Tobacco Asia

Volume 19, Number 2

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Page 64 of 79

tobaccoasia 65 STORY TELL YOUR BR AND WITH BOEGLI-GR AVURES Boegli-Gravures can help you to develop subtle, refined and ingenious ways of elevating your brand's characteristics and enhance your consumer brand experience. Let us partner with you to bring new dimensions to your marketing. Patents pending. Tobacco manufacturers established exclusive high-quality leaf tobacco production and supply bases in favorable tobacco-growing regions, which has greatly contributed to increasing their already sufficient reserves of raw materials. As a result, some tobacco manufacturers ended up completely divorced from reality over time, with their planned demand for raw materials exceeding the actual de- mand, making any preexisting imbalance between supply and demand all the more serious. More- over, promotion of modern tobacco agriculture has also played a role in arousing the enthusiasm of farmers to grow more tobacco, further exacer- bating the problem. Leaf tobacco inventories held by tobacco man- ufacturers have remained high, turning out to be a major barrier to sustainable healthy development of the tobacco industry. The target of the general planning by STMA calls for reduced production and supply of leaf tobacco, as well as reducing existing inventories in the next three years. Throughout this process, the pace in transformation of leaf tobacco produc- tion and marketing has increased. The goal of this transformation is quite clear – to introduce mar- ket forces into leaf tobacco production based on real demand. Just like the market-oriented reform launched in the field of cigarette marketing, control mea- sures over tobacco growing are set to get rid of the old model of development incrementally. In a certain sense, "control" is a means and a process. To introduce the market-oriented way of thinking in tobacco reform is a way to adjust and control tobacco production and marketing, which will be in favor of comprehensively pro- moting the capacity of accurate adjustment and control of raw materials production, thus to form a healthy and standard pattern of the chain of the tobacco industry. While "control" is implemented, "stability" should also be maintained. Both the management and the staff of the tobacco monopoly administrations in the tobac- co-growing regions nationwide strongly feel that while it is very difficult to develop new tobacco- growing zones, getting existing tobacco-growing zones to shrink and degenerate will be difficult. Tobacco growing takes a lot of hard work, a great deal of time, and involves big risks. In re- gions with a relatively developed economy, the amount of income from growing a mu (0.067 hectare) of tobacco is about 1,000 yuan (US$162) – a moderate level of income for farmers, on par

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