3__6...;7_._oTotal : 48604 396.5 518o7 y 150o0 12~6 12~5 38.1 43.4 7e4 9~6 14,1 11.7 7,6 9o6 3o9 3o5 28,2 124o4 2~3 10<>0 30.1 48t3 3~9 10$6 17o0 8Q2 5o6 10o3 ~1 2o5 23a8 146o2 12o8 13.4 27.5 32w4 5.3 9o0 13,0 9.6 6.8 11o2 ,2 3~4 2~0 26o9 3,2 6.6 4.5 19e5 13&5 10,.3 10o0 _6_l...;.;o5;__.__.48.,6 453e6 375e7 14.1 4.7 50"6 395v.3 3.5 5.0 118 557 134 91 67 '' 136 85 76 117 121 109 200 136 f 113 160 111 104 47 __ 10_4_ 105 Preliminary" 2j Less than 50,000 pounds, Compiled from publications and records of the United States Department of Commerce() -lS- TS-72 ******************* * A special article--Average values * * Per Pound of Tobacco Exported From* * the United States--is included in * * this issue !beginning on p3ge 41 e * ******************* tl: · Canadian production of flue-cured tobacco in 1954 was a record 173 million pounds--30 percent larger than in 1953n About 97 percent of the 1954 crop was produced in Ontario. The 1955 flue-cured acreage will be considerably smaller than in 1954. Growers associated with the Ontario Flue-cured Marketing Association account for a predominant ·share of total acreage, This Association has approved a cut of 30 percent below last year~ when 100 percent of the base ·acreage was permitted. The Ontario Flue-cured Tobacco Marketing Association fixed the minimum average price for the 1954 flue-cured crop at 42 1/4 cents (plus an additional 2 cents for tying and grading)~ Actual prices for the great bulk of the Ontario flue-cured crop are believed to have averaged close to 44 cents per poundc Canadian cigarette consumption increased 5 percent from 1953 to 1954 and was substantially above 1951 and 1952 when the higher tax rates, then in effect, made cigarette prices highera . ,. · The preiimi~ary estimate of the 1954-55 harvestings of Indian flueis 95 million pounds--10 percent smaller than a year earlier. '".~ -~ured The United Kingdom is the leading outlet for tobacco exports from these countries(!> In 1954, SB percent of the total shipped from Rhodesia and Nyasaland and 78 percent of the total shipped from Canada went to Britain; Tobacco exports from Rhodesia and Nyasaland to Britain were 86 percent flue-cured and the other 14 percent, mainly fire-cured tobacco~ Tobacco exports fran Canada to Britain were predominantly nue-curedo About 44 percent of the Indian tobacco exports went to Britain--much of it, stemmed flue-cured. Tobacco exports from Rhodesia and r.:ryasaland to Britain, Australia, Netherlands, Belgian Congo, Denmark, Egypt, Nigeria, and Belgium increased from 1953 to 1954 but less went to Germany, Sweden,Sierra Leone, Union of South Africa, and Indochina~ canadian exports were larger to Britain, Australia, Jamaica, Netherlands, and TrJesterrl Germany but smaller to Trinidado The Department of Agriculture in Canada expects tobacco exports from Canada during 1955 to be over SO percent larger than the 32 million pounds shipped last yearc Tobacco exports from India showed only a slight increase from 1953 to 1954& A little more went to Britain, Aden, and Hong Kong and substantially more to Pakistan and mainland Chinao Considerably less went to Japan, Indonesia, Netherlands 1 Belgium, and Ireland than in 19$3Q British Tobacco Situation The United Kingdan continues to be the leading export outlet for United states tobacco although taking a considerably smaller share than in the prewar and inunediate postwar periodso The 1954 British home consumption at close to 233 millio~ pounds was about 4 percent above 1953 and the third largest on record~ British consumers spent a record • ~. ass million pounds sterling (equivalent to about 2ct4 billion dollars) -·~' for tobacco products in 1954. 'Tobacco expenditures absorbed about 7 percept:-: TS-72 - 16 - of total disposable income~ British exports of manufactured tobacco (93 percent of which was cigarettes) dropped 7 percent from 1953 to 1954 and were the smallest in 9 ye,ars1o ' .... During July 1954-March 1955, Britain imported 260 million pounds of tobacco--12 percen~ more than in the comparable period of 1953-54c About nine-tenths of it was flue-cured. British tobacco imports from the United States were up 18 percent and that from Rhodesia and Nyasaland increased 16 percent; also there was about an 8-percent larger quantity from India., The much heavier tobacco imports from Canada during the first quarter of 1955 than a year earlier brought the July 1954-March 1955 total ne~ly even with that for the comparable 9-month period in 1953-54~ A~tbough small in relation to the total, imports of tobacco from Turkey an~Qreece were up sharply in July 1954-March 1955 compared with a year earl~er. ~-~ British figures on gross clearances from bond are indicative of the co!Jlp:ined leaf usings in products for home consumption and export(l In the ?~~pnths through the end of February, gross clearances of unmanufactured topacco were 3 percent larger ~han. for the comparable period a year earlier, Th~· usings of tobacco from non-Commonwealth and Commonwealth areas both in'ereased--constituting 56 and 42 percent of the total, respectively. Gross clearances of United States flue-cured in July 1954-February 1955 at 93 million pounds were 3 percent larger than in the canparable period a year earlier,. Gross clearances of flue-cured from Southern Rhodesia, India, and Canada, totaling about 75 million pounds, increased about the same percentage, Flue-cured tobacco composes 85 to 90 percent of the total gross clearances of tobacco in the United Kingdom. Although British exports of manufactured tobacco products (predominantly cigarettes) from July 1954 through March 1955 were 2 1/2 percent lower than in the comparable period a year earlier, that shipped in the first quarter of 1955 was 7 percent above first quarter 1954. The principal increases were to 1rJest Germany, Gold coast, New Zealand, Aden, saudi Arabia, and Malaya but tobacco products exported to Singapore and Australia, two major outlets, decreased. _ Britain re-exported about 2o5 million pounds of unmanufactured tobacco ·during the 9 months through March 1955--much less than the 3.9 million in the same months of a year earlier, stocks of unmanufactured tobacco in the United Kingdom at the end · of February 1955 totaled 454· million pounds--almost 9 million more than a' year earlier. This is the second highest February level since the early war years but still well below the February average for years just prior to World lrJar II. p.t the end of February 1955, stocks of United States fluecured in Britain totaled 204 million pounds, 2 percent above a year earlier and about 1 1/2 times that used in 1954. Stocks of Southern Rhodesian flue-cured in Britain at 90 million pounds were up 7 percent from a year earlier--about 1,6 times the 1954. usings. stocks of Indian flue-cured at 52 million pounds were even with-a year earlier and lo7 times the 1954 usings6 Stocks of Canadian flue-cured in Britain at 39 million pounds · · • were 5 percent above a year earlier and amounted to about 1 1/2 times the · ~us~Q ~ - 17 - TS-72 Table 6,- United Kingdom tobacco: Imports, stocks, clearances, and exports for specified periods - : Gross clearances Imports 3:,/ from bond 3/_ Exports:Re-exports : From : :of manu... : of unmanud : From : Common-: :Stocks : Non- :Prefer-: Perio :United : wealth :Dec9 3l:prefer-~ ential: Total :factured: factured tobacco: tobacco 2 :ential :States : coun- : Total y tries :. !I 3_1 2/ Mil,. Mil, Mil, Mil, : Mil. Mil. Milo Mil. Mil. lb. lb. lb. lb, lb. lb. lb. lb. ~ Average: 12 232 39 185 47 275 1934-38« 213 57 497 27 62 5 277 63 310 215 255 1939-45: 182 . - 1946 1947 1948 1949 1950 : • . 1951 1952 1953 4h 1954 ;t: - - 366 201 172 154 144 62 82 97 119 146 433 296 281 302 306 419 445 261 235 204 190 180 61 57 67 81 91 322 292 271 271 271 55 52 45 47 43 7 1 1 2 4 212 67 174 160 131 143 127 139 355 224 316 312 498 430 452 461 183 172 167 168 104 108 116 122 287 280 283 290 51 47 45 41 12 9 4 383 384 390 7 1/ Unmanufactured tobacco, 2/ Since 1946 the full duty rate on tobacco from the United States and other nonpre?erential areas has been abou~ 3 percent above the preferential rate on tobacco from Commonwealth areas. In the,rewar period, the full duty rate was over 25 percent above the preferential rate. 3 Largely withdrawals for manufactures for home use and export. ~/ Subject to revision. Compiled from the Annual Statement of Trade and Accounts Rel~ting to Trade and !avigation of the United Kingdom. ~-- .: UNITED STATES IMPORTS AND STOCKS OF FOREIGN GROWN TOBACCO !/ United States imports (for consumption) of unmanufactured tobacco in the fiscal year ending June 30, 1955, may be a little above the 105 million pounds in 1953-54~ -DUring the first 9 months of the current fiscal year, tobacco imports were 3,6 percent greater than in the comparable period of 1953-54. 3/ Imports of tobacco for consumption are on a declared-weight basis and stocks are on an unstemmed-equivalent basis. } ~ . { TS-72 - 18 - Table 7.- United States imports for consunttion of unmanufactured tobacco, from principal supplying countries. for specified periods (Declared -vreight) Classificatio-n- :;_- - : - ---;- _-:- --:fuly-Marctl 119/5 4 :1953~:--r954-55 and co~m~ry : 1 ~4~~~~ 1952 : l9/53 _ of or~ _ : : !. : - : 1/ : 1/ Million Million Million Million Million Mi1~l~~·o_n_ pounds pounds pounds pounds pounds pounds Cigarette leaf Unstemmed . Turkey 42.2 46.9 56.0 41.7 55.0 56.9 .Greece 10.4 12.1 14.5 14.3 15.6 9·3 Syria 2.4 2.0 3.8 2-9 3·7 3·3 Rhodesia .4 .1 .1 2 1.3 ·1 Yugoslavia .4 .8 1.1 1.4 2.3 1.9 Italy .8 1.2 1.3 1.7 1.9 Malta .2 .2 .2 ·3 ·3 : Total 'J.,/ Ciga.r leaf (filler) Cuba Stemmed Unstemmed Philippine Rep. Stemmed Unstemmed Total ~/ Scrap · Cuba Philippine Rep . Total ~/ Ci&ar wrapper (unst.) Indonesia Cuba Total 'j_/ Total imports ~/ . ~j : --e>7T -----r5. 9 '78". o 79.3 58.1- 12.1 4.4 9·9 4.0 9·7 4.4 9.1 4.7 6.8 3·4 · .1 .2 1.9 .2 .6 4' .4 'i/ 8.1 1.2 8.9 2.3 ---"59.9 7.0 4.0 4/ 0 4' _, ~I 9·7 1.4 6.7 1.3 7.1 .9 --16.8 5.2 .4 --5.6 9.4 -'11~ 11.1 -s-:-o- -a~ .8 ·3 .8 -3 --1.1 1.1 .4 .4 ===== 91-5' 102.9 .4 ·5 ·9 ---:9 ===== 105.4 106.4 ·3 .4 .3 .4 ...,----- ·7 77·9 80 7 L 1/ Preliminary 2/ None or relatively small imports from Italy and Malta in-1947-50. 3/ Includes relatively small quantities from other countries not separately listed 4/ Less than 50,000 pounds. 5/ Includes tobacco stems; not cut; ground~ or pulverized, not shown separately. Compiled from publications and records of the United States Department of Commerce. TS-72 -~- Nearly three-fourths of total tobacco imports was cigarette leaf, which was up 3.1 percent--most of the increase coming from Greece, · Yugoslavia, and Italy. The July 1954-March 1955 fmports from Turkey-b.Y far the leading supplier--were slightly lower than in the same period a year earlier and less came from Syria. Imports of cigarette leaf from Rhodesia have diminished considerably in the last few years. Stocks of foreign grown cigarette and smoking tobacco in this country were a record 191 million pounds on April 1, 1955,--4 1/2 percent larger than a year earlier and nearly 13 percent above 2 years earlier. Cigar leaf filler imports were 4.7 percent larger in July 1954-March 1955 than the same period a year earlier. The major increase was in unstemmed filler leaf from Cuba. Stemme~ filler imports from the Philippine Republic were down sharply. Imports of scrap (also largely used as cigar filler) were about the same as last year--the decrease in that from the Philippine Republic about offsetting the increase from Cuba. On April 1 1 1955, stocks of Cuban tobacco in the United States at 17 million pounds was nearly 5 percent above a year earlier--the second highest for that .date in 5 years. Stocks of Philippine Islands tobacco at lo4 million pounds were 8 percent lower than a year earlier. Unstemmed cigar wrapper imports in July 1954-March 1955 from Indonesia and Cuba were approximately the same as a year earlier. The April 1 stocks of Sumatra and Java tobacco in this country (not including leaf held in Free Trade Zone) totaled 338 1 000 pounds. Although up from a year earlier, stocks of this tobacco were still well below the 5oo,ooo-6oo,OOO-pound level for April in 1951-53. Stocks of Cuban tobacco in the wrapper group totaled 679,000 pounds on April 1--substantially less than a year earlier. RECENT CHANGES IN TOBACCO LEGISLATION PUblic Law 21 approved on March 31, 1955, contained several provisions applying only to burley tobacco and al~9 some provisions applying .· to all kinds of tobacco affected b,y marketing quota and price support ' legislation. The provisions pertaining only to burley tobacco are discussed on page 22and those pertaining to all kinds are summarized below, The new legislation• (1) Provides that the acreage of any kind of tobacco harvested in excess of the farm acreage allotment for 1955 or any subsequent year shall not be taken into account in establishing State andfarm acreage allotments. (2) Provides for a reduction in the following year's farm acreage allotment for any kind of tobacco if the producer files or aids or acquiesces in the filing of any false report with respect to the acreage of tobacco grown on his farm. TS-72 - 20 ·• (3) Increases the penalty on the marketing of any kind of tobacco harvested in excess of individual farm marketing quotas from 50 to 7.5 percent of the average market price for such tobacco for the preceding marketing year-.effective for the 19.55 crops. The penalty rates applicable to the marketing of e~cess tobacco during the 19.54-5.5 marketing year (19.54 crop) and those th~t will apply in the 195.5-56 marketing year (19'5 crop) are as follows; Kind of tobacco Flue-cured Burley Fire-cured Dark air-cured Virginia su~cured Cigar filler and binder l954 crop penalty rate (Cents p!3r pound) 1955 crop penalty rate (Cents per pound) 21 26 17 13 16 21 40 37 28 26 24 28 OUTLOOK AND SITUATION FOR TOBACCO LEAF Flue-Cured, Types 11-lL. 195.5-.56 Supplies According to farmers' intentions on March 11 about 995,300 acres of flue-cured '.Jill be grot-m in 19.55--.5 percent less than the 19.54 acreage. This reduction is in line with the reduction in acreage allotments, and 19.5.5 harvested acreage will be the smallest since 19.50. If 19.5.5 yields per acre should equal the recent .5-year average (after adjusting for certain relatively low yields), this year Is crop lvould approximate 1,27.5 million pounds--3 percent less than in 1954 and practically the same as the 19.53 crop• Carr.yover of flue-cured on July 1, 1955, is expected to be about 2,004 million pounds--nearly 5 percent above a year earlier. The prospective total supply for 19.5.5-56 is around 3,280 million pounds-- 1 1/2 percent larger than for 1954-5.5. Such a supply is nearly 2.67 times the estimated current year's disappearance compared with an average ratio of 2.36 for the 5 marketing years, 1947-51. Flue-cured grow·ers will vote this year on 1-.rhether to continue marketing quotas for 1 year, 3 years, or to reject quotas.. In July 19.52, they voted nearly 98 percent in favor of quotas on their 19.53, 19.54, and 19.55 crops. Tt-1o-thirds of the voting growers must approve, in order to continue quotas in effect. TS-72 ~o~es1-~~ ~ ~ pPor~ - 21 - During lihe ·current marketing year (July 1954-June 1955), the domestic use af flue-cured is estimated at 770 million pounds--aJightly lower than in 1953-54. Although cigarette output, the principal outlet, picked up some during January-March, the total for the first three quarters of the year was 2.4 percent below the same period a year earlier, The 1955-5'6 rate of domestic use is expected to be as large as and perhaps a little larger than in the current year(/> Exports of flue-cured tobacco in the year ending June 30, 1955', ~re estimated at 455 million pounds (f~sales weight)--5 or 6 percent above 1953-54 and the second largest in 8 years- Flue-cured exports may improve further in 1955-56. During the first three-fourths of the cuiTent marketing year 1 flue-cured exports were slightly ahead of those in the same period of 1953-54, and a fairly substantial quantity is expected to move to Britain in the final quartera During July 1954-March 1955, exports of flue-cured to Britain, the leading export outlet, were 16 percent ahead of a year earlier but those to Germany, the second ranking outlet, were down 36 percente Among the next four ranking outlets, Australia and the Philippine Republic increased their takings ll and 5 percent but Netherlands and Ireland took 9 and 24 percent less tnan in the comparable period a year earlierQ Belgium, sweden, New Zealand, Egypt, Norway, India, Pakistan, Hong Kong, France, Spain, Austria, and British East Africa, all took greater quantities in.July 1954-March 1955 than in the_ same months of 1953-54a However, Indonesia, Denmark, Japan, Finland, Thailand, Portugal, and Indochina, each took less while Switzerland and Mexico took nearly the same as a year earlier. Table 8.- Flue-cured tobacco, types 11-14: Domestic supplies, disappearance, and season average price, averages 1934-38 and 1939-43, annual 1944-54 (Farm-sales weigh-t""')_ _ _ -~r--- ___ • .--~,-1 Disappearance 1/ : Average Year ; Production;st~cks' :Supply : al :Domestic:Exports: price per : : Ju y 1 : : Tot : 2/ 2/ c })Ound Million Million Million Million Minion Million Cents pounds pounds pounds pounds_ pounds pounds -----= Average~ 1934-38 t 1939-43 : 19h4 1945 1946 1947 1948 . 1949 19.50 1951 : 19.52 1953 741 837 845 1,358 1,586 2,194 704 788 338 512 366 276 22,9 27.6 1,087 1,173 1,352 1,317 1,090 1,189 1,126 1,147 1,287 2,276 2,299 2,499 2,604 2,640 1,150 1,152 1,212 1,054 1,102 696 667 659 695 720 454 485 55.3 359 382 42.4 4.3.6 48 • .3 41.2 49.6 1,115 1,257 1,453 1,365 1,272 1,485 1,557 1,731 1,852 1,538 2,653 2,742 3,010 3,096 3,124 1,168 1,185 1,279 1,244 1,209 729 757 777 828 778 439 428 502 416 431 47.2 54.7 52.4 50.3 52,8 1~550 ---:----=--------- - - - - - - - -----... - 1/ '!) 1954 2/ : 1,314 1,915 Year beginning July 1. 3,229 Subject to revisi<n, 52.7 TS-72 - 22 - Prices Growers received an over-all average of 52.7 cents per pound for the 1954 crop--very nearly the same as the 52.8 cents for the 1953 crop.t The average for type 11 was considerably higher in 1954 than 1953 but the price average for type 12 was down a little and those for types 13 and 14 were moderately lower. The 1954 support level was 47.9 cents per pound-the same as for 1953· On April 1, the Department of Agriculture announced 48.3 cents per pound as the minimum level at which the 1955 flue-cured crop would be supported. The actual level of 1955 price support will be 48.3 cents or 90 percent of the July 1 parity price, whichever is higher. ' ,· During the 1954 marketing season, growers placed 130 million poundB under Government loan. This was almost 10 percent of the crop compared with about 12 percent during,the preceding season. Flue-cured tobacco in Government loan stocks totaled .about 335 million pounds (farm-sales weight) •on April 30, 1955. The 1954 crop tobacco accounted for 37 1/2 percent of ' the total; the 1953 crop, 38 3/4 percent; the 1952 crop, 18 percent; and the 1951 crop, 5 3/4 percent. Of the 1,045 million pounds (not including the 78 pounds for British option.in 1952) placed under Government loan in the 7 seasons prior to 1954, aqout 80 percent had been moved into trade 'Channels by April 30, 1955. ' Burley, Type 31 1955-56 Supplies ': ' In a record turnout on April 28, burley growers voted 96 percent in favor of a further cutback in 1955 acreage allotments. New legislation approved on March 31 author.ized a redetermination of the 1955 burley mar·keting quota and a special referendum to find out if burley growers app~oved. ·;The legislation provided-that for burley no preliminary farm acreage allot~ent could'be reduced more than 25 percent; that previously established 1955 acreage allotments of ,.s~ven-tenths acre or less could be reduced, by not more than one-tenth acre1 fQr 1955; and that previously established 1955 acreage allotments of five-tenths acre or less would not be further reduced for 1955. The new Law provides that effective beginning with 1956, the burley acreage allotment for individual farms for any year(shgll'not be less than the smallest of (1) the allotment established for the immediately preceding year, (2) five-tenths of an acre, or (3) 10 percent of the cropland in the farm. However, no allotment of seven~tenths'of an acre or less can be ·reduced more than one-tenth of an acre in any one year. ·· ' I The redetermined 1955. quota means an allotment totaling about 310,000 acres compared with about 369,000 acres under the original deter~ mination made late ·in November 1954. The new acreage allotment is 26 percent lower than the 1954 harvested acreage. If yields per acre equal i:.J:ifi.11952-54 average and harvested acreage approximates the allotment, the 1955 crop will be about 450 million pounds--nearly one-third smaller than in 1954. Last year the burley yield per acre was exceptionally h~avy-a record 1,585 pounds compared with the previous high of 1,403 pounds in 1952. \ \ TS-72 ... 23 The carryover on october 1, 1955 (beginning of the 1955-56 market- ing year), is expE;Jcted to be around 1,325 million pounds--11 percent above a year earlier 0 If the crop should turn out about 450 million pounds, the 1955-56 total supply of burley may be 1,775 million pounds-5 percent lower than the high 1954-55 figure 0 Such a supply would be close to 3o30 times the current year's disappearance compared with an average ratio of 2~85 for the 5 rr~rketing years, 1947-51, Burley growers will vote later this year on whether to continue quotas for 1 years, 3 years, cr to reject quotas. Table 9.- Burley tobacco, type 31: Domestic supplies, disappearance, and season average price, averages 1934-38 and 1939-43, annual 1944-54 Year (Farm-sales weight) Average =stocks t t Disappearance 17 tprice per ~Production: Oct., Supply ~ -;;al :Domes'E!c: Exp~rts pound : : : : : ~ : 2/ : Million Million Million Million M ion Million Cents pounds pounds pounds pounds E_ounds : pounds . Average: 1934-38 • 1939-43 j . 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 ~/ : : . .• i: 287 701 '137 591 577 614 485 603 651 759 853 1~106 988 314 376 302 368 12 8 22.2 30.0 902 1,242 1,336 1,467 1,426 1,505 483 483 526 524 .531 474 448 476 496 489 9 35 50 28 42 44oO 39c4 39o 7 48v5 46"0 561 499 618 650 564 974 1,000 981 1,061 1,163 1,535 1,499 1,599 1,711 1$727 535 518 538 548 529 494 488 506 519 494 4l 45o2 49('0 5lo2 50o3 667 1,198 1,865 . 369 941 1/Year beginning October Domestic ~ ~ Exports 1~ 30 32 29 35 52o5 49c8 !( Subject to revision., ., ,. During the year ending-' September 30, 1955, domestic use of burley may be near 500 million pounds--up slightly from the 1953-54 level which was the smalle$t in.3 years. Although ~ig~rette manufacture during the first half of the 1954-55 marketing year was a little lower than in the corresponding period a year earlier, it increased during the second quarter. Output of smoking tobacco during the first half of the current marketing year gained 4.6 percent over a year earlier but output of plug, twist, and fine-cut chewing combined was down 2.7 percento TS-72 - 24 \ Ex~orts· of burley in 1954-55, seem likely to approach 40 million pounds (farm-sales weight)--possibly 5 million larger than in 1953-54 and ,1: the most in·5 years. In the first half of the current marketing year, exports of burley were 47 percent larger than in the first half of:·-1953-54. Germany 1 Belgium, and Sweden took the most in the recent 6 months-registering increases of about 15, 34t'and 14 percent above those a year earlier. Burley export~ to Portugal &a:so were sharply higher and France and Austria took substantial quantities in contrast to none during the first half of 1953-54. Australia took1~arly four times as much as a year earlier and there were also sharp relative increases to the Philippine J~epublic, Denmar~i~Switzerland, Hone ·Korig, and the United Kingdom. Nether. ~~nds, the sixth ranking export outlet for burley in 1953-54, took 24 .~ercent l~ss in October· 1954-March 1955 than in the ~pmparable period a ·year earlier'ana a little less went to Mexico, the third ranking outlet 1 .:~ast year • ·"Also, less went to Norway and F~uland but Egypt tookt more. Prices · Growers received an average of 49.8 cents per pound for the lar6e 1954 burley crop. This was 5 percent less than the record $verage f6r the :high quality 1953 drop but not much \less than for the 1952 crop. T~e 1954 ·s~port level·was 4p.4 cents:. per pound--slightly lower than for 1953. ' . . On April 1, th~ ~epartment of Agriculture announced 46.2 cents p~r pound as the minimum level at which ~he 1955\burley crop would be ~P,orted. The actual level of 1955 price support will be 46.2 cents or 90 percent of the October 1 parity price, whichever is higher. During the 1954 m~rketing· season, growers·placed 222 miilion pounds, one-third of the crop;' under Government loan--the largest quantity . and the largest proportion from any burley crop ever to go under Government loan. Burley tobacco in Government loan stocks totaled about 444 ~illion pounds (farm-sales weig~t) on.April 30, ~~55:· The 1954 crop tobacco accounted for 50 percent of this to~al; the 1953 crop, 23 percent; the 1952, 14 percentj the 1951 ~rop, 12 percent; and the 1950 crop, less than l percent. Of the 669 million pounds placed under Government loan in the 7 seasons prior to 1954, about 67 percent had been moved into trade 1channels by April 30, 1955 . ~ (_, ~~ .,., " ' ..L. '1'.: ~} ., '' lP·J"·) ··t~·,1't·V :,Maryland,· Type 32 . ! \I ., • '.. 1 l ~. I < 1 \,. ~ ~ I • !\ 'l ' I 1955-56 Supplies The 1955 prospective acreage of Maryland tobacco, as indicated by March l farmers' intentions, is 49,000--2 percent less than last year. Acreage allotments are not in effect. If the 1955 yield per acre should equal the 1950-54 average, the 1955 crop would be about 40 i million pounds --5 percent less than last year and.about the same as in 1952 and 1953· A 40 1/2 million-pound crop plus a carryover next Januar.y 1 that probably will be at least 70 million pounds will provide a total supply approximately the same as the 111 mill5.on pounds for the current year~ J/ Maryland tobacco growers will vote later this year on whether a quota should be in effect on their 1956 crop, the next 3 crops (1956, 1957, 1958), or to reject quotase A two-thirdsi favorable vote is required to make quotas effective, Table 10,.-Maryland. tobacco, type 32t Domestic supplie.s, disappearance, and season average price, ·averages 1934-38 and 1939 ..43, annual 1944-54 ----(Farm-sales weight) ~ ='n::-~·_s_a.... p-pe_a_r_an-ce 2/ _ : : : St_o_c=-ks--g-~ Year :Product:ionfolJ.cw:i.ng~ Supply : T tal ~ Dorr.estic ~ Exports 0 : :Jan,·ll/~ 1/ : z 3/ : 3/ _ _ _____;:-,Million Mili"ion Million Million--m::llioo I1i.Il~on : pound!_ pounds pounds pounds pounds poun~ Average: : 1934-38 : 3Be4 21al 1939-43 : 43~t2 26.1 : 1944 1945 1946 1947 1948 38.2 : 1a.4 46.2 37.8 : : 1949 1950 1951 1952 1953 1954 : : 44~9 35.o 46.9 41,2 45.5 53.4 4o.o 41.6 40.2 40,5 y 37.6 46.5 32e4 59.3 64.9 65.4 64.9 3le2 30G3 28.,8 24o2 82.7 34eO 34o3 37(;)0 281;13 27a0 27.7 75.8 78.6 81,9 86.7 93.4 100,9 105.1 105.9 2.4 6.1 5.7 7o3 9o3 Average price per pound Million pounds 19.7 37.2 55.5 57o0 44c5 42.8 54.4 28._0 27'}1 26()7 '!7 ~4 32~4 7o8 48o8 BoO 54.5 28.4 8o4 6.6 48.3 48o2 44"8 42.5 - Y For marketing quota purposes, the carirlyover and total supply of Maryland tobacco are calculated as of the January 1 falling within the marketing year-the 12 months period, October 1 ·through September 30~ 2/ Year beginning October 1, 3/ Subject to revision. - -- Domestic Use and Exports Domestic use of Maryland tobacco during October 1954-September 1955 is estimated at around 29 million pounds--close to 1 million pounds above the 1953-54 figure. j( For marketing quota purposes, the carryover and total supply of l~ry1and tobacco are calculated as of January 1 falling within the marketing Year--the 12-month period, October 1 through September 30~ Disappearances are calculated on the October-september basis. TS-72 - 26 - Exports of Maryland tobacco during 1954-55 seem likely to be about 9 million pounds (farm-sales weight)··~Qjnpared with 8 million a year earlier. In the first half of current marketing'jear, they ran 64 percent ahead of the first half of last year and considerably heavier than in the comparable period for the last several years. Switzerland accounted for 79 percent of the October 1954-March 1955 shipments~-taking more than twice as much as in the same months of 1953-54. Netherlands and Spain also took more but less went to Germany and Belgium. Prices Auction markets for the 1954 Maryland :·crop began on May 3 and for sales through June 3, averaged 44.9 cents per pound. The auction volume marketed by this date -v;ras about 13 million pounds. The average auction price for the comparable period__ of last year was 56.7 cents per pound. Averag~ prices for practically ~11 grades were lower than a year ago. The propo:M:ions of low and fair quality offerings have been grea}ter than last - '-. season. ,_,_ ...1 : L I I \); .L I The Balti!nore hogshead market,bpened for competit·iye bidding on May 5 and through early June, receipts totaled a4million pounds. This, together with the auction volume, would account for about -36i percent of total 1954 production. ·' ··_The 1954 crop is not receiving Government price support since a markettng quota -was not approved by .a,1 majority sufficient' to place it into effect.· The sa:me is true f'or the 195'5 crop so-that when'-it is marketed in the spring and sUmmer of 1956, price ! 'support oaiUlot be ma'de available. - ( For the 1953 crop as a whole, the season average price was 54t cents. This crop was under a marketing quota and the.Government support -level was 50. 4 cents per pound. i . £_ : .\ ' Growers !>laced about 6. 7 million pounds '6-f the 195:3 crop under government loan--about one-s:hxth of the crop. The1' Government loan stocks of Maryland tobacco at the end of April 1955 totaled about 13 million pounds (farm-sales weight). About 49 percent was 1953 crop tobacco; 33 2/3 percent, 1950 crop, 6 2/3 percent 1949 crop, and 10 2/3 percent, 1948 crop. The quantity remaining under loan at the end of April represented about 73 percent of the to~~l placed under loan from these 4 crops. ( I ,(' •' 1 '•. Fire-Cured, Types 21-23 1955-56 Su;pplies According to farmers' intentions as of March 1 1 the 1955 acreage of fire-cured tobacco was indicated at 46,600--10 percent less than the 1954 harvested acreage and in line with the reduction in allotments from a year. earlier. Indicated acreages for types 21 and 22 will be the smallest on record and for type 23, the second smallest on record. Based on intended acreage, if yields per acre should be near the recent 5-year average (excluding the low 1953 figure), production ·in 1955 would be about 55 million pounds--11 percent below 1954 but well above the drought-reduced crop of 1953· TS-72 - 27 - The carryover on October 1 (beginning of the 1955-56 marketing year) is estimated at about 131 million pounds--2 percent less than on last October 1. The new crop, plus this carryover, will provide a total supply of around 186 million pounds for 1955-56--about 5 percent lower than in each of the 2 preceding years. Domestic ~ ~ ExPorts During the October 1954-September 1955 marketing year, domestic use of fire-cured tobacco is expected to be around 33 million pounds--practically the s~e as in 1953-54. During the first half of the ctirrent marketing year, output of snuff--the major domestic outlet--has been nearly the same as in the corresponding period a year earlier. The 1954-55 exports may reach 32 million pounds (farm-sales weight)-3 or 4 million larger than in 1953-54 and the largest in 4 years. During the first half of 1954-55, exports of fire-cured tobacco were well ahead of the unusually low first half shipments of 1953-54. The exports of KentuckyTennessee fire-cured tobacco were up one-third from a year earlier. Netherlands, the leading outlet, increased her takings 9 percent and accounted for 30 percent of the first half total. France, ranking next, got over 3 million pounds in contrast to none during the first half of 1953-54. During the latter half of the 1953-54 marketing year, France took a sizable quantity of Kentucky-Tennssee tobacco. Large proportions of the quantities to France were due to the program under Section 550 of the 1953 Mutual Security Act whereby local currencies were accepted for exports of surplus commodities. Exports of these types to the United Kingdom were much higher than in each of the previous 2 years. First half 1954-55 shipments to Norway and Belgian Congo were considerably larger, but those to Switzerland, French Africa, Denmark, Ireland, Indonesia, and Gold Coast were considerably smaller than during the first half of 1953-54. Belgium and SWeden e~ch took almost as much as a year earlier. Exports of Virginia fire-cured tobacco during October 1954-March 1955 were 7 percent less than in the same period, 1953-54. Norway and Sweden, accounting for 41 and 17 percent of the total, took 31 and 21 percent less than a year earlier but considerably more went to the United·Kingdom and Netherlands. Switzerland and Australia each got less but more went to New Zealand. Prices The 1954 season average price for all fire-cured combined at 37.8 cents per pound was 12 percent above the average for the considerably lower quality 1953 crop and just topped the average for the 1952 crop. The Kentucky-Tennessee types 22 and 23 averages were 40.8 cents and 32.4 cents per pound--up 5.9 and 4.5 cents, respectively, from a year earlier. However, the Virginia type 21 average at 34.4 cents per pound was 1.2 cents less than for the 1953 crop. The 1954 Government support level for firecured tobacco was 34.8 cents per pound. ~-72 - 28 ... Table llo- Fire-cured toba~eo, types 21-24: Domestic supplies, disappearance, and season:average price~ averagea 1934-38 and l- j"·,;· 19.39-4:3, ;;annual 1944..$4 '' wei~t) . . DisapEearance 7Z Average Stocks . Year •• Domestic: Exports . price per : Produc tiom Supply . ,, . Total ___y : 2L : Oot3ll . EOUUd Million Million~Million Million Million Million .• pounds pounds11· Cents Eounds Eounds Eounds : 69('8 10.2 :53-.2 1934-38 . ll0.2 123.0 194.2 304o4 821}4 (Farm-sales t ~ 0 ~ 0 t I ~unds ~) ~ Ave~age: 165.2 247o6 74.9 53.5 21o4 66.1 58.3 108.9 86.4 73o2 173?5 13lo8 104 .. 9 143(14 162.6 239l)6 190ol 213e8 229(,18 235o8 107~8 85o2 7014 ' 67.2 77.9 431)9 37 o6 ,·36o0 36.9 34.7 44.6 34.4 30o3 43.2 ?2.2 58.3 59.5 58.2 48 .. 9 157o9 164o9 147.2 146.9 146o3 230 .. 1 223 .. 2 206o7 205.,1 l95o2 65.2 76 .. 0 59.8 58.8 61o2 36o5 36 .. 7 32"2 29e6 32.9 62.2 134oO 196.2 1939-43 :1944 1945 1946 .•: '·1948 : : : 1~47 . .•z ..• 1949 1950 191.$1 19~2 . 195'.3 ') ~ ;:.~ 1j54 y / cq Year ' ' ' '',I '1 -< "· beginning October 1. . y ' Subj~ct 63.~ 28.7 39.3 27o6 29e2 28.3 ' 14.9 24S 31'15 a6,o 29.5 31.9 29.8 31.2 4o.o 37.6 33.8 37.8 to revision. On April 1~ the Department announced 34.6 cents as the minimum level at which the 1955 crop of fire-cured tobacco would be supported. The support for fire-cured is computed at 75 percent of the burley support level. If burley parity and, consequently, its stipport level are higher as of Ooteber 1 1 1955, the actual price support for the 1955 ·fire-cured crop would also increase. Ifthere ·!3hould be a decline, the a:hriounced minimum will become the actual support for 1955 crop marketings of fire-cured tobaccoo 'jJ' During the 1954 crop marketing season, about 6.9 million pounds of fire-cured (11 percent of the crop) were placed under Government loanncom• pared with 8.2 million pounds (17 percent of the much smaller crop) in the 1953 marketing season. In the 1954 season, 20 percent of type 21, 7 percent ·of type 22, and 15 percent of type 23 went under Government loano The volume of Virginia type 21 placed under loan was much mgher than a ') year earlier, but that for type Q2 was far lower and the smallest for any :[ season since 1945. For type 23, the loan volu.>ne was only moderately above -r,·that in the 1953 season although the 1954 crop was much largero TS-72 - 29 - The quantity of fire-cured remaining under Gover~~ent lean at the end of April 1955 totaled about 52 million pounds (farm-sales weight). The 1954 crop accounted for nearly 13 percent of this total; the 1953 cropJ 13 percent, the 1952 crop, 14 1/2 percent; the 1951 crop, 9 percent, and the 1946-50 crops, the remaining 50 l/2 percent~ Of the nearly 157 million pounds placed urJder Government loan in the 7 seasons prior to 1954, about 71 percent had been moved into trade channels by April 30, 1955, Dark Air-Cured and Sun-Cured, Types 35-37 1955-56 Supplies According to farmers' intentions as of March 1, the 1955 acreage of dark air-cured and sun-cured tobacco was indicated at 23,800--9 percent less than the 1954 harvested acreage. The indicated acreage of KentuckyTennessee dark air-cured (types 35-36) was down about in line with the reduction in acreage allotments from a year earlier. The 1955 acreage allotments for type 37 were about the same as in 1954 but intended acreage was up about 5 percent--indicating that allotments for this type may be·more fully planted than in 1954. Based on intended acreage and yields. per acre about equal to the recent 5-year average (adjusted for the abnormal lows for all types in 1953 and type 35 in 1950), the production of dark· air-cured and sun-cured tobacco in 1955 would total about 30 million pounds$ This would be 13 percent less than in 1954 and probably the fourth smallest in histor,y. In 1954 yields p~r acre for the KentuckyTennessee dark air-cured were the highest on record, The carryover on October 1 (beginning of the 1955-56 marketing year). is estimated at about 78 million pounds--3 percent above last Octo. ber 1. The new crop plus this car~ycver will provide a total 1955-56 supply of around 108·million pounds--about 2 percent less than for 1954-55~ Domestic ~·and Exports · During the marketing year October 1954-September 1955, domestic use of dark air-cured is estimated at 22 million pounds--~ little lower than in 1953.-54e Chewing tobacco manufacture--the main outlet--was lower in the first half of the current marketing year than in the like period of 1953-54~ · · Exports of the dark air-cured types were sharply higher during October 1954-March 1955 than in the comparable period a year earlier and may total around 10 million pounds (farm-sales weight) for 1954-55 as a wholeo During the first half of 1954-55, exports of One Sucker (type 35) were nearly twice as much as in the whole of 1953-54. France got a substantial quantity and nearly 1 million pounds went in March 1955 to Madagascar--not heretofore an outlet for this tobacco~ This was attributable to the program under Section 550 of the Mutual Security Act of 1953, under which local currencies were accepted for exports of surplus commoditieso Belgium took considerably more than in all of 1953-54. First half takings of Nigeria were much lower than in the same period a year earlier and Netherlands also to9k moderately less. The exports of Green River tobacco (type 36) during October 1954-March 1955 were substantially larger than in TS-72 - 30 - all of 1953-54# First half 1954-55 takings by the United Kir..gdom (the leading outlet) were over 60 pe.r.oent above the same period of 1953-...54. A substantial quantity went to France &"'ld. also some to Ireland in eontrast to none in the comparable period. of 1953-5'4. However, much less went to , Netherlands (second ranking outlet in 1953..,.54) and none was recorded as going to Belgium~ Exports of Black Fat during October 1954-March 1955 were 60 percent ahead of those in the same period a year earlier. Nigeria and Gold CoastJ accounting for nearly three-fourths of the total, took 47 and 57 percent more, respectively~ Black Fat to French 1rJest Africa more than doubled. Table 12.- Dark air-cured and sun-cured tobacco, types 35-31; supplies, disappear~1ce, and season average price, averages 1934-38 and 1939-43, annual 1944-54 Year Average: 1934-38 1939-43 . (Farm-sales weight~ : Average :__: ~p_~a::.9e !1 :Product~on~ 0 ... .~. .~,:Supply a Total :nonwftic~Exports :price per : '-' V 0 : ; : ...t. 1 : 2/ 1· .. pound ...... -......:,; J'!Jillion M.illiotl Nillion :Hilllon Million Million Cents : pou~ pounds pounds pou!lds Eounds pounds_ : . ~Stock ' ---- 35~5 36 .. 7 62e8 6C:.,.,.J.. 1944 1945 1946 1947 1948 44-9 h3.,6 h9.6 .37l)2 57.7 60.4 60.4 72~ 7 1949 1950 1951 1952 1953 36.2 28,6 31.7 1954 t 34~8 33~8 261)6 y Domestic 34 .. 6 ~..--.... 98<;..3 101~8 1021>6 104~0 110,0 109~9 77o2 112v0 74.5 80.8 79oal 110.7 109.4 104o7 108o4 l05o7 75\)8 110.,4 73~0 74~6 39e0 36.4 27(!0 3le9 42~2 35.9 30.5 29 .. 7 26.3 22.7 43o6 37.3 32.7 37.5 29.9 36~4 30.1 29.3 29&9 23c.l 25.6 21 .. .5 22,7 22e8 121'>0 4o5 6.3 9.4 13o9 23.3 13~1 25~2 7~6 6~4 146)8 22.5 25.8 28.7 6~8 . 28.2 24.6 34.3 31.6 25$9 10,.8 Bt.6 6~6 7·1 34.1 1/ Year beginning October lt Subject to revision~ ~/ Prices The 1954 season average price for dark air-cured and sun-cured tobacco combined was 34ol bents per pound--8.2 cents higher than for the 195'3 crop, which was of cons~_derably lower quality. season averages for the Kentucky-Tennessee types 35 and 36 were 34&1 and 34~7 cents per pound, respectively, and were near-record and record highs for these types, The Virginia sun-cured average price was 32.2 cents--slightly above 1953 and 1952 but a little below 1951 and '1950.. The Government support level for the 1954 crops for dark air-cured and sun-cured tobacco was 30.9 cents per pound~ TS-72 - 31 - On April 1, the Department announced 30.8 cents as the minimum level at which the 1955 crops of dark air-cured and sun-cured would be supported. The support for these types is computed at 66 2/3 percent of the burley support level. If burley parity and, consequently, its support level are higher a6 of October 1, 1955, the actual price support for the 1955 crops of these types would also increase. If there should be a decline) the announced minlmum will become the act~ support for 1955 crop marketings. During the 1954 crop marketing season, about 7.2 million pounds (23 percent cf production) of the dark air-cured types 35-36 "'ere placed under Government loan. Deliveries of One Sucker for loans were smaller but, of Green P.iver, were larger than a year earlier. However, in relation to the larger size 1955 crops, both types had the smallest percentage in .4 seasons. Relatively little Virginia sun-cured type 37 was placed under loan. The quantity of dark air-cured tobacco remaining under Government loan at the end of April 1955 totaled 37 million po~ds (farm-sales weight). The 1954 crop accounted for nearly 19 percent of this total; the 1953 crop, 18 percentj the 1952 crop, 23 percent; the 1951 crop, 17 percent; and the 1947-50 crops, the remaining 23 percent. Of the 72 million pounds placed under Government loan in the 7 seasons prior to 1954, about 58 percent had been moved into trade channels by April 30, 1955. Cigar, Types 41-62 1955-56 Supplies Filler: The prospective acreage of continen~al filler types, as indicated by farmers' intentions as of March 1; is 29,8oO--moderately lower than in 1954. The intended acreage of Pennsylvania type 41 (84 percent of continental filler acreage) is smaller but the Ohio filler types 42-44 acreage was up a little. Based on intended acreage and yields per acre about equal to the 1950-54 average, filler production this year will be near 46 million pounds--10 percent smaller than in 1954. In the Ohio area last year, yields per acre were unusually heavy and above any previous year. The carryover next October 1 seems likely to be around 125 million pounds--4 percent less than last October 1 and the smallest in 7 years. The 1955-56 total supply--this year's crop plus carryover--may thus ap- · proximate 171 million pounds--5 or 6 percent below 1954-55 and below any previous year. Puerto Rican cigar filler (type 46) is planted in the fall and harvested mostly in the early months of the next calendar year. The last estimate from Puerto Rico for the 1954-55 crop is 32 milllon pounds--6 percent below 1953-54. Manufacturers' and dealers' stocks of Puerto Rican tobacco on April 1, 1955J totaled nearly 55 million pounds--up about 6 percent from a year earlier. Stocks in the United States showed the increase While those on the Island held about even with a year earlier. TS-72 - 32 Table 13.- Shipments of tobacco Prom Puerto Rico to the United States, for specified periods ·: Classification Stemmed LJnstemmed Scrap Total Average 1947-Sl 1952 iYlillion pounds NIIiion pounds 9.9 .8 6.1 16.8 195.3 1954 Eounds pounds 14.6 .6 6s5 11,1 .9 14 .. 6 h.2 5Q4 21.7 16.2 20.8 . Millian·--Million ~8 Compiled from publications and records of the United States Department of Commerce. Binder: Based on farmers' intentions as of March 1, the 1955 acreage of the combined binder t-rpes is indicated at 31,500--8 percent above the 1954 harvested acreage. Intended acreage of Connecticut Valley Broadleaf (tYPe 51) is up quite sharply but the Connecticut Valley Havana Seed (type·)2) and Wisconsin (types 54-55) were up about 2 to 5 percent. It appears that acreage allotments in the binder types may be more fully planted thap heretofore. If yields per acre should €qual the 195o-S4 average (19t4 yields in the Wisconsin types were at record levels), the 1955 production of the combined binder types would be about SO million pounds--5 percent greater than in 1954. The carryover of cigar binder types next October 1 is estimated at about 115 million pounds--4 percent below last October 1 and the smallest in 9 years~ The 1955-56 total supply-carryover plus this year's crop--at around 165 million pounds may be 2 or 3 million lower than for 1954-55 and the smallest on record. Wrapper: The prospective acreage of shade-grown wrapper according to March 1 indications is 13:000-•the same as that harvested in 1954. Based on this acreage and yields per acre averaging about the same as 1950-54, the 1955 production would range between 15 to 16 million pounds compared with 16.4 million ln 1954. Last year, the Connecticut Valley type 61 yields averaged the second highest on record and the GeorgiaFlorida type 62 yields were the highest in history. The carryover on July 1 is estimated at a little over 18 million pounds--not greatly different than last July 1, which was the lowest in 5 years. The 1955-56 total supply--carryover plus production--probably will be 33 to 34 million pounds compared with 34.6 million for· 1954-55. TS-72 .,. 33 Table 14.- Cigar tobacco, types 41-55: Domestic supplies> disappearance, and season· average price, averages 1934-38 and 1939-43, annual 1944-54 __ ---=- ___ - ._ (Farm-. sales we1.· ght~)__ Type and yee.r :Disappearance: Average · · year b eg1n:pr1ce per nj_ng Oct. 1 pound Million Million Million --pounds pounds pounds Cents . . Productiovu ...· Oct. Stocks,:: 0upp c 1y 1 Nillion £OUnds Filler types 41-44 Average: 48.9 60.0 154.1 159·9 208.8 214.0 54.4 59·3 10.4 13.6 1944 1945 1946 1947 1948 54.6 45.4 57·3 6o.6 68.3 145.4 142.9 128.8 122.2 123.7 200.0 188 3 186.1 182.8 192.0 57.1 59.5 63.9 59.1 6o .1 19.5 32.8 30.6' 25.8 1949 1950· i' 195Jl,. 1952 65.4 65.7 63.0 44.5 44.3 131.9 143.8 157.4 161.0 146.5 197·3 209.5 220.4 205.5 190.8 53·5 52.1 59.4 59.0 61.0 26.2 25.2 19.6·. 25.2' 26.2 51.1 129 8 180.9 41.8 59.8 165 ::.. 130.6 206.9 190.4 60.5 61.4 12.5 19.7 1944 1945 1946 1947 1948 57·7 63·5 74 1 69.4 60.5 108.5 102.3 103.5 123.7 125.8 166.2 165.8 177.6 193·1 186.3 63.9 62.3 53.9 67.3 63.1 30.9 47.7 52.7 . 43.4 41.2 1949 1950 1951 1952 1953 61.7' 65.0 49.8 47.0 47.4 123.2 135.1 142.5 134.8 125.2 184.9 200.1 192·3 181.8 172.6 49.8 57.6 57.5 56.6 52.8 36.0 35.8' 38.1 38.6 44.7 47.7 119.8 167.5 1934-38 1/ 1939-43 - 19~3 1954. -2/ Binder types 51-55 Average: . 26.6 J/: 1934-38 1939-43 1954 34.0 .. 1/ Includes small q~antity of type ~5. small quantity·, of type 56 through 1948 ' g/ Subject to revision. 39·9 J/ Includes TS-72 - 34 - Table 15.- Cigar wrapper tobaccct types 61-62: Domestic suppli~s; disappearance} and season average price, averages 1934-38 and 1939-43, annual 1944~54 - - - - _ _ _ _ _ _ _(~F_ar_rr:-sa1es weig_ht_.)'-7---_ _ - - - Type and : tstooks ~ i Disappearance .l.Werage year ~Production: July 1' =supply :year beginning:price per - - - - - - - - - - ----~ _ : , : .r_uly 1 : pound : M:iJ.li.:m Million Million Hillion : E.;n.i.n~.;;- ,Pound~- pounds poun~L Cents 1.Vrapper types 61-62 pverage: 11$8 20.2 1934..38 8cy4 78e3 9.3 10 0 0 108~7 12o5 22.6 1939-43 9.2 1944 1945 1946 1947 19h8 •• 11~3 .• 12S 1949 1950 1951 1952 1953 19$'4 !/ !/ Subject Domestic 25.6 15 . 1 14e3 14.-7 13&6 13.4 14.5 17;;3 15,,5 14o9 16 .. 6 19o4 201)0 14~7 21..2 14o8 19.3 34.1 18.2 34~6 11~2 13~5 25119 26.1 26,.9 29.6 33.9 34.9 34 .. 9 35.9 10.9 12 .. 3 12"7 1204 13e0 196&1 209.0 234tt.O 296QC 274eO 14.5 14.9 13.7 16e6 151)9 201\!0 203e0 194.0 198.0 202~0 207,0 to revision, ~ ~ Expor.:?! Although the major use of cigar types ia in cigars, sizable quantities, particularly of the lower grades of binder types, are used in scrap chewing tobacco, During the first half of the CUITent marketing year (the 6 months ending March 30), cigar and scrap chewing manufacture were about 2 percent smaller than in the comparable period of 1953-54. Indications are that the to~al disappearance of Pennsylvania and Ohio filler types will be about 56 million pounds~-moderately lower than in 1953·54. Noncigar pobacco types may be contributing larger amounts for domestic cigar filler use~ Exports of filler tobacco were negligible, Estimated disappearance of the cdmbined binder types 51-55 in the current marketing year is 52 million~-only a little less than in 1953-54• Exports of Connecticut Valley Broadleaf (type 51) and Havana seed (type 52) accounted for about 5 and 9 percent of their total disappearances in 1953-54o In the. firs·t hal;f' of 1954-55, exports of Broadleaf and Havana Seed were sharply below those ·in the comparable period a year earlierQ On the other hand, exports of the 1.VisoODS:i.n types, which droppe.d precipitously from 1952-53 to 1953-54$ were up sharply in the first half of 1954-55. west Germany, Switzerland, and East Germany were the leading outlets for the Wisconsin tobacco exports" TS-72 -35 ... The estimated disappearance cf shade~grown wrapper during July 1954June 1955 is about 16G4 million p~ttllds--a.pprf9:x:i..mately one-half millirtn more than in 1953-.54() Exports of cigar wrapper have accounted for roughly one-fourth of total disappearance in the past 3 year3o During the first three-fourths of the current marketing year~ exports of wrapper were 15 percent ahead of those in the comparable period of 1953-541) west Germany .(accounting for over oneE~alf cf the total) took almost the same as a year earlie:::·, but Canada_, S't..ritzerland, and France took sharply more ~~d there were small increases to Belgium and Netberlanda0 Prices n=Prices for the 1954 crop of Pennsylvania filler averaged practically the same as a year earlier but for the Ohio filler types, the average price was more thar1 one-fifth above the previous season whsn, because of below average quality, it was the lowest in 10 years. In the Connecti:::ut Valley, Broadleaf brought a .5'-percent lower average price than the 1953 crop~~ The substantial proportion of lower grades in the Havana Seed crop due to r~il and hur~icane damage lowered its average price considerably~ Average prices were even with a year ago for southern Wisconsin tobacco but up a little for Northern "Hisconsino ·\ -\' on April 1, the Department G.nnounced the 1955 min:Lrnum support levels for the eligible types of cigar tobaccoo If the par~ty level increases by October 1, the begi~!ir.g of the 1955-56 marketing year, the !ct~~ supports will reflect the increasee If parity declines, the announced minimums will be the actual supports, The mandatory support level for cigar filler and binder (types 42=44 and 51-55 as a group) is 90 percent of parityij Pennsylvania (type 41) growers rejected a marketing quota and no price support is in effect for that type~ For Puerto Rican filler (type 46), the support level will be announced as of October 1 for the crop that will be mainly harvested in early 1956~ Puerto Rican filler is not under a Federal marketing quota and the percentage of parity:at which' its 1955 support level will be computed depends upon the supplyo (See table 16 for 1955 minimum support levels by types and 1954 and 1953 data~) During the 1954 crop marketing season, 7 1/2 million pounds of continental cigar tobacco were placed under loan. Also, over one-half million pounds of Puerto Rican filler had been received under loan, but complete marketing season data are not yet available. The loan quantities and percentages of the crops for individual continental types were: types 42··44--1,231,000- pounds~ 15 perg~nt;' type 51~-150 1 000 .pounds, 6 percent; type 52--3,380 1 000 pounds, 29 percent; type 54--1,290,000 potmds; 17 percent; and type 55--858,000 pounds, 5 1/2 percent. PS-72 - 36 Table 16.- Cigar tobacco types 41-62~ Government loan levels season average prices--1953~54, and 1955 minimum supports ' : 1953 ; loan level CentS per pound Type .t - - - - - - - - . ----=- Pennsylvania filler, type 41 Qhio cigar filler, types 42-44 'J'' Puerto Rican filler, •· type 46 "U 1953- : season : average: Cents per :round :y . 1~ 1 1954 : 1955 loan : season :minimum level t average: support Ce~ Cents --Cents per per per pound pound ~ !.1 25.4 25.1 32.4 32.6 ' - { .... 1.,,{ !. Conn. Valley Broadlaaf binder, type 51 Conn. Valley Havana Seed binder, type 52 N. Y. and Pa. Havena Seed binder, type 53 ._~_. Southern Wis. binder, type 54 , i· Northern Wis. binder, r. type 55 ,-:.1 · ., .t · --1~ 51.2 58.4 53.8 54.9 51.5 53·9 50.8 --'·'I •. I ~ :. Conn. Valley shade-grown wrapper, type 61 Ga. -Fla. shade-grown wrapper, type 62 26.1 23.4 25.7 25.4 24.3 25.1 32 .. 0 31.9 31.9 ' 24.0 25.0 24.3 24.5 .,. 32.0 205.0 215.0 195.0 19~~0 y Government price support hot in effect on type 41. .:gj Season aver~ge not yet available. J/ Support level t,o b~. announced Ocfob~.r 1, 1955. !±/ Mandatory loans not applicable. · ll ·..) ,,. I The quantity of cigar tobacco under Government loan or in CCC in;;-,, ventories at the end of April 1955 was 15 3/4 million pounds of vrhich J ·' over 2 million have been sold. The composition of the remaining 13.7 million· pounds is: type 54 (Southern Wisconsin), 34 percent; type 52 {Connecticut Valley Havana See;d), 29 percent; type 55 (Northern Wisconsin), 15 percent; types 42-44 (Ohio filler), 10 percent; type 51 {9onnecticut Broadleaf), 8 percent; and type 46 (Puerto Rican filler), 4 percent. ! '- TS-72 - 37 - Table 17.-· Acreage of tobacco in the Unitea States, by class and tJ'l)e, average 1947-49, annual 1953-55 1 and ~ercenta.ges :Percentage change Class and .type 1954 y 1954 to --------------------------~~~~-=~~~~~ ____ 1,ooo 1,ooo 1,ooo -~~~~-19~5.5 1,ooo Percent acres acres acres acres I :Average: :1947-49: Old and Middle Belt, tY,Pe 11 : Eastern No~t.h Carolina;· type 12 South Carolina, type 13 Georgia and Florida, type 14 Total flue-cured, types 11-14 1.955 1 3 95 355.0 359.0 369.0 327.0 331.0 334.0 207.0 212.0 198.0 124.8 127.2 113.5 1,021.8 1,042.2 993.5 352.0 317.0 204.0 122.3 995.3 ====-========= Virginia, type 21 12,0 9,9 10.0 Kentucky and Tennessee, type 22 39.3 28.3 29.7 Kentucky and Tenneesee 1 type 23 17.6 10.1 12.3 Total fire-: cured, types 21-23 ,-2=-/"6"±9..;....o=---~4~8~.~3---:5:::-::2~.~0Bur_ley 1 type 31 :---- Maryland, type 32 One Sucker, type 35 Green River, type 36 Virginia s1in-cured 1 ty:pe 37 ~.otal dark air-cured, types · . ·35-37 Pennsylvania Seedleaf, type 41 Mi~i Valley, types 42-44 Total cigar filler, types 4144 Con~ect~cut Valley Broadleaf, type 51 Conn, Valley Havana Seed, type 52 N.Y. & Pa, Havana Seed, type 53 Southern Wisconsin, type 54 Northern Wisconsin, type 55 Total cigar binder, types 5155 Conn61va1ley shade-grown, type Ga, &Fla. shade-grown, type 62 Total cigar wra~per, types 61-62 Louisiana Perique, type 72 Total all types : 433.3 419.7 48.0 45.0 Jl 50.0 -4.5 9.3 -7.0 26.6 -10.4 10.7 -13.0 46.6 . . -10.4 ============== 420.9 -4.6 -5.1 -3.8 -3.9 310.0 -26.3 49,0 -2.0 : -10.4 14.8 14.4 17.8 11.4 7.5 7.6 3.2 3.7 4.1 --~~----~~----~- 12.9 6.5 4.4 32.4 26.0 26.1 ================== 27.8 36.1 23.8 -8,8 4.6 25."0 4.8 -10,1 4.3 30.2 32.4 29.8 -8,0 8.4 7.7 9·3 20.8 6.8 8.8 : : 4/41.8 6.2 3,2 .4 .2 4.8 9.5 29.3 . -14.5 7.3 29.2 0 10,1 5.4 5.9 2.0 31.5 7.9 ========:::=::::=====::::::::=-~:::::::::::::::======= 10.2 7.9 8.2 8.2 0 : 4.6 4.4 4.8 4.8 0 : _ _...___ __.;..;____.....;...._ 14.8 12.3 13.0 13.0 0 =========:=== .4 .3 .3 .3 0 :1,676.1 1,632.9 1,666.1~/1,499.3 -10.0 : Y Farmers' intentione as of M:-a.r-c~h--=-1-e_x_c_ep-t:--:f:-o-r-=b-u-r":"l-ey-.~y Includes small acreage of type 24, l/ Approximate allotted acreage after redetermination of quota, !±../ Includes small acreage of type 56. 2/ Includes ap,proximate allotment for burley. -- TS-72 .~'" Tab1:e 1t. · 'l'oba<:co: Yield :per acre in the t7nited Ete.tes, for s:pecified periods 'd th :percent a~ es •• •• ~ 76~· 77'.' 8ll 9~3 • :Fi11er~Bi.lder= :types :41 45 :~l 56 :Wr~er: com- : 784 803 837 958 1,340 1,035 1:,266 1,323 1,256 1,041 1,350 1,039 1,465 954 982 1,526 850 525 925 795 750 1,116 988 1,215 1,054 1,165 1,440 1,261 1,469 1,419 1,566 1,548 1,075 1,115 1,518 1,001 1,094 1,519 '1,000 1,181 1,495 992 1,138 1,524 998 1,274 825 800 785 805 900 1,133 998 1,197 11286 1,022 1,542 1,474 1,594 1,550 1,468 1,561 1,547 1,572 1,532 1,617 11189 1,031 1,170 1,189 1,127 1,256 1,153 1,396 1949 1950 1951 1952 1953 1,191 1,312 1,309 1,229 1,245 1.189 1,102 1,215 1,228 1,013 1,253 1,222 1,355 1,4o3 1,345 -C: S5~- 61-62 :bined 781 683 749 755 1,-069 1,088 1,137 1,135 1,233 ' iJ :'• iJ 807 777 819'· 985 1944 1945 1946 1947 1948' l C')r-. • ------· : Al.l •• • Average: : 1924-28: 1929-33: 1934-38: 1939-43: types t'igar ' Fire- •• ·• Mary-·• D.,.,,k . . ._ Period • cured : cured : Burley : land : air32 ~ured ll-14 21-24 : 31 : 35-37 : F..~ue• by 765 170 865 ' 986 1,108 1,130 1,098 1,124 1,203 1,213 1,269 ll310 1,273 1,261 1954 Percentage change Pet. •• Av. 1947-: 49 to 1954 6.3 1953 to 1954 Pet, ~ 5.9 25.1 18.2 17.8 '.· ,, ~ ~ ~ Pet, 7.6 18.6 4.6 7.0 22.4 11.1 7·5 1.1 5.1 6.4 ~ f.£'h I 1.3 -5.6 29.7 _lf_ Type 45 ended in 1939 and type 56 ended in 1948, 1', TS-72 - 3) - Table 19.- Cash receipts from farm marketings, averages 1936-40 and 1941-45, annue.l 19h6- 5l~ with percentages - - - --;-·- - - - --·cash receipts Tobacco as a :Livestock: All -~p::-ercentage':"'o_f_=-Year and Total Tobacco All Total cash :products crops farm . __ crops ...:·c:..:C'il=-)t_E:._:-~· Million 1'-liTITon Millioo-Million Percent dollars dollars dollars dollars Percent Average: 1936-40 1941-45 1946 1947 1948 1949 1950 1951 1952 1953 1/' 1954 I/ !/ 4,715 10,057 3,491 7,479 8,206 17,536 274 585 7.8 7.8 3·3 3·3 13,730 16,476 17,071 15,359 15,976 19,612 18,445 17,263 16,683 10,834 13 .• 230 13,136 12,585 12,352 13,187 14,248 14,150 13,270 24,564 29,706 30,207 27,944 28,328 32,799 32,693 31,413 29,953 969 1,032 945 8.9 7.8 7.2 7.2 8.6 9·0 7.7 3-9 3·5 3.1 3.2 3·7 3.6 3·3 3·5 3·9 903 1,061 1,191 1,090 1,094 1,162 '"(.7 8.8 Preliminary. Table 20.- Internal Revenue collections from tobacco products for specified periods Cigars Period 1/ Million dollars :Cigarettes:Chewing-ind: · 2f smokiilg Million Million dollars dollars Snuff Total Million dollars Million dollars '3/__ Average: 1930-34 1935-39 194o-44 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 . 14.3 12.8 21.0 344.6 472.0 750.5 56.9 54.9 50.4 6.9 6.7 7-3 38.2 47.5 47.1 46.7 43.6 42.8 44.0 45.8 46.4 44.9 937.2 1,125.2 1,175-9 1,220.6 1,233-1 1,262.7 1,359-9 1,579.6 1,546.0 1,477.1 48.6 38.0 35·9 35·9 34.9 34.3 30.7 17.6 16.7 16.1 7·9 7.1 7-1 7-5 7.4 7.2 6.4 3·9 . 3-9 3-9 423·9 547.6 833·3 1,034.2 1,218.4 1,266.7 1;311.5 1,320.0 1,348.1 1,445.8 1,661. 7 1,613.8 1,542.8 1/ Includ~s small cigars. 2/ Includes large cigarettes. 3/ Total inclUdes cigarette papers and tubes, cigarette and cigar floor-taxes,· and · leaf dealer penalties not shown separately in this table. Compiled from reports of the Internal Revenue Service. TS-72 - 40 Table 21.- Tobacco manufactures: Net sales, net income, a.nd :profit ratios, annual 1947-54, by quarters 1952-54 Year and quarter 1947 1948 1949 1950 1951 Net income Net sales Per of Before ; After Before Federal : Federal :Federal tax tax tax :Million Million Million :dollars dollars dollars Cents .. .; 2,641 3,081 3,061 3,129 31329 178 257 250 281 294 109 159 156 152 129 6o7 8.3 8.2 9 .. 0 8.8 P:rofit : As percentage of doUar stockholders' equity sa.J..es {annual basi~ Before After : After :Federal :Federal Federal ·tax· tax tax . Cents Perce:p.t Percent 4.1 5.2 5.1 4.9 3.9 16.6 22.0 20.2 21.3 21.8 10,1 13.7 12.6 11.5 9.6 Current series lZ 1951 1952 1953 1954 3,378 3,702 3,768 3,672 295 285 338 329 129 120 138 156 8.7 7.7 9.0 9.0 3.8 3.2 3.7 4.2 21.7 19.8 22.9 21.5 9.5 8.4 9.4 10.2 1952 1 2 3 4 846 919 978 959 61 69 8o 75 25 28 33 34 7.2 7.5 17.7 19.1 21.9 7.8 3.0 3.0 3.4 3.5 20~5 7 ·3: 7.7 9.0 9.3 1953 1 2 3 4 875 940 992 961 65 90 97 86 28 35 39 36 7.4 9.6 g,8 8.9 3.2 3·7 3.9 3.7 17.9 24.5 26.1 23.0 7.7 9·5 10.5 9.6 846 932 970 924 72 81 93 83 34 38 44 40 8.5 8.7 9.6 9.0 4.0 4.1 4.5 4.3 19.1 21.3 24.1 21.3 9.0 10,0' 11.4 10.2 l954 1 2 3 4 ..:• 8~2 1/ Not strictly comparable to the series previously published for 194751, but differences in the current and previous series for 1951 are relatively minor. Co~piled and adapted from Quarterly Financial Report, United States Manufacturing Corporations, Federal Trade Commission and Securities and Exchange Commission. TS-2 - 41 - AVERAGE VALUE PER POUND OF TOBACCO EXPORTED FROM TP.E UNITED STATES ~./ An examination of the average declared value per pound of tobacco exnorted from the United States to the leadin~ codntries affords the most re.adily available indication of the quality of takings by individual foreign markets. A table showing the average unit val~e of flue-cured tobacco exported from tl1e United States to major markets for the marketing years 1935-53 was published in the December 1954 issue of The Tobacco Situation. The table i~ republi~hed in this issue, with the data carried . bacK to 1923, the first year that foreign trade statistic$ on tobacco were shown by individual type o~ groups gf typese Si~lar tables for Virginia fire-cured (type 21) and Kentucky-Tennessee fire-cured (types 22-23) are also included~ .Series for burley (type 31), Maryland (type 32), Green River (type 36) and Black Fat are shown for marketing years 1930-53. (See . , tables 23, 24, 25, and 26.) Table 22.- United States exports of specified kinds of tobacco; rr~rketing year averages 1930-38 and 1945-53 !/ ·; wei..=:g;.;;h.:.t.!...)_ _ _ _ _ _ __..._ _ _...,.......,..-- _ _ : Ayeragg_ 1245-53 _ : : Percent : : Percent of total of total Percent : Percent tobacco tobacco Exports Exports of crop of crop exports ·exports : (Farm~sales _ _ _..,o!ft;c.;.vr..::e~r..liia!Cge 19~0-38 ; ,· ~~ Kind or type .f Flue-cured Ky.-Tenn. fire-cured Virginia fire-cured Burley Maryland One. Sucker Green River Cigar leaf ]./ Total .1/ Narketing t Million pounds 371.5 68.5 13.0 12.7 7oJ '7 ~8 4~3 1,8 : t 2/ Percent 52.7 65.4 64.4 4oO 27.9 40.6 21.3 1.2 Percent 76 .. 3 l4ol 2,7 2~6 1..5 1.6 2/ Million pounds 444.0 27.7 6.6 35.6 7.4 6.3 .9 .. 3 100.0 2.5 9.2 Percent Percent 35.1 49.1 51.6 6.2 19.5 30ol 21.6 5.8 25.2 82o3 5.1 1.2 6.6 1.4 1,2 s lo 7 . 10080 years for tobacco begin as follows: flue-cured (types 11-14) and 2/ Total exports excludes Perique but includes Black Fat, which ;has been apportioned among ;fire-cured an~. dark air-cured types •. '}./ Includes Puerto Rican filler (type 46). 4/ Includes es lmated -328,000 pounds of Virginia sun-cured (type 37). Clgar wrapper (types 61-62), July; all other types., October 9 ~[!The research on which this article is based is being carried on under authority 0 the Agricultural Marketing Act of 1946 (Rl'iS, Title II) o • 1 TS-72 - 42 - Average export unit values have been calculated for all principal kinds of tobacco except cigar leaf for which separate export· statistics for the three classes--filler, binder, and w-rapper--were not reported prior to 1949. Table 22 shows the relative position of leading kinds of tobacco with respect to exoort volume and the proportion of production exported. In this table, exports of Black Fat, a semiprocessed product, have been added to exports of the types which normally are used as constituente1 chiefly One Sucker and I~entueky-Tennessee fire-cured. Flue·cured tobacco is the principal kind exported from the United States, usually accounting for approximately So percent of total tobacco exports. With expanded domestic use, however, shipments abroad now are a smaller proportion of the crop than before lnTorld War II, averaging about one-third in 1945·-53 as against one-half in 1930-38. On a volume basis, burley has generally been the second major export type since 1946, but exports normally comprise only h percent of the crop and a slightly larger proportion of all tobacco marketed abroad. Before the war, Kentucky-Tennessee fire-cured ranked after 'flue-cured in volume of ex~ ports. F.xports of these types usually account for a high proportion of production, averaging about two-thirds in 1930-38 and nearly one-half in 1945-53. Bimila.rly, exports of Virginia fire-cured, and One Sucker dark air-cured and Green River dark air-cured, although relatively small in terms of actual quantities, have averaged about one-half, three-tenths and one-fifth, respectively, of postwar crops. ~1aryland tobacco exports also are significant in relation to the size of the crop, averaging more than one-fourth of prewar production and about one-fifth since the war. Department of Commerce regulations ~equire that the declared v~lue of domestic merchandise exported from the United States represent the actual selling price, or cost if not sold, including inland freight, insurance, and other charges to the port of exportation. In the case of tobacco, the declared value thus reflects the producers' sales price plus the following major charges: packing, including cost of container, han~ dling redrying (in most types), transportation, stor1'!-ge, and com.rnissions. As these charges probably do not vary substantially among tobaccos of similar kind consigned to different countries, significant differences in average declared unit value reflect grade differences. Of dourse, there is always the possibility that inaccuracies or inadvertences in the filing of shipers 1 export declarations could affect the derived average unit values. The relative position of individual markets with respect to average declared value of tobacco exported to them has varied, but some general tendencies can be noted. Among the countries vJhich are leading markets for more than one type of United States tobacco, the United Kingdom, Sweden, and Switzerland generally take high ~rade tobacco. Germany tends to take medium-pri~ed grades, while Belgium and Netherlands tend to take the lower-priced grades. TS-72 - '+3 - Table 23.- Flue-cured tobacco, types 11-14: Value per pound of the exports to selected major countries and to all countries, marketing years 1923-53 : : : : : : Year =united: : : : : : begin•: King- rGemany: China rNether-:IrelaDi:Philip-: Auen1ng : dom : 1/ : 2/ : lands : : pines : tralia July 1 ' : :~ Cents Cents : Indo- : : nesia : Japan :Bel illll: All : _3/ r : g : countries : cents cents cents cents cents cents 40.6 39.9 2~.4 4/ 19.0 17.4 40.4 31.5 37.6 39.9 36.8 46.8 41.1 37.0 41.3 42.1 18.1 16.0 13.0 12.7 34.9 21.6 14.5 13.4 Cents Cents f t 1923 1924 1925 1926 1927 : 57.6 : ss.s : 54.8 r 45.2 : 44.0 1928 1929 19.30 1931 1932 : 39.6 : 39.9 : 42.4 r 35.4 r 23.0 r 14.6 21.$ 16.8 17.7 17.2 25.3 25.7 21.3 24.2 18.7 . 14.0 17.4 24.3 16.3 14.9 16.1 14.4 13.4 8.1 11.0 17.$ 13.3 10.9 10.0 18.5 14.6 11.7 9.1 10.3 47.4 39.9 1.3.6 13.6 22.1 17.8 16.4 16.4 14.8 19.4 20.4 16.9 12.7 15.3 13.3 11.2 12.8 26.5 37.8 27.9 31.5 40.0 16.2 21.3 14.1 13.9 14.9 13.1 14.7 13.0 42.8 22.8 26.2 26.7 32.0 10.4 27.1~ 36.!5 21.2 26.1 17.3 1.3.3 34.6 35.6 28.0 24.8 2.0.3 12.4 21.$ 20.6 20.1 18.5 19.9 31.3 39.7 26.8 .39.9 1$~2 Ls.s 1$.9 19.9 14.$ 12.9 14.9 9.7 10.1 9.5 29.0 27.$ 26.6 23.6 17.9 t 1933 1934 1935 1936. 1937 lS.S 11.1 11.8 16.0 2$.4 42.8 39.1 37.6 36.9 16.9 12.4 21.1 12.7 17.1 t I 1938 1939 1940 1941 1942 1943 1944 194S 1946 1947 1948 1949 1950 19$1 1952 ' 42.7 t 24.9 r 29.1 r 29.1 I r r r r f r t t r t f t 36.$ 46.6 55.9 S$.6 63.3 $7.2 53.8 SS.3 64.0 : ~/r 29 •.3 32.2 43.5 66.3 69.6 S4.S 71.1 61.3 : 1953 20.7 9.6 9.6 13.7 14.8 33.8 22.7 23.7 21.9 29.7 20.$ 16.9 18.0 19.$ 6o.o 57.4 ::,1 West GeX'D18Jly after world war u. 2/ Excludes Hong Kong and Kwantung. 3/ Designated as Netherlands Indies 4; Quantity exported negligible. 24.2 26.9 37.$ 35.6 46.5 41.9 38.8 51.5 3S.s 36.1 31.8 28.0 59.9 56.3 62.0 68.0 70.1 24.0 2S.o 62.6 55.0 $1.3 69.2 68.2 69.3 74.9 76.6 $0.9 S4.9 60.7 64.2 66.0 5/32.3 - 30.0 78.4 84.3 86.7 36.9 44.9 40.9 50.6 48.7 59.1 64.6 64.6 prior to World War II. S/ Revised. 6; Preliminary. Cauputed from the declared values and export weights as reported in publications of the United States Department of C01111118rceo - 44- TS-72 Table 24.- Fire-cured tobacco: Value per pound of the exports to selected major countries and to all countries, marketing years 1923-53 Kentucky Tennessee fire-cured, types 22-23 !/ Virginia tire-cured, type 21 and Year beginning: : : : : : : October 1; 1 United : 1 All : 1 1 All 'N th - 1Swit - 1 :Unit d 1G :France: ~ ~r : 1 ~r =Be1gium:Kingd :sweden:coun-rNorway:sweden:Kin~ : er;j'Ytcoun: : an s : 1 : om: :tries: : : an: :tries I I :Cents Cents Cents Cents Cents I I Cents Cents : Cents Cents --- cents - cents cents I : : 11.2 : 10.8 1923 1924 1925 1926 1927 : : 1·1 7.2 9o9 12.7 24.7 23.2 21.8 26.6 18.0 19.1 18.1 17.2 16.1 9.4 13.7 11.8 7.7 8.6 27.0 26,1 22.2 19.9 24.3 20,6 20.3 21.4 17.8 13.4 I 15.5: 18.6: 16.6: 13.2: l5o71 33.2 37.3 31.5 30.6 27.0 37.1 32 • .3 3/ 2"$. 7 25.0 61.7 52.0 60.6 28.9 27.6 27.6 40,2 31.7 29.2 28.7 35.6 36.2 21.6 20.9 23.0 19.0 23.7 24.5 16.6 17.2 35.3 : : I 1928 1929 1930 1931 1932 : 10.7 : 10.4 : 8.4 6.4 : 7.2 30.0 27.7 26.8 17.9 6.5 15.6 17.4 16.2 16.0 13.7 11.1 11.7 9.4 7.1 7.3 24.9 23.6 20.0 13.1 21.8 15.0 17.7 19.9 18.9 13.0 18.9: 16.9: 15.9: 9o7: 9.1: 1933 1934 1935 19.36 1937 : 9.5 n.o 14.0 16.3 15.2 12.9 16.4 8.8 11.1 9.9 10.1 11.2 17.3 19.8 18.5 19.3 20.7 12.6 18.1 15.8 17.2 19.5 10.9: 11.9: 11.6: 1.3.3: 14.6: 17.7 17.8 18.6 18.0 18.7 9.8 9.0 18.3 15.6 16.3 19.0 28.6 18.7 17.3 13.11 12.8: 17.2: 19.1: 23.2: 25.7 45.0 46.2 46.8 20.3 29.0 42.9 39.8 23.5: 19.9: 34.4: 42.0: 40.6: 37.6: 40.41 39.6: 45.1: 49.3: : 11.4 9.9 : 11.1 : : n.o : : 1936 1939 1940 1941 1942 I 12.8 14.3 15.5 18.8 19,1 18.6 35.6 24.7 29.8 34.8 21.2 27.8 2,3.0 26.0 20.8 31.3 32.1 30.1 26.3 22.1 19.2 23.7 22.2 24.2 23.2 20.3 22.0 24o5 19.3 24.7 19.1 28.9 26.3 29.3 27.7 25.1 24.3 22.6 26.8 25.7 23.7 21.7 ------- 25.7 23.9 23.7 24.7 24.1 28.8 23.2 20.3 23.7 33.2 24.5 --37o7 2$.0 36.6 41.2 51.4 46.0 34.8 46.0 48.0 48.0 54.1 50.4 54.7 59.2 5.5.9 26.9 t 17.~ 21.7 2~.5 24.0 23.8 I 9.9 9.4 --:: ----: 15.4 15.2 15.6 : l 29.9 32.4 --- 34.5 19.0 20.3 23.2 22.1 22.0 23.7 28.8 t I 1943 1944 194$ 1946 1947 I 32.8 --24.0 46.0 18.3 21.6 28.0 32.7 : 31.4 t 34.9 t 36.7 : t : t 35.3 41.2 28.3 32.2 32.0 31.1 38.2 43.1 40o5 43ol 48.3 42.3 47.1 44.8 42.1 55.1 34.8 31.5 32.6 .39.2 33.7 so.o 40.0 44.9 44.2 $8.1 40.2 42.6 43.7 49.5 $1.5 48.5 57.6 34.2 68.4 55 .. 0 39.9 : : 1948 1949 1950 1951 --r sa.s : 1952 33.3 50.3 55.3 53.3 29.4 .)8.6 45.4 49.1 47.4 59.0 62.2 47.1 50.1 49.5 58.8 $0.3 52.2 58.5 61.0 48.6 68.8 75.3 41.3 49.0 65.9 66.1 68.7 51.6: 62.6 $9.1 65.9 73.2 6,3.3 r 53.1 56.3 66.3 63.5 : 1953 l!l : t t : 49.7 2 !:,/ Prior to World war II, includes some type 24 which became negligible thereafter. 2/ west Germany after World war II. 3/ Total value negligible. ~/ Preliminary. Canputed from the declared values and export weights as reported in the publications of the United States Departlllf3nt of COI1ll1Srce. TS ..72 - 45 - Table 25e ... Burley and Maryland tobacco; Value per pound of the exports to selected major countries and to all co"J.ntries, marketing years~ 1930~53 - - - ,- 4~ Maryland, t,YPe 32 year : Bur1ey, ~.~ypa .-- 1 2/ 3/ begin-:: : : -: : · : All : . : ...:,...._....:..-..:- - --=~A~_l-:::-1ning :Ge~B;nY: Bel., : Portu-:swedan: Den- :Nether-: coun-:Smtz~r-tNer.her~:Franca 1 coun... oct_, 1:. y : gium : gal : :mark t lands ~tries; lana : lands : :+-ries :~i ···cents Cents Cents Cer~t,s Cents Cents Cents~ Cents Cento Cez:'ts Cer!t.s 15o6 1930 1931 1932 1933 1934 9~t7 9~1 12o0 22.0 1935 25oO 1936 : ,26.1 1937 : "';32 oO 1938 "' 16o 7 1939 : 1940 : 1941 1942 1943 1944 --- 19.,2 6..,1 15.8 7~5 13S 8.,6 14el 9.7 16!i3 10o4 16~2 11~4 19 .. 1 20.'7 11~6 15.4 20~8 1463 19<J6 20~0 --- .,. __ 23~a7 20.1 40a2 281)1 37!19 : 1945 : 1946 1947 12~6 43o7 23o6 21Q3 17~1 14.6 13o0 lOf!J 9t-3 11o2 11.0 10e6 18..,0 •"26.,4 29,6 39 ..1 49 .. 8 .39!;0 14eO 2lo4 14~6 181}9 18 .. 0 18o3 15(l2 15v3 13o4 16oO · 33o5 31o8 2.?c6 27,.0 34o8 62o8 lha4 17.9: 12elt 1949 35o6 31o8 33o3 32o9 58.,6 12.9: '.32a8 21c4 ;1.6.3, 40o5 2lo1 38e6 23o7 : 18a6: 23$1: 2390: 2134: 21~ 7: . 43o3 7e9 36a5 38el 3.?a9 33o7 833 20t0 20~4 31Q3 llo5 8o7 22~0 8~7 24.2 20J4 39o0 51$9: 36o9 40o2l 47 ~4: 46;}7: 4Js0: 32.8 24.? 36.1 31o3 38,8~ 29t5 35tO 40e6 44~0: 4le9 42Q5 62Q3 56e9 63e2 73QO 551)8 26!)3 71o4 74(>8 46a2 30e7 59.8 63o8 79o3 83e7 82e7 33o7 64c9 ~9o2 72')3 66~;2 49~t5 27~0 : 39.0 1lS 51o0 77o4 45~2 74~9 30o8 ~5fjl: 26~3: 60e9 32o2 32.6 33,.0 33.1 22~9 '30~0 23o9: 73:.9 61<}3 59.7 54o2 1948 20o9 10e9 . 8.9 7<>8 ll()l · llo9: : ...._ 16o3 48o4 46.,1: 52o0: 53"2: 5lo9: 80oo ---=------------- ____ !1 West Germany after World War II~ . 2/ Prior to .1949, export 2_ _ _ _ 34oO 30~8 --- 66e5 61,4 ~--- - - - class ca1:;I,$d "Maryland and Ohio Export..,n 3/ 1930 and 193T, and 1940-44 are on calendar yeai'~·basiso Quantity exported neg!igibleo Preliminary$ Y 2J Computed frpm the declared values and export weights as reported in the publications of the Uni.ted states Department of Commerce., . <-:•J TS-72 .. 46 - Table 26.- Black Fat and Green River tobacco: Value per pound of the exports to selected major cbuntries and to all countries, marke~ing years 1930.._5.3 1930 1931 1932 1933 1934 1935 1936 1937 '1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 ,1949 : : t : 22~0 I : 31.8 19.3 13.8 25¢5 18~4 19.6 28.4 13<)3 24~5 25~1 16o7 17o0 17.5 17"3 19-e-S : 191)3 : 19.3 20.2 : 25.3 28,1 33Q6 15.5 16s3 22(;0 18.9 16.3 17o2 18.8 l8t0 17.6 18e4 19.4 19.8 21.7 22.6 23e4 23.3 21~2 26~2 t '.27*4 33.4 25o2 24ol 1G<t3 15e9 13.,,5 13e~5 13"8 14.4 15~6 41.9 42o4 50.8 37.0 55~4 56,8 56&6 42.2 46e7 53.9 31~8 43.9 42t15 59~3 . 57.3 62.4 63.6 621)1 66,.2 40c4 67.6 74a9 8lc;4 80o3 42.2 44.3 l-95.3 3.,/ : 67e0 77,2 84.8 84.8 ' 19.50 1951 '1952 y y 2 '7 (,2 19&8 I 16t8 I 14,6 : 15.0 16,2 ' 20.7 47.4 26,4 16"3 12(;9 16.4 27o8 11.8 22"7 ' 23.6 '251!8 13.6 23t~8 22s2 : : 30,6 12o0 14e0 12o3 14.4 .. 36.5 32.1 43.9 : 40~2 31,2 28o0 49.1 50,8 39.3 37.7 41.0 36.8 41.6 33(11 38.,6 36e8 32e1 40s0 ' 40.9 46.0 37.5 51.1 491)2 37.7 54.7 t 54.9 60.9 : 51.8 53e4 26~t9 23o6 22~3 30w4 44,0 : Also Dark African and water Balere Preliminary, Computed from the declared values and export weights as reported in the publications of the United States Department of Commerce. TS-72 - 47 - In the case of flue-cured, the United Kingdom, Ireland, and Australia take tobacco of higher-average unit value than for the type as a whole; although since exports were resumed to Japan in 1950, the average value of shipments to that country has exceeded that of any other destination. Germany, the Philippines, Netherlands, and Belgium generally receive fl1,1e-cure·d of lower unit value than the general avera,ge. China, in prewar years the second ranking market for United States flue-cured, took low average value tobacco in the thirties, but in the post-World War II years in which exports vrere made to that country, average value of takings tended to be higher than the general average. -~ Among our leading burley export markets, Sweden, almost without exception, purchases high average value tobacco. Germany and Denmark usu~lly rank next as recipients of the better grades. In most postwar ·· year.s, the average value of burley shipped to Belgium, Netherlands, and Portugal has generally ranged about 60 to 80 percent of that for the type as _a whole. .. In· the case of Kentucky ~Tennessee fire-cured, the United Kingdom, Sweden, and Switzerland have been markets for the better grades. The average unit value of exports to France traditionally our principal outlet, has usually been below the average for all destinations. The Netherlands, which before the war took higher than average value tobacco, has tended in postwar years to purchase tobacco slightly to moderately below the general average. Belgium is a market for lower than average value Kentucky and T~~essee fire-cured, as it is for flue-cured and burley. The average value per pound of Virg~ ~-cured exported to the United Kingdom and Germany tends to be higher than that for all countries. Norway, o~ principal foreign market for this tJ~e, purchased high value tobacco in the immediate postwar years but more recentlyJ the average ~alue has tended to be slightly below that for all destinations. The unit values of postwar exports to Sweden have been slightly to moderately lower than the general average, although before the war the reverse was true. Switzerland, our largest market for Maryland tobacco; purchases the highest average value tobacco of this type. Many Swiss smokers prefer cigarettes made principally of choice Maryland tobacco and also a sizable quantity of these cigarettes are exported to Italy. The average value of exports to France has usually been above the general average, but that of the Netherlands has been substantially lower. The United Kingdom has not been an outlet for as high a proportion of the United States exports of Green River tobacco as before the war when it accounted for about two-thirds of the total, but it has remained a major market for this type. As in the case of other types for which the United Kingdom is a principal market, the average unit value of Green River tobacco exports has tended to be higher than the average for the type as a whole. TS.. 72 .. 48 .. Chief markets for United States exports of Black Fat are Nigeria, Gold Coast, and French Africa, which to~ether accounted for about 70 percent of the total in prewar years and nsarly 85' percent of a reduced total in the postwar period, The average unit value of exports to the Gold Coast and Nigeria since 1930 has invariably been higher than the general average while that to French Africa has been lower. Several ta.otors account for the variation in grades (as reflected in average unit v•lues) of tobaoco exported to l@ading markets. Income is a factor; c~~tries of relatively high per a~ita incomes as United Kingdom, Switzerland, Sweden, and Australia are outlets for better grades. In addition, the following special factors also appear to have some effect: the lev.el of import duties, the pattern of consumption, the existence of government monopolies, and the extent of competition among manufacturers in nongovernment monopoly countries. For example, the United Kingdom's high duty on imported tobacco, which now accounts for approximately 80 percent of theretail price of cigarettes, may encourage the purchase of high grade tobacco since the original tobacco cost comprises such a small fraction of the final cost to the consumer, This may also be true in the case of Ireland •. Another reason for the high quality of British flue-cured takings, as well as those of Australia and Ireland, may be the fact that cigarettes consumed in those countries are generally the straight flue-cured type. Therefore, the quantity of lower grades that can be used without noticeably affecting the quality of the finished product is limited. In some government monopoly countries, revenue considerations probably outweigh quality factors. Some of these countries, like France have tended to confine their volume purchases to low average value tobacco in order to keep down costs and thereby increase revenues. In other United States tobacco markets like Belgium and Netherlands, where there is keen competition among manufacturers,. there is also a tendency to purchase lower than ave;ra.ge valJ.le toha.coo to reduce production costs.