cigarette output and tobacco exports -...

32
THE FOR RELEASE MAR. 7, A. M. BUREAU OF AGRICULTURAL ECONOMICS UNITED STATES DEPARTMENT OF AGRICULTURE ....: .... :.-----------------_-_- tJ n t' FE 8 R U A RY 19 52 rs-s9 CIGARETTE OUTPUT AND TOBACCO EXPORTS BIL.CIGS. 40 20 MIL.LBS. EXPORTS I - 1950-51 -+---- , _ ___, 4 0 av. o..._ ........ JULY JAN. JULY JAN. JULY U.S. UEPARTMENT OF AGRICULTURE NEG. 48452-XX BUREAU OF AGRiCULTURAL ECONOMICS During the last half of 1951, cigarette output in the United States was 5.7 percent larger than in the same period of 1950. In October and November, cigarette manufacture was unusually large for those months. In calendar year 1951, total manufacture was a record 419 billion-27 billion more than in 1950. About 95 percent were consumed in this country and by United States forces overseas and the bulk of the remainder were exported to numerous Ioreign countries. During the last half of 1951, exports of unmanu- factured tobacco from the United States were 14 percent above those in the last half of 1950. The larger quantity going to Britain (where stocks of United States tobacco were very low) was the major factor contributing to the increase. Total exports of tobacco during calendar year 1951 were 521 mil- lion pounds (export weight)-43 million pounds more than in 1950. The total for 1952 is likely to be moderately lower than in 1951. In late January, Britain announced that her tobacco imports would be cut.

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Page 1: CIGARETTE OUTPUT AND TOBACCO EXPORTS - …usda.mannlib.cornell.edu/usda/ers/TBS/1950s/1952/TBS-02-09-1952.pdf · cigarette output and tobacco exports bil.cigs. 40 20 mil.lbs. exports

THE FOR RELEASE MAR. 7, A. M.

BUREAU OF AGRICULTURAL ECONOMICS

UNITED STATES DEPARTMENT OF AGRICULTURE

....:....:.-----------------_-_- tJ n t' FE 8 R U A RY 19 52 rs-s9 ~HII

CIGARETTE OUTPUT AND TOBACCO EXPORTS

BIL.CIGS.

40

20

MIL.LBS.

EXPORTS I

- ~1951-52 ----~so

1950-51 -+---- , _ ___, 4 0

av. o..._ ........ _.._._"""--~___._---_,__..._&.......L---~.--~-......_,__.__._....~........._""'-'-~o

JULY JAN. JULY JAN. JULY

U.S. UEPARTMENT OF AGRICULTURE NEG. 48452-XX BUREAU OF AGRiCULTURAL ECONOMICS

During the last half of 1951, cigarette output in the United States was 5.7 percent larger than in the same period of 1950. In October and November, cigarette manufacture was unusually large for those months. In calendar year 1951, total manufacture was a record 419 billion-27 billion more than in 1950. About 95 percent were consumed in this country and by United States forces overseas and the bulk of the remainder were exported to numerous Ioreign countries.

During the last half of 1951, exports of unmanu-

factured tobacco from the United States were 14 percent above those in the last half of 1950. The larger quantity going to Britain (where stocks of United States tobacco were very low) was the major factor contributing to the increase. Total exports of tobacco during calendar year 1951 were 521 mil­lion pounds (export weight)-43 million pounds more than in 1950. The total for 1952 is likely to be moderately lower than in 1951. In late January, Britain announced that her tobacco imports would be cut.

Page 2: CIGARETTE OUTPUT AND TOBACCO EXPORTS - …usda.mannlib.cornell.edu/usda/ers/TBS/1950s/1952/TBS-02-09-1952.pdf · cigarette output and tobacco exports bil.cigs. 40 20 mil.lbs. exports

FEBRUARY 1952 - 2-

STATISTICAL SUMMARY

1951 : LaSt data :avaUable

Item Unit or base

period ----=~-~::-----::---------=---~--~---':as percent. :age of a Sept. Oct. Nov.

Prices received at auctions

Flue-cured :Burley Fire-cured Dark air-cured

: Cents per lb.: : Cents per lb. : : Cents per lb. : : Cents per lb. :

Parity prices Flue-cured ! Cents per lb.! Burley : Cents per lb.: Maryland : cents per lb. : Fire-cured : Cents per lb.: Dark air-cured (35-36) : Cents per lb.: Virginia sun-cured (37) ; Cents per lb.;

55.5 1/ "I/ !I

51.0 51.0 56.7 30.4 27.3 34.3

Parity index 1910-lh=lOO 1 26o Tax-paid withdrawals

Cigarettes, 8lllall. ctsars, Iarse 2/ Chewing and smoking Snuff

Accumulated since Jan, Ci81U'&ttes , 8lllall. Cigars, large 2/ Chewing and sm'l5ldng Snuff

. 1 :

Cigarettes, tax-free Accumulated since Jan. l :

Tax-free Tax-paid plus tax-tree

Stocks, beginning of quarter (farm-sales weight) Flue-cured :Burley Maryland Fire-cured Dark air-cured Cigar, filler 2/ Cigar, binder-Cipr, wrapper

Exports ( farm-sa1es vt.) Flue-cured :Burley Maryland Fire-cured Dark air-cured Cigar

Accumulated since begin• ning of crop year Flue-cured :Burley Maryland Fire-cured Dark air-cured Cigar filler and binder: Cigar wrapper :

Personal income .!if Index of industrial

production 'iJ Percent labor force

employed

Billion 31 Million 504 Mil.tlb. 18 Mil. lb. 3.2

Billion Million :rr.il. lb. Mil. lb.

276 4,064

~ 146 30

Billion

Billion Billion

Mil. lb. Mil. lb. Mil. lb. Mil. lb. Mil. lb. Mil. lb. Mil. lb. !'.il. lb.

Mil. lb. Mil. lb. Mil. lb. l4il. lb. Mil. lb. Mil. lb.

Mil. lb. Mil. lb. Mil. lb. Mil. lb. Mil. lb. Mil. lb. Mil. lb. Bil. dol. 1

3

23 299

71.8 5.6 .7

2.3 .7

1.9

135.3 40.9 7.4

29.1 6.2 6.3 l.S 232

2ll

55.0 1/ '!/ y

51.2 51.2 56.9 30.5 27.4 34.5

261

30 554 19

3.L.

306 4,618

165 34 3

26 333

1,857 1,000

6o 165

80 195 135

23

69.3 3.8 1.0 1.7

.6

.6

204.6 3/ 3.8 "J/ 1.0 "J/ 1.7 "51 .6 "'}/ .4

1.7 234

216

97.0

52.2 49.6 36.4 32.1

51.5 51.5 57.3 30.8 27.6 34.7

263

30 545 15

3.3

336 5,163

180 37

3

29 365

51.4 3.1 .3

2.7 .5 .4

256.0 6.9 1.4 4.4 1.2 .a

1.8 236

215

nee. 1 Sept.

. I

43.8 48.2 35,3 I

25.3

51.9 51.9 :. 57.8 31.0 27.8 35.0

26.'5

25 ' 315 I' 10 I

3ol I

361 5,538

191 I

40 r t

3 I

32 I'

393 : :

r r

r I

r :

42.$ I 2,2 I

.Sr 5.0 t 1,2 I

.3 J

I

~

r

51.8 1/ "I/ y

56.1 55.3 6o.6 33.6 29.6 37.5

282

31 491 17

2.9

285 4,221

141 29

3

28 313

76.7 2.1 .7

2.8 2.0 .9

298.5 r 147.6 9.1 r 30.0 1.8 r 8,4 9.4 r 39.8 2o3 I 10,3 1.0 3.7 1.9 1,2 244 ' 254

218 219

96o4 I 97.5

Oct. Nov.

56.1 1/ "I/ y

56.3 55.5 60.8 33.7 29.7 37.6

283

38 591 12

2.1

323 4,812

153 31

3

1,935 981 64

147 72

205 142

25

92.2 3.4 .7

2.3 .6 .7

239.8 3/ 3.4 "51 .1 "51 2.3 "51\ .6 "J! .4 - 1.5'

258

218

50.7 54.2 37.8 34.8

56.5 55.1 61.1 33.8 29.8 37.8

284

34 554

20 4.1

351 5,366

173 36

4

35 392

61.4 2.2 .6 .

3.0 .a .4

301.3 5.1 1.3 5.3 1.3

.6 1.7 256

219

Dec, : 7eer

43.7 52.1 39.1 33.8

56.5 55.1 61.1 33.8 29.8 37.8

284

24 368 ll

3.3

380 5,735

184 39

4

39 419

61.0 2.4 .4

2.9 .9

1.0

362.3 8.1 1.7 8.1 2.3 1.1 2.2 257

218

: earlier

100 108 111 134

109 107 106 109 107 108

107

96 98

110 106

105 104

96 96

133

122 107

104 98

107 89 90

105 105 109

144 109

80 58 75

333

121 89 94 86

100 110 116 105

100

101

Includes PuertoRican. 3 Beginning of crop year. Seasonally adjusted monthly totals at annual rate.

Page 3: CIGARETTE OUTPUT AND TOBACCO EXPORTS - …usda.mannlib.cornell.edu/usda/ers/TBS/1950s/1952/TBS-02-09-1952.pdf · cigarette output and tobacco exports bil.cigs. 40 20 mil.lbs. exports

TS-59 - 3 -

~~--~~-~---~--------T .. HE .T.OBACCO S.ITUATION - - - -- - .... - ~ - ·- - - - ~ - - - - - -Approved·tr, the Outlook and Situation Board February 26, 1952

- _,... __ ---~- -- ---- ----· ----- --- ----

:·-surnrnary , • .,·o·G>, ••.•• o •• a.,••o : Tobacco products' , ......... f) : Cigarettes ., •••••••••• ~. : ~ '. Cigars o, ••••• .& ••• ..: •• , , • eo

:' ·· SmOking· tObacco o ~., ~,.,.. ~ ·Chewing tobacco ~ •• ~ • o "e •

Snuff o ...... ,., • , • ~ ••• ., ~ •• e

Exports of U3 S. tobacco··~ Br~~ish·tobacco situation

. CONTENTS Page Page • --3- 5 Imports into Yo So u"'"uu·14-15 : 5- 8 Flue-cured;) types 11-14 •:•., 15-18 5- 6 Burley, type 31 .......... ee 18·-20 :

· 6- 7 _ Maryland., type 32 ., •• c ••••• 20~22 7 Fire-·curedJ· types 21-:23 ~ ~ o 22-24 8 Dark air-cured, types 35-37 24~26 8 ' Cigar, types 41-62 0 o'H ... u 26·»30 ~

8··12 Tables--Taxes, acreage, and 12·~13 mfs., net sales, etc. o .... 30-32

- -·.---- -~- ~--- ·---· ---------/ S.U111v"'JARY

. .. Domestic demand for mos~ tcbacco is expected to continue strong in the year ~head~. Empl~nent and cdnsumer incomes ·seem likely to reach new highs and t;he consumption of most t·cbacco products probably will be as large as .o~_larger than last year~· Tn·1952 cigarette consumption in ·this country and by its.· citizens overseaS probably will ·exce8d the 1951 record of 401 billion., Total:. outp~t .of cigarettes in 195'1.9 including those for com­mercipl exPOr4 to foreign COUntries, WaS 419 billion--27 billion more than in 195.0~ · · ·

· · Growers of. flue~cured and Burley tobacco, the principal cigarette types, are expected to harvest about the same acreage in l952 ·as in 1951 sinc~_acreage allotments are approximately the same~ If yields per acre are near the ayerages of the recent'. 5 years·' the cut turn of flue-cured and Burl~y will be within about 5 percent of last year1s high production~ The carry-overs of flue-cured and Burley at the beginning of the 1952-53 market­ing year (July 1 for flue-cured and October 1 for Btirley) will be larger than at the outset of 1951-52~ Total supplies of both kinds for 1952-53 probably.· will exceed those of the current yearo However, consumption also is likely to increase ~~d the ratio. of supply to disappearance will not . change very much~ · ·

· . . ·. The. 1'952 ·price support 'levels for flue-cured and Burley tobacco probaQly will be ~bbut as high·as or perhaps slightly higher than the sup­port levels for the 1951 -crops qt.. The price supports for flue-cured and Burley are computed at 90 percent of their parity prices.., The auction mar)!et average for flue-.cured in 1951 was slightly above 52 cents per pound--4 to 5 percent lower than the 1950 crop average, but prices for numerous grades 't-rere higher than a year earlierc. The auction market average for Burley in the recent marketing season was about Sl cents per pound-~ 4 1/2 pe~cent above the 1950 crop average and the hdghest on recor~6

Page 4: CIGARETTE OUTPUT AND TOBACCO EXPORTS - …usda.mannlib.cornell.edu/usda/ers/TBS/1950s/1952/TBS-02-09-1952.pdf · cigarette output and tobacco exports bil.cigs. 40 20 mil.lbs. exports

FEBRUARY 1952 - 4-

Supplies of Maryland tobacco, also primarily·a cigarette type, are at a peako A q~ota was no~ in effect on the 1951 crop and will not be in effect on the 1952 cropt" Government price support will not be available on MarylaJ?.d tobacco when the 1951 crop goes to market this spritlgr.,

Tobacco exports from the United States in the 1951 calendar year totaled 521 million pounds (export weight) valued at . .323 million dollars" Volume was 9 percent greater and value was 29 percent higher than in 19500

~ a farm-sales weight basis, the tobacco exported in 1951 was equal to approximately 575 million pounds--the equivalent of a little more than one­fourth.of .the total production for last year.c In 1951, flue~cured tobacco acc.ounted for nearly five-sixths of total tobacco exports~

·The export demand for 1952 crop·tobacco is not likely to be as strong as last season. Britainis takings probably .wtll be smaller than origirtally planned because of the decline in her gold.and dollar reserves resulting to a considerable ~xtent from the fact that-prices of-her imports were.up considerably more than the prices of her exportse Other countries in the sterling pool will also seek to restrict dollar imports. On the other hand, in the past year a notable improvement has occurred in the economic position of some other countries usually importing United States tobaccos Also; United States funds spent in Europe for military and economic assistance will help in reducing foreign exchange shortages in the coming year~

In 1951 the output of smoking tobac9o--a sizable Burley outlet--was a little over, 101 million pounds, 6 percent less than in 1950 and the smallest in 50 yearso The 1951 output of chewi~g tobacco was about 86 1/2 million pounds and of snuffJ near 39 1/2 million poundso B~th were

·-- quite close to 1950 levels~> Chewing tobacco is the major outlet for dark air-cured tobacco and it also takes some Burley and cigar birider tobacco~ Snuff is the main domestic use for fire~cured types? The 1951 exports of fire-cured were about 13 percent larger than in 1950--all of the increase being in the Kentucky-Tennessee typeso The dark air-cured tobacco exports increased sharply from 1950 to 1951~

.For the 1951~52 marketing year, supplies of fire-cured and dark air­cured tobacco are a little lower than those for 1950-Sl~ The 1952 acreage allotments will be approximately the same as in 1951 except for Virginia sun-cured (type 37), which will be about one-tenth larger than in 1950Q The prices received for the 1951 crops of fire-cured and dark air-cured were well above those of last season when the general averages, particularly in Kentucky-TennesseeJ were unusually low because of the poor quality crop~ resnlting from adverse weather conditionso

Cigar consumption in this country in 1951, at about 5,735 million, was 3 1/2 percent higher than in 1950~ .There are indications that a sig­nificant part of the increase was in cigarilloso Some further increase in cigar consumption may occur in 1952o

The 1951 production of domestic cigar filler was 6 percent below 1950, but the larger carry-over raised total supplies for 1951-52 to the highest level since 1942-43~ The 1951-52 supply of all binder types com­bined is down 4 1/2 percent from. the 195.0-51 levelo The 1951 production of the binder types was substantially lower than in 1950 but carry~over was moderately largerc

Page 5: CIGARETTE OUTPUT AND TOBACCO EXPORTS - …usda.mannlib.cornell.edu/usda/ers/TBS/1950s/1952/TBS-02-09-1952.pdf · cigarette output and tobacco exports bil.cigs. 40 20 mil.lbs. exports

TS-59 - 5 ·-The filler types 42-44 and the binder types 51-55 were grown under

acr~age allotments.in 1951, but quotas and acreage allotments:will not be in.effect on an,y continental-cigar types in 1952. In accordance with the law, the prices for the 1952 crops of cigar tobacco (exeept Puerto Rican type 49) .will not be supported. by the Government. ·

TOBACCO-PRODUCTS

Cigarettes .

The 195i cigare.tte output in this country at 419 billion was the· largest on record. The 27 billion increase from 1950 has been exceeded only by the year-to-year ~hanges during the war period, 1940 to 1~44e The biggest ye~ly increase took place from 1941 to 1942 when total cigarette output jumpe.d ,ne,ar;ty 40 billion ·to 258 billion.

In l951 ~he t,otal; .consumption of cigarettes in the ·United States (including territories and possessions) and by overseas forces was about 401 billion and exports accounted for about 17 billion. (See table ~) The relatively.small quantity by which output exceeded the total of consumption plus exports is considered a part of the manufacturers' year­end inv~ntorles. The .19$1 c·onsumption· of cigarettes- in this country and its territories and possessions was approximately 381 billion compared with 362 billion in 1950 and 354 billion in 1949q The rate of gain from 1950 to 1951 was 5 percent and from 1949 to 19501 2~3 percent. Cigarettes going mainly to United States farces overseas and for shipst stores totaled approximately.20 billion.in 1951, 15 billion in 1950, arid 12 billion in 1949o Ciga:rette consumpt.ion in this C01:ffitry in 1952 is expected to -remain high and probably will exceed that of 1951 0 Disposable income this year will continue at. a high level, and there. probably will be some. increase in the number of smokers • Sh:i pments to overseas forces seem likely to be at least as high as in 1951.

Table 1.-.pigarette ~xports from the United States, annual 1949~511 with percentages

average 1934-38,

- 1951 : . ' : Average ·countrY 1949 1/ 19So !/ 1951 1/ : as per-

s 19.34 .... 38 : - ... : centage' • : . of 1220 . . •

: Miil!on Miliion Million Million . · Percent Tangier & Fr • Mortocco: 12 1,223 1,394 1,8:$0 13.3 Venezuela : 39 679 1,oss 1,700 . 161 Philippines 1 Rep. of • ·2 5h4 7,422 1,526 1,~15 : 80 •

• I. 2~ Hong Kong . 983 1,14.3 . ' 1,_199 105 British Malaya • 3 90 4J4 ~~~54: 266 ..

: Belgi\Uil '6 764 950 878. 92 . 3 SW1 tte:rland .. • l-6 660 Sl3 65.3 166 Netherlands Antilles

. ' 1,~21 1,291 968 769 I 79

France : 307 11 295 739 . 251 Panama & Canal zone 389 618 616 658 107 other CO\llltries 154 S,S86 S,414 s,aos 107

Total all countries I 4"770 19~$47 14.,308 16_.820 118 !JPre!W~iifY! , - -Bureau of Agri~Ul~~~ ~co~QM!c~, Compiled from publications and records of the United ~~ates Department ot Commerce.

Page 6: CIGARETTE OUTPUT AND TOBACCO EXPORTS - …usda.mannlib.cornell.edu/usda/ers/TBS/1950s/1952/TBS-02-09-1952.pdf · cigarette output and tobacco exports bil.cigs. 40 20 mil.lbs. exports

FEBRUARY 1952 - 6 -

, ) _· .. 'ci~~~t t~, prl~e:~ :~ere, adva11c¥ld on. Nove-mber 1·; 1"95.~'- t~ ·:-~e:rf-ect the increase fro.I)l 7 to 8 .,cents ~n the ~t.e of F~d~ral exq'is~ tax per·.pa:c-]:c(j The B~~au of Labor s~atisti~s ,av:e:rag~ .. reta~l price in lrtrlge .o~t~e~ in __ ·-- · December 1951 was 21'1/2 c~nt~ p~~·paq~ of 20~~~ pe~cent 1 hig~~r· than in June 1950,) Since Jtme 1950.9 ·at'least 'six ·states increased their existing tax rates and lr.Tyoming became the forty .. ,first State to le·vy a tax on ciga"' rettesc Several cities in taxing. and.non~taxing States also tax cigarettes~ Federal and State tax collect,ions on cigarettes in 1951 are estimated at approximately 1,,8 billion dollars and will be even larger in 1952 -, (See table 15 for Federal collections on tobacco products in 1951 and earlier yearso) .... 1 ' ~ • ' 1 I , • ' ' J , '

. ' _After the o~tbr.~.ak of .t}J.~ Korea,n war whep rQ.ahy: Pti.ces. were risl.ng$ the .-l;,eadj,ng manufacturers raised cigarette prices .(eici~~ing_ tax) l?Y . 6 percent" Manufacturers include . the Federal excise tax· in ;their list · price and the percentage rise' computed on th:i.s bas.is was ·a.bout 3 percento Cigarettes and other.tohapco products have.been under pripe, ceilings since early 1951~ . - . · .. · . . · · . . :

' • • .~ • • ~ : ~ t " ~- • • • - . ·In the-latter half. of.l951, a signifi9&1t n~ber_of ~ax-paid cig~­

re.ttes. went intO. Cana~an Therefore~ the tax~·paid re~o.val.s in the United States. in. that period may overstate. United States. consumpt:;i.on3 . although to

, a. rel8,t;Lvely. small extent,_, . · ·'· ' · · ' . . '

Cigars .. ,

: . . cig~ ~on~~mP,t.io~ in l951 as indicated by ta.X~P4.:t.d. wf.t,hd~a~a~s; totaled ~,?35 ~llion comp?:I'ed with 5~538 million in. 1950 ·an~ $,58'7' mil.:. lion in l:949o . Tax-free remov'als. most of which we.nt' to United State's pers~mnel_ overseas, were. approxi~ately 80 million i!l ,1951 CbiD:P~red wl. th . 47 million in ;L950o . , :' · . · ' .. !,; ....

The major part of the gain i~ cigar consumptioh~fr~m 1950 to:1951 occur..red ~n the _4, "Go 6 -~nt pi;i~e -}?r.acke:t wh-ic.h incJ:ude§ :l:ihe .c.igarillos~­smaller c1.gars that ge-ne--raJ)_,.y, ,sell f~r- .5. _c.~~~ ·~~9h.o Those in the 4 to 6 cent bracket rose 8 percent from a year earlier and comprised 36 per­cent'.:;of-'the 'total~· :"Th:e"vol'um€f in ·the -8".tO 15 -c·ent- price· bracketr·which· inc-lu.de.s. aevercyl,_ ~eqding, ~<;>;P,ular _br,_apd_s,. ~howe,d .oi?Iy a 1 percent gai~ from 1950. ·to-l951;. · T'his gr-oup ·was .44 ~:pe'r'Cent of --~h~ tqtal Q Dur,.mg;:_.t:he fust hal:( of ·:1951~ consumption of 6 to 15 cent cigars was 6 percent higher than ln·''tne·.:-r.~s·t;_; )lalfi.-'q~ ~:1:950 (th~ ·_period prinr· io-·the ·1torean·-war·) -.;· .. · · Howeyer;· in·:-q~eLTast h~_l.f""d.f 1951·.~- tax~paf~ 'W±t~awals of this group wer~ ~'l'),early 4:.percent:!J,~sa than .y :i;n ·the last 'half of'T9.50g:· Serls1impti<nF .. of liigher-pf.:i,ced ciga~$~-'{selling .a,t, over 15 .c.ents: ea9h) inc_rease~·:·9~1;1~1"~ cent:·~~rom l~qeto 195l''.afld repre~~l'lted 5 l,t?·,:~erc~nt taf•!f:dt·al''f.~·~P.af~;1·, wi t.f.l.d:t:awals ;:¥} •tne latter ·year 0 ·.The 1951 :tmports. of cigars froritr:Cub~co·-r (larg~ly re-e~llng fo~: triore than 20 cents each) totaled netti<l:f'l3·-:rli:1iion-·· 17 ~~rcent *~~e than ~~:~1950, d:t~ar imports from~ the Philippines; .w~r.e~ · about ·1 1/4: 1!1?:-llion-·-a · t'elative:ly: ·sharp ria~ fr.om: 1950 but stii1}. :.t's.F .. :-.: :" lower than iii.< prewar years 0 •• .~·,::~.' :• ·. · ·: ':r~~ ~>·:-. :·.· · ··

·~~ \·~~y : -~ r: ,· .. ,r .. ~ . . .

·,- i Total~:oonsumptlli~rt of cigars in 1952·. il;? expected:•tO slQ.ow· a·,little. gain over 1&5lt ~ince !lll!ri~~er itl¢i?W~S probgl.~:j:.y will reach;~r.l:t~gfl,e;- ~~:v.,Uo H~w:rver 9 th:LE:! .. ~X no~;.~~fL an ifl~l!l~~e in t-r~ ( a,uant~~y 't Ci>~ ... ~9b.~~p,o: u~e:;~ by CJ.:gar- --manttf·acturers-··:tf .. eJ.g-ari-Hes-· ·S hou;Ld .. ac~t. J;or,, ..an. . ...;i~~~~f~ ... pr.o::-r.oo~.~~~?ni),~f. ~~~-:)~~~+<},:.-. ·

Page 7: CIGARETTE OUTPUT AND TOBACCO EXPORTS - …usda.mannlib.cornell.edu/usda/ers/TBS/1950s/1952/TBS-02-09-1952.pdf · cigarette output and tobacco exports bil.cigs. 40 20 mil.lbs. exports

TS-59 - 7-

The Bureau of Labor Statistics wholesale price index for popular brands of cigars in December 1951 was 3Q8 percent higher than in June 1950, The BLS retail price average for cigars sold in large cities went up only 2 ol percent between June 1950 and Dece1nber 195lo

. ,.

Smoking Tobacco

The manufacture of smoking tobacco in 1951 declined from 108 million in 1950 to about 101 million in 1951, and was the lowest in the past half centur,v. The 1951 tax-paid consumption amounted to approximately 97 million pounds and the remaining 4 million were mainly tax-free removals for exports and over~eas consumption by United States forces~· After a sharp drop from 1945 to 1946, annual production was quite stable through 19$0.

Smoking tobacco is used in pipes and "roll your own11 cigarettes., In most postwar years, about 90 percent of the cigarette papers have been _tax-free and the other 10 percent (books or sets containing more than 25 papers) were tax-paido Data on tax-free papers in 1951 are not yet available but revenue collections on cigarette papers subject to tax indi­cate a 3 percent decrease frrym 1950 to 1951~

The Revenue Act of 1951 reduced the Federal excise on smoking tobacco from 18 to 10 cents per pound, effective November 1, 1951. The Bureau of tabor Statistics wholesale price index in Decenber 1951 was the same as for each month since January of last year and wc.s less than 3 percent higher than the pre-Korean level 0 The December 1951 BLS retail price average for smoking tobacco in large cities was slightly lower than in September 1951 and a little over 2 percent above the June 1950 average~

Exports of bulk smoking tobacco totaled nearly lo9 million pounds in 1951--about 30 percent higher than in 1950~ Leading importing countries were Bolivia, Haiti, Dominican Republic, the Philippine Republic9 Spainj and Argentina. Exports of packaged smoking tobacco totaled 68o,ooo pounds in ~951--21 percent more than in 1950~ Major destinations were Canada and Australia9

Period

Table 2o- Ou.tput of manufactured tobacco in the United States for specified periods

!Urf eau of Agricultural Eoonomicso Compiled from reports of the Bureau a Internal R.evenueo ·

Page 8: CIGARETTE OUTPUT AND TOBACCO EXPORTS - …usda.mannlib.cornell.edu/usda/ers/TBS/1950s/1952/TBS-02-09-1952.pdf · cigarette output and tobacco exports bil.cigs. 40 20 mil.lbs. exports

FEBRUARY 1952 " "'I). ~~ c 1

Chewin~ Toba~

The 1951 output of the four groups of chewing tobacco products at 86"4 million pounds was 2 percent less than in 1950 ·and. a record low-;:, Tax ... paid consumption in 1951 totaled over 84 million pounds--almost 2 million lower "(,han in 1950 0 Tax-free removals, most of which go for exports$ accounted for a little less than 2 million pounds., The 1951 -l;,~ix-free removals of plug and scrap chewing were larger than in 1950 while twist was lesso

The distr~bution of the chewing tob~c~o manufacture ih 1951 ·was as follows: plug, 46Q2· percent-; scrap, 45e3 percent; twist,. 5~3 percent; and fine-cut, 3.2 percent.~ The manufacture of plug., scrap, and fine-cut were relatively near their 1950 tot.als but twist declined about 16 percent0

Chewing tobacco is expected to hold even in 1952o There is some possibility of a small increase if more workers· should use chewing tobacco as a substitute fo~ smoking in defense or other ~ndustries w.here there is danger of fire.or explosion~ ·

-The Revenue Act of 1951 reduced the excise tax on chewing tobacco

from 18 to 10 cents per pound, effective November 1, 195'lr. . The Federal excise is levied at the manufacturer level a..'1d l'ist. prices .. which include tax, have remained about the same~ Through late 1951:., th~·.B:S mop~hly wholesale price index for chewing tobacco had been oonstant f9r over 5 yearsn

The 1951 exports of chewing tobacco at nearly 1·~4 miliio~ pounds were 10 percent less than in 1950 0 The t-w·o most important foreign destinations were the Philippine Republic and .A'li.straliao

Snuff

The 1951 output of snuff was 39 1/2 million pounds--a 1tttle lower them in 1950.:_, Following the 9 percent drop from the 1945' peak of 43()6 mil­lion p01Inds, am1ual snuff consumption has stayed within 3 1/2 percent of 40 .:nillion_pounds~ Snuff is mostly consumed in the southeast and sout.h central sections of the country ?.nd in the lumbering a.:ceas of the northwest~

·The Revenue ·Act of 1951 reduced the e:;ccdse tax from 18 to 10 cents per' p·o1111d.1 effective November 1, 1951., The Bu:reau .of )"abor Statistics wholesale price· index for dry, sweet snuff in D,ecember 1951 was nearly 9 percent higher th.:m in June 19500 Most manufacturers ;r-aised .their prices in December 1950 and retail prices; a.lso; were generally increasedc-

' '

, . EXPORTS OF UN!-11-lNUFACTURED TOBACCO FROM THJ{ UNITED STATES ,J}

The export demarlq for ·iihe 1.952 crop tobacco is n;·-c, likely to be as strong as last· season" ' The British taklngs, and perhap~ those of som~ o"!-,her countries, prob'ably will. be smallero The British Government has announceLi. a cut in :tobacco imports; and the sterling area a.s a whole. is expected to seek to restrict imports from tne dollar'countries in order to'bring its trade position ihto bet;ter balancet~ In mid-1951 3 gold and dollar rE::serves

I/ Quantrrres o.m-ci.CCO-in this section are stated in ternis'.of ·export ' . ' '

weight~ which is less than the equivalent farm-sales weight~

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TS-59 - 9 -

of the sterling area at 3,867 million dollars were· at· a· postwar peak but -... ·by the end of 1951, they had dro.Jped to 2,3.35 million doll'ars~ Contribut­

ing to this· drain-were (a) the much heavier imports than the-relatively 1q~ ~~yel.of 19501 (b) the less favorable terms of trade (prices of 13ri~~.i.n t .s imp·orts ·~ere ·up morl? than prices of .. her exports), · and (c) the

._ payment of interest aVd. principal on United Stat~s and Canadian loans • .· Price~ of-raw materials purchased in sterling areas, such as wool, rubber, ~- and:-tin, '.llave·deelined quite sharply ~ince the._spring of 1951., Britain Wil~ _attemP,~ to-further expand her eiports'to earn 'dollars in 1952, but this may· 'be ·impeded by the Bri:tish defense p:r'ogram., 1\faterials that could be Teadily .e~ported will be r~quired for defense purposes., In other cciiintries o-f Europe, also, the military program ·is expected to receive·· much greater emphasis in the year ahead.

(. ~

. Exports of unmanufactur~d tobacco· from the: United State's ·in 195i totaled $21 million pounds val~ed- at .323 ~llion dollars. The ·volume·was 9~·percent-. greater· and its' aggr~gate value, 29 percent higher than in · 1950. Although the 1951 ·velum~ of tobacco exports has :been exceeded _ se~eral times in'~he past; the value was ~xceeded.onlyby·the 1946 total of .352 million dollars. Tobacco shipment~ in 1951 contained higher-priced to~acco than in 1950 and also ~ larger sh~re went to foreign outlets· that us~ally take higher-priced grades. Prices of numerous g~ades in the various kinds of tobacco have shown significant a~vances in the last t~o or,.three marketing- seasons. The 1'951 aver'age value _per pound for exports of all ~YP.~~ . com.b.ined was n-ear 62 cents com pared with 52 cents in ·1950 o

- This is the .:high~st average value 'per pound on record:.-the previous high .wa.S·.53 ·1/2 c-ents ·for 1947 exportso

Flue-cured tobacco composed 83 percent of the total unmanufactured tobacco exports al)d the Kentucky;-T_ennessee .fire-cured and Burley 'ranked second and.third, ·accounting for aoout 6 and 5 percent, :respectively~ Flue­cured tobacco exports in 1950 wer~·so percent of the total and the prewar aver:~ge is· .74 percent. In ·1951, 5I percent of the .flue-cured went to the United Kingdom whil-e in 1950-, only 34 perc~nt went .there~ In 1934..:.38 Britain go~ 64 pereent of the total· flue-cured exports from this country. . ~

' '

The.United States fo~eign_ aid progr~1 is now. being directed mainly toward military preparedness in ~he various.countries concerned.- Some econ9mic aid also will be given but' ·on a much smaller scale than under the Economic: Cooperation Pdministration. The Congress appropriated 7.3 billion.d6llars ·for assistance to frien4ly foreign nations. Of this, 4.,8 .billion dollars.•are for ·military and 1 billion for· ec.onomic aid te Europe. The remainder 1.5 billion .dollars are for other parts of the worl~_.. That part of· tbese f'I.Ulds wh:lch is us_ed in Europe to proauce · · · mili:tary equipment ~~d expa.J!tl cap~cfty will 7-ssist ip reducing f-orefgn exchange shortages in that area •. In the pas~ year,.notable amprovements have- occurrep:in the· economic position of some countries usually. importing sign~ficant quan~i:t!-j_es: of United States tobacco. - rJith adequate supplies of ·united Sta-tes tobaccG now, available and in prospect and w?-th pr;i.c.~s , . stabilized_, these colintries may be expe-cted to buy considerable quanti ties in"l952·.- ..

Page 10: CIGARETTE OUTPUT AND TOBACCO EXPORTS - …usda.mannlib.cornell.edu/usda/ers/TBS/1950s/1952/TBS-02-09-1952.pdf · cigarette output and tobacco exports bil.cigs. 40 20 mil.lbs. exports

FEBRUARY 1952 - 10 -Table 3o- United States exports of unmanufactured tobacco, to principal

importing countries, by types, for specified periods _________ (Declared weight)

: ___ --:iU:Ly-December __ Country

and ~ype

. . :Average: :1934-38:

1950 : 1951 : : : .: 1951 as 1/ : l/ =Average: 1950 : 1951 :percent­- : - :1934 ... 38: 1/ : 1/ : age of . .

: - : - :__!220 :I1illion Million Million:Million Million Million· -

pounds pounds pounds: pounds. pounds pounds Percent

Flue-cured Burley Maryland va. fire-cured Ky. & Tenn~ " One Sucker Green River Black Fat, etcQ Cigar Perique Stems, trimmings,:

and scrap

Total

Country of destination

324.9 llo6 5.,5 9.7

53.7 ,.7

3e0 9~0 -le3

ol

17.8

38.3.9 .37o6 6a7 5.-8

24.0 2.0 1.2 .3.6 7o3

(11

432$7 : 25<)2 8.o 4.5

29o2 3~6 1~9 4~9 6.9 .1

4.0

216o6 5.5 2.2 4.7

19.4 .5 .9

4o6 o8 3/

9S

260.0 1"9o9 3~1 3.1

12c;2 1.0 .a

2.1 4ol

.1

.315.6 11o9

.3.1 2.6 9.5 2.4 .3

3o0 3.9

".1

United Kingdom 213,.9 133.1 222.5 159.9 128.8 201.1 France 21.0 8.5 10.0 1.4 4.2 2.4 Belgium 15o5 27.7 29.6 8.4 15.6 17.7 Netherlands 15.6 32.2 24.3 8.3 13.6 8.2 Germany 12.6 81.8 47.7 6.7 52.3 25.2 Portugal 4.8 7.5 6.0 2.3 2.7 2.7 Denmark 4.6 14~8 9.1 2.9 7.4 5.4 Ireland 7.4 17.6 17~6 4.8 12.8 llo8 Switzerland 3.8 14.4 12.4 2.0 8.5 5.4 Norw~ 4.7 7.7 6.6 2.9 4.7 3.9 Sweden 7.2 13.7 15.0 5.1 10.4 10.5 Italy 1.1 2.6 2.2 .6 .3 2/ China 48e2 o3 oO 22o9 .2 :o Australia 18.4 18.1 20.3 8.8 10.6 12.2 India-Pakistan 2.6 5o5 6.1 : 1.5 .3.3 2.2 New Zealand 2.5 6.5 7ol : 1.5 3.2 4.0 Philippine Rep. 1.2 27.1 9.5 e6 1.9 5.8. Other countries 52.2 58.5 75.0 : 24.1 ___ ~30~ 36oO

Total · : 437.3 477.6 521.0 264.7 310.8 354.5

121 60

100 84 78

240 38

'14.3 95

100

48

156 57

113 60 48

100 73 92 64 83

101

115 '67 125 305 119

114 __ : : _________ _ !7 Preliminary. ~/ Less than 5o,ooo pounds.

Bureau of Agricultural Economics. Compiled from publications and records of the United States Department of Commerce.

Page 11: CIGARETTE OUTPUT AND TOBACCO EXPORTS - …usda.mannlib.cornell.edu/usda/ers/TBS/1950s/1952/TBS-02-09-1952.pdf · cigarette output and tobacco exports bil.cigs. 40 20 mil.lbs. exports

TS-59 , - 11 -Table!:;- Uni;ticP&ti'ritee exports or utunanuf'lcture<J tobacco, by types; to specified countries, average 1931!-)a, annt;aJ. 191!9-SJ..!!

~' ·• ; :· '' . ;,.•'; • (lJBclared wight) C~:ey I Flue• I •. ,: : Fire-cured : Orle : <k'een : Black :, Cigar : Stems, ; Tot~

·anB 1 cured 1 Borl:ey- fMa:ey1and•vi 1nia:K9'ltuci<;Y-: Suckel' ~ River .'· :Fat ' leaf :tJ'ilmlliDgs,: 2' yeu " : . . . 1 : rg :Tennessee; : . • : : and scrap : ::I

1 :m..u.J.on Mtlilon M111ion }i,lllion Million Milllon· M£11ion M111ion MOhon Million Million • 1 pounds' p01BJdB • ~ pounds pounds ~ pounds . pounds pounds pounds pounds . '· ~ --q:r '-y -r.o· -z;s- - }[ ~ -v p;r --n:r '"m-:9

, '163.8 .a· o:J. .7 1',2 • . o,o .'6 o.o .1 .o 167,3 I 1)0.$ ,2 ' ,0 .$ 1,1 ,1 ,6 ,0 3/ 21 133,1 : . 219.7' .3 .o .6 1.4 .o s .o y .o 222.$

France· . AVo 1934-38

. '1949'. 1950 1951

Belgium Av, 1934-38

19h9 1950 19Sl

Nethsrlantlll Av. 1931L-38·

19119' . " i950 .

. . . ". l9Sl Gel'lllllll;Y, . .

AVo 1-934-38 1949 1950 l~

Portllj!al , . Av. 19:34"'3a

1949 -1950 1951

Ireland .A,V. •• l934":"38

1949 1950 19Sl

SWitzerland Av. 1934-38

1949 1950 19Sl

NOnr~~T Av. 1934-3a

1949 1950 l9Sl'

SVIIden Av, 1934-38

1949 1950 ·• 1951

Cbina . • '• ,. Av, 1934-38

1949 1950 19Sl

A11Stralia .Av,, 1934-38 . 19li9

19$0 19Sl

. :.:

• I • I

I ·: -,:

• I

India and Pakistan · ~ Avo 1934-38

1949 1950 19Sl

New Zealand A.v. 1934-38

1949 19.$0

; r

' I

19Sl r

3.8 ll.l 19.2 21.6

1.4 24.6 23 .• 4 16.1f

h.l'-.58.1 64.fl J~.o

.7 :M 1.& 1.4

2.2 8.1

1'().6. 6.4

6.2 24.$ 17.1 16.9

.1 3.1 5.5 4.6

1.9 4.4 3.6 ).a 2.7 1.6 6.3

'llo9

36o6 1.3

.1

.o 17.5 l.9.3 17.6 20,1

2,6 7.2 5.5 6.1

·; Tol;aJ. above countries 1

Av. 1934-38 · : 296o4 ... - . ·1.949 'l ·337o7

19$0 315o1 ·1951 375o5

Total. all countries :

i o2

If•• .o. :4 .6

3.1 4.2 5.0 2.$

. l•l' 2.4 3S io3

s 10,9 .. 11.6 s.h

oB 1,6 1JI 1.4

~· "3/ ;o

.1

.5

.6

.7

·3 1.1 1.3

.9

s 1.3 2.9 1.$

.1

.o

.o

.o

.6

.2

.2

.1

1/_ .o .o .o

3/ -;o .o .o

10,0 2P•7 31.3 18o9

.6

.2 . 3/

1';0

.s

.2

.3

.2

i.o ,1 .4 .4

.2

.4 .• 4

.1

3/ "3/ -;o .o

• ,1

~ y 3/ ;o 3/ ;o

l.IL 5.6· 5.0 ILS

3/ "J/ "3/ -:o 3/ -:o .o .o

3/ :o .o .o

3/ ';() 3/ ';()

.o

.o oO .o

.o oO oO oO

4.a 6o6 6~2 6.2

3/ :o .o .o

.s

.3

.1

.1

.6

.3

·" ,1

1.2 .s .3 .2

.. 4 3/ ;o .1

.2

.1

.4 y

.2 3/ "3/ "}/

.1

.2

.3 s 1.8 1.3 2,0 1.6

1.0 )/ ';6 .o

3/ ";o, .o ,o

.3

.2.

.3 ,1 •

3/ "3/ "J/ y .3 .4 .2 .4

8.2 4.0 5.1 3.7

Ia.a .lOS

4.7 6.4

s.a 1.5 1.9 3.4

4.4 3.7 3.6 4.7

3.8 2.$ .a ·1

1.1 .4 .4

·" 1.0

.4 • 9 .4

.9 • 7

·" .7

1.9 1.1 2.7 2.0

.a ·3 .6 .2

3/ :o .o .o

3/ :o .o .o

3/ :o .o .o

3/ -;). .1 .1

43.3 24.1 19.7 ·20.9

,(j 3.0, .o .o

.4

.2

.4

.s

.o -· ·4 1/_ .2

Jf· ,J .1

.y .q . .o .o .o

3/ :o .• o . .o

3/ :o .o .o

~.· .o .o

3/ "J/ "J/ y .o .o .o .o

.o • o .o .o

.o

.o

.o

.o

.o

.o

.o

.o

.o

.o

.o

.o

.o .1.1

.o

.o

.6 ,J .3 .2

. 3/ :6 .o '}/

3/ ';2

..• o .o

.o

.o

.a

.o

'JI. :o .o .o

.1

.1

.o

.o

.o 3/ ~-=o .o

.o

.o

.o

.o

.o·

.o ·.o .o

.o

.o

.o

.o

.o

.o

.o

.o

2.7 2.9 .9 o7 · •

}/ .o .o .o

.1

.o

.o

.o

3/ .if

.o

.o

.~

.o • o .o

3/ :o 3/ :o.

·}/ .o .o .o

.o .• o

.o

.o

.2/ .o .o .o

21 .o .o ,o

.o

.o

.o

.o

.o .• o· . .o .o

3/ :o .o .o

1/_ .o .o .o

.o

.o

.o

.o

·3 .o .o .o

~ "J/ :o ~

,1 .6 .6 .8

.1 1.0 .5

. - .7

.3 14.0

3·7 . 3.1

.o ,1 .o y 3/

1:1

·" .7

.o

.o 3/ -;o

.o

.1

.1 y 3/ :J. 3/ y 3/ -;).

3/ ;':!.

.o 3/ :o .o

3/ "J/ "3/ "}/

.o 21 .o .o

3/ if .o }/

.o

.o

.o·

.o

.3 3/ ?{ 3/ :a .2 .$

2.2 .2 s .2

.o

.o

.o

.o

.2

.2

.6

.2

.o

.o

.o

.o

3/ ;o .1 .1

3/ -;). .2 .1

1.0 1.2 1.3 1.0

ll.$ 1.6

.2

.o

.o

.o

.o

.o

.o

.o

.o

.o

.o

.o

.o

.o

15.4 4.3 3.1 2.2

21,0 1S.a a.s

10.0

15.$ Ia.4 27.7 29.6

15.6 33.8 )2.2 24.3

12.6 a7.1 81.8 47.7

4.8 11.1 6.1 6.0

IL.6 ll.6 llr.a

9.1

7.4 25.3 17.6 17.6

3.a 10.7 14.4 12.1L

4.7 7.1L 7.7 6.6

7.2 5.8

13.7 15.0

4a.2 3.1

.3

.o

Ia.4 19.6 Ia,l 20.3

2,6 7.2 s.s 6.1

2.$ 6.2 6.5 7o1

3a2.a 430.4 366.0 IL34.3

AVo 1934-38 . r 32lro9 11~6 S.$ .9,7 . '$3.7 ,7 3o0 1.3 17.$ 437,;3 1949 .L 37Sio9 .3$o1 7,9 4,6 28.$ 6,6 3,2 22,4 $,1 49a,2 19$0 · :.!1/382,6 37.$ 6o1 5,7 24~0 2o0· 1,2 7o3 5,4 476,1 19Sl I h32o 7 25,2 8,0 h.$ 29,2 <Jj 3o6 5/ l-.9 6,9 4,0 $21,0

- Prel:l.minar,y, 2 lJBtaiied fi~ures mq not add to t-otals due to rounding. 3 Less than 0,000 pounds, An unusulii.J;r large quantity (2; million pounds) or flue-cured was exported to the Philipp:liies in 19$0. 51 other major C!estinations in 1951: One Sucker--1.2 million pounds each to Nigeria and Spain; Green R:!.ver--.9 million poiinds to Spain; Black Fat--1. 7 million pounds to Nigeria, 1,3 to French West Africa, and 1,2 to Gold Coast. BUl"Bau or Agricultural Econanics, Compiled from publications and records of the united States lJBpartm.ent of Commerce,

Page 12: CIGARETTE OUTPUT AND TOBACCO EXPORTS - …usda.mannlib.cornell.edu/usda/ers/TBS/1950s/1952/TBS-02-09-1952.pdf · cigarette output and tobacco exports bil.cigs. 40 20 mil.lbs. exports

FEBRUARY 1952 - 12 -From the countries of western Europe and in the Pacific area, the

United States imports steel mill products, coal tar products, industrial chemicals, fertilizers, industrial and uncut diamonds, industrial machinery, wool manufactures, beverages, paper base stocks, clocks and watches, tin, ~nthetic fibers, unmanufactured wool, and.rubber; and there are numerous others of less importance which, when combined, add to a significant total. If these imports are maintained or expanded, it will aid these countries to get the dollar exchange necessary to buy commodities produced in this country. United States tobacco is preferred by consumers in ma~ countries of the world.

British Tobacco Situation

The 1951 consumption cf tobacco in the United Kingdom is estimated at 221 million pounds (dry weight) compared with ~14 million in 1950. The 1951 figure is 16 percent greater than in 1938 (the last full year prior to lrforld lJ·Iar II) but 12 percent lo\ver than the record of 1946. Prior to \r.Torld 1N'ar II, 23 percent of the tobacco conswned in Britain was of Common­wealth origin. Following the war, this percentage rose to 38 percent by 1950 and in 1951, was close to 41 percent. The entire increase in tnbacco consumption from 1950 to 1951 is attributable to the larger use of Common­wealth tobacco since British home consumption of non~commonwealth tobacco was indicated to be slightly lower than in 1950. United States tobacco accounts for the preponderant share of non-Commonwealth tobacco. Although Britain will cut her tobacco imports from the United States in 1952, an effort will be made to maintain supplies for consumers--mostly by rearrange­ment of stocks.

In addition to her own needs, Britain's total tobacco requirements include a substantial quantity to be manufactured for export. The 1951 exports of manufactured tobacco from Britain totaled 5lo4 million pounds compared with 43o5 million pounds in 19$0. The 1951 exports were the third highest on record, having been exceeded in 1946 and 1947o About 95 percent of the 1951 exports were cigarettes. The principal outlets 1r1ere Singapore, Malaya, Australia, Belgian Congo, Hong Kong, Germany, and Gold Coast, all of W1ich took larger quantities in 1951 than in 1950. Also in 1951, United Kingdom re-exported 7 million pounds of unmanufactured tobacco--considerably more than the 4o4 million in 1950.

On November 30, tobacco stocks in the United Kingdom totaled 491 mil­lion pounds, 15 percent above the 427 million a year earlier and the highest since the early months of lrJorld 'Har II. However, the ratit'> of November 1951 stocks to gross withdrawals in 1951 was about 1.7 compared with the average prewar ratio of 2.1.

Britain imported 355 million pounds of tobacco in calendar year 1951--49 million more than in 1950 and more than in any previous year except 1945 and 1946. The rise in her tobacco impo~ts from 1950 to 1951 was due to the substantial increase in leaf coming ;t•rom the United Statee. The larger ~1antity purchased from the United States was tt'> rebuild stocks. The 1951 tobacco imports from the United States at 212 million pounds were 47 percent greater than in 1950 and comprised three~fifths of Britain's total tobacco imports. British tobacco imports from Southern Rhodesia, India, Nyasalan~, and Turkey fell 181 16~ 71 and 70 percent, respectively,

Page 13: CIGARETTE OUTPUT AND TOBACCO EXPORTS - …usda.mannlib.cornell.edu/usda/ers/TBS/1950s/1952/TBS-02-09-1952.pdf · cigarette output and tobacco exports bil.cigs. 40 20 mil.lbs. exports

TS-59 - 13 .• - '

while those from Canada W!3nt up ,by 37 percent. (See table 5.) In 1952 British imports of tobacco from the United States probably will be reduced while those from Soui;.hern Rhod~.si~ are expected t~- be larger,. The anno~ced cut -in p~~hases.from-the United. States was ma~e necessary by the deteriorat~~n ~nth~ g~ld and 4oll~ position of Britain~ At the 1951 auctions in.SouthernRhodesia1 th~ ·U~ted Kingdom purcnas~~s took only 48 million pounds or 54 percent of the total; but in 1952, if report~d­plans are carried out, British purchasers would seek to buy 75 million pounds or in caee .o.f·.a 'short .crop, .as."·mnc·h a~ praoti-cabl-e0

- f ' , ~ •

The valu~· (exclusive of duty) 'or United States-t~bacco imported into the. United. Kingdom from July through Decj3'tllber averaged 58~6 pence per -pound compared with 52.2 pence per pound for flue-cured from Commonwealth countries_~· . The ayerag_e value per. pound of n-ue-cur~d .t:.rom the United States was only sl~h~ly ~tgher than,that.from Southern Rhode~ia~ but probably over one-third higher than that from India, and nearly one-eighth higher than that from Canada~ In _t,he- July-De-cember period, about 54 per ... cent·o~ the flue-curea·o~~ginating ~Commonwealth countries was from· ·· Southe:nr ·R;hodesia anp. apprbXiiilately"· J2 percept and 8, percent. c~e from· India, ancf Canada,-. respectively., ~actic'ally. all United st·ates and Canadi~:·.tt.\le-cured and around·85.· perce!!~ of. the .. Southern Rhodesian 'tJ..ue­cured ~a~ imported on an uns~emmed basis but nearly ~0 percent of the · Indian ·toba:cco came· in str~pped :{stem removed)', and ·thus cofitained more usabl~ topacco per· porindo ·

...

Table 5o•. United Kingdom~. Iinports of unmanufactured: tobacco by principal sources· for specified periods :

- ----:-,-• • Comrnomrealth countrJ.es - :- · Period : ':C,-ot~l :United :- :s·outhern: Nyasa- : C · -d : Total· :Turkey :Greece

;irrwo:rts; S·tates ; India :Rhooesia:. land : .ana a : l/ : : : --:,..Million Million Million M±lliori Million Nillion MiliTOn I1illion MilliOn

pounds pounds pounds ~unds_ pounds pounds · pounds pounds poimds Average: :

1925-29: 213~3 1930-341 211 .. 2 1935-39: 269 .. 2 1940-44: 240o8

1945 ' 368(18 1946 432o7 1947 295.6 1948 280._8. 1949 2/ . 301.1 -1950 2/ 1951 y

175<>7 165~8 200Q8 l68oO

309e8 365.8 20lo2 1q2.,4 154.,1

143.7 ?11.9

. 9.5 ·10o9 19o6

:.17o8

lOol 17o6 22c9

'22o8 38~3

48.1 40.4

'20.6: '23oo·' 23~o:

4Jo9' 46o5

10o6 12~4

_12o4 · ·13c3

·llo6 10o9 llo9 14.,1 17(;8

17.4 16s1

12.,1 9r.2

22o2 12o7

·13()0

15o8 21_,7

32~9· 42~8 63.,6' 6lo5

56oO 62o3 82<.1 97 .. 3

il9~0

146o4 13lo6

• - . Y Includes iliC'onunonwealth countri;;:--y Preliminary<> -

o7 -.,2 r-6

3c-3

2:~4 3.,1 .4

10~2 20 .. 0

Bu:eau of Agricultural Economics. Compiled from Annual Statement of Trade of the ~J.ted King~om~ ~925~~; _,and Acc.ounts Relating· ~-·Trad~ ~ NaV.J.gation, l94r-:5r.

.' . ·r - \

' •".

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FEBRUARY 1952 ~.14 ~--

U}TITED STJ\T-ES HV'ffi\TS OF FCREIGN GRCMN 1'0BACCO 3_./ ' .. ; . ' ' '

In 1951 tobacco imports for consumption totaled almo·st 105 million pounds valued at. 85 million dollars. compared with 90 million pounds valued at 76 million dollars during 195.0o Volume of tobacco imports ·in· 1951 exc~eded any previous.year~s total and the valus was exceeded only in 1946 and 194 7 e . . · ·. · · · ·

The major increase in tobacco.imports was in. cigarette leaf which accounted for about 78 percent of the totalo Turkey was by far the largest supplier.~ providing 65 p~rcent .of eigarette·leaf imports into :the United States"' Greece ranked se~ond:> accounting for 15':percent& Imports from

Table 6,.-- -U:nit~d s·tates imports for consumption cf unmanufactured ·tobacco, rrom principal supplying countries,. for specified periods

--- -- ----- --- (Declared weight) ------~~

Classificat~on and country

, .. of origin

,, . : : ' ·: .Average. ;1934-38;

• . __ July_ ... Decem~e:::..r-.,.. .: ; 19~ 1950 1951

~ · :Average: 1950· : 1951 ~as per ... '!t1 Y ~1934~38: 1/ J./ :centage

-~ : : - - :of 1950 -·- -- ---- :Million Million-.Hillion:Million Million1 Millioo--

Total imports y Cigarette leaf

. , -Unstemmed Turkey Greece Syr.ia Bulgaria U.,S. SeRo So~ Rhodesia Yugoslavia

: pounds pou."lds pmmds: pou.'"'lds pounds p'oU.nds Percent ~-- -----·--- -

. .

· 44o4 18o2 18:.8

06 .,6 ,.1 3! :o

67,,6 48,.3 -9~.6

3o7 lo2 2~4 1.-3

<.3

: 104~ 7: 33-.5

: ·l31 ~31 221)6' 53o0:, 9.,7 1? oii; . : 9'o2

h:\10:. ~3 ,, 3.~0: >.3

4c7:· "1 c-:6: ..,0

. ~3: ,YJ . .

34-.0 24.,2 4a9 2o0

c-5 1()4

o6 vl

4.3~9. :26"3 6~6 2!'2 2.,7 Jo2 ~3 "2

124

.129 109 J.35 110 540

·229 . 50. 20Q.·

Cigar leaf (filler): lloJ 11.,2 7z~l

. 431

15o-5' 15.,2'

15(1)8: 15aO: 10,,9:

8o'2 8~1 5~9

).Ol. . 94 :93 :95

Cuba Sterrrrned Unstemmed

Scrap Cuba Philippines

Cigar wrapper Indonesia Cuba

Total from Cuba

11~3 3~9

5.,3' 5 .. 1

o2

1',1 :8 o3_..,_

20.7

4,.1: . . 6ol~ 6-GO;

,.0~

L:,2: .,9: ()3:

2lo3: . .

2.:;2

2~4 2"4 "0

125 +.25 ' 0'

~·-..

102

I/ Preliminary 4 2/ Includes tobacco :?ferns·' ~ot cut,, ground, or pUl vel:d."'iad, not shown separately~ 3/ Less than 50 9 000 pounds" 4! Formerly shown as originating in Netherla!i'ds Indies or Netherlands? -Bureau of Agricultural Economics<:. Compiled from publications and records of the United States Department of Commerce" 3/ J,mpnrt~s of t'ob~cco _i or consumption are 011: ~ declared~ weight basis.

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TS-59 - 15 ...

these two countries and 'also Russia, Syria, and ·g.ulgar·ia vrere l.uoger in 19~1 than in 1950a The reduction in import duty on cigarette leaf. from 20 cents to 15 cents per pound (based on the negotiations at Torquay in 19~0-5i) l?ecanie effective in .. October 1951. ·

The oth~r ~jor category of United ~tates tob~cco imports is cigar leaf--mostly filler. Cuba if the main supplier of both cigar filler and scrap tobacco. Imports of unstemmed filler from Cuba were a little larger but less stemmed filler was entered than in 1950o. Nearly Oc8 million pounds of cigar. ·filler came in from the Philippines in 1951. More Cuban scrap tobacco was imported in 1951 than in 1950. The total of all import classes combined coming from Cuba L"'lcreased about .3 percent from 1950 to 1951~ .,

The imports of cigar wrapper from Indonesia were the largest· for any year since the war except 1947., although still well below the _193~-:..38 average. · · , · · ..

19~1-Prices Average 52 ~-Per Pound

.,' Although prices for many medium and better grades in the 1951 market­ing seas~n·~xceeded those in 1950, the general average for auction sales at 52.2 cents per pound was 5 percent lowero This was due to the larger proportion of tobacco in the lower=priced grades than in the 1950 season, wherr·tllle.'erop was of generally high quality~· The strong domestic and· foreign·demand held the·season average above the 1951 support level of 50.7 cents which was nearly 13 percent above the 1950 supportc In the 1951 season,.growers placed about 142 million pounds, or a little less than 10 percent of. the crop, under loan c9mpared with about 78 million pounds or· 6 percent of the crop in the 1950 season~

Gross income to gro~1ers from their 1951 flue~cured crop is estimated at 749 million dollafs--9 percent more than in 1950o The 1951 crop was the largest ever produced and the increase in volume more than offset the small decline in average price--thus raising cash receipts above the previous record in 1950~

. In the Georgia-Florida Belt (t.ype 14), the Border Belt (type 13), and the Eastern North Carolina Belt (type 12), volume of marketings and value of sales exceeded those of any previous yearo For type 14 the average price was the third highest on record, and for types 13 and 12, the second highest price on recorde In the Middle Belt (type ll(b), the volume was the second largest for any year while the value of sales exceeded any previous year t s ~» In the Old Belt (typ~ ll(a), the volume was the third largest on record and the value exceeded that of any previous year except 1950. For each type~ ll(a) and ll(b), the average price was the third highest on recordo ·

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FEBRUARY 1952 - .16 -

Table .7 e- Average price:s for gross sale-s.-( includes resales) · by belt, 1947-51

-------- ··- ----·- ----- --------Crop : Old Belt :Middle Belt: Eastern: ~ Border · : Gao.:.,Fla 0

_.!_e_ar __ . ~typ_:_ ll(a) .::type_ ~(b) _!~~eci2 .~ .. t:;;~13 _t_w_Pe_:_4__ : : Cents pe:r Cent.s per Cents per Cents per Cents per · · : pound ~___:1__ pound ·- pound · pound

: .

1947 . 38o1 . 42o2 43o0 · 4lo9 . . i948 49~2 50~1 49o:3 50G5 1949' 45"5 47-.7 48~8 48G9 1950 53~4 56"2 56o5 55o4 1951-Y 50~.5 .5J.8 55oO 51tl8

... ----y Prelirninaryo

The proportions of tobacco in each belt that went under Government loan were about as follows: · Type 14, 10 percent; type 13, 11 percent; type 12.9 6 percent; type'll(b), 9 percent; and type ll(a), 15 1/2 percento

The 1952 crop of flue-cured will be supported at 90 percent of paritye By mid-1952, parity for flue-cured seems likely to be .about the

·-. same as or slightly higher than in mid-195lv If SO,g the 1952 support level will be near the 50fj 7 ce~t level for the. 1951 crapo

· Table 8~;.. Flue-cured tobacco, types 11-14: Domestic supplies, disap­pearance,· and season _average price, average 1934-38, annual 1939.,·51

(Farm-sales weight) -----:-: . ~ ~-t-oc~k-~ : :_ Disappearance Y --~ Average·

Year : Product~on: J 1 1 :Supply : a1 lDomestic :Exports :price per --- ~ u Y : __:_..:: ot ~ · __fj_ ~ 27 ....!_ pound

. : Million Million Million Million Million Million . pounds pounds pounds pounds _pounds pounds Cents

~

AVo 1934-38:

1939 1940 1941 1942 1943'

1944 1945 1946 1947 1948

1949 1950 2/ 1951 y

: .

.. . .. .

741

1,171 760 650 812

. 790

1,087 1,173 1,352· 1,317 1,090

1,115 1,257 1~434

845 lj586

946 1~4+0 1,593· 1$460 1~379

1,189 1,126 1$147 1)287' 1_,550

1,538 1,48> 1,557

2,117 2,170 2,243 2,272 ~,169

2,276 2,299 2,499 2,604 2,640

2,653 2,742 2,991

. 704

707 577 783 . 893 980

1.))150 1..9152 1,212 .1~054 1,9102

1.168 1~184

338

417 421 49i 604 625

696. 665 660 695 715

722 751

366

290 156 .

.291 289 355

454 487 552

•' 359 . 387

14c9 16o4 .28ol 38o4

:40o2

y Year beginning July lG> ~2] Subject-to-·revi'Sion() }/ Auctioomarket average<",

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- 17 ..

Supplies , .

The record crop of·l,434 1rlllion pounds in 19$1 plus a carry-over on last July 1 of 11557 million pounds provided a total supply of 2,991 mil­lion pounqs for 1951-$2•-9 percent above 19$0 ... $1. The 1951 crop exceeded the 19$0 crop_by 14 percent. Total flue-cured acreage harvested increased nearly 16 percent and for types 12-14, yields per acre were also higher~ However, in the Old and Middle Belts, type 11, yie1ds per acre were down 11 perc-ent·, and this brought the average yield for flue-cured a:s a: whole, 1 to 2 pe~cent below the 1950 average.

The 1952 marketing quota f~r flue-cured proclaimed last November results in 19$2 acreage allotments totaling 1,130,000 compared with · 1,119,000 in 195lo If harvested acreage in 1952 is. near the total allotted and yie+ds per acre approximate the recent $-year average (1947-51}, the 1952 production would be about 1,380 million pounds. If yields per acre equal the recent 3-year average (1949-51), production l·muld approach 11420 million pounds., Carry-ever next July_seems likely to be betueen 1,700 and 1,750 million pounds, and total supplies for 1952-53 may exceed 31100 million pounds. This level would be above that of any previous year, but the relationship to total dcrnestic use plus exports would not be greatly changed. The 1951-52 total supply is 2e4 times estlinated disappearance and the 1952-53 total supply m~ be about 2Q5 times prospective.disappe9l'ance.

The stocks of flue-cured tobacco remaining under Government loan on February 1 totaled 210 million pounds ( eq11ivalent farm-sales vreight) • About 67 percent of this vras 1951 crop tobacco; 24 percent, 1950 crop tobacco; and the' remaining 9 percent, 1948 and 1949 crop tobaccoo

Domestic -~ ~ Exports

Duririg the current marketing year (July 1951-June 1952); the domestic use of flue-cured is expected to top the 751 million pounds of 1950-51, In the first half of 1951-52, domestic cigarette manufacture--the most important outlet--vras running 6~percent ahead of that in the ·same period of a year earlierc Exports probably will exceed the 1950-51 total of 433 million pounds (farm-sales weight) by as much as 10 percent. If exports are that larges theywould exceed those of any previous year except 1946-47 when they reached 552 million pounds (farm-sales weight). The average declared value per pound of flue-cured exports in' July-December 1951 was 12 percent higher than in the same period a year earlier while the quantity vras 21 per­cent higher.

During July-December 1951, the United Kingdom (accounting for over three-fifths of the total flue-cured exports) took 56 percent more than in July-December 1950. The next ranking outlet vras Germany, but the quantity going there was less than one-half as large as that in July­December 1950o Belgium ranked third and got about two-fifths more than in the last half of 1950. In July-December 1951 compared with the sa:me months of 1950, a considerably smaller quantity of flue-cured was shipped to the Netherlands and a little less to Ir~and but substantial~ more went to Sweden. Other countrie~ getting greater quantities in the more recent period include Australia, Ne1t1 Zealand, Hong Kong, Finland1 Philippine Republic, Egypt1 Parkistan, Ceylon, Siam, Indonesia, and Taiwan.

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FEBRUARY 1952 "'18 <>=>

Among the countries tak::ing smaller quaT'ltities of flue-mu•ed in July"'' December 1951 than in July-December 1950 were NorwqyJ DenmarkJ Portugal, Switzerland_, France, Austria, India, and French Indochinao

Domestic demand for the 1952 crop is again likely to be strongo Also., exports are expected to be relatively large in 1952-53 but not as large as in the current yearo The British Government has announced a sub­stantial' cut in tobacco imports from the dollar areao If this occurs,. ·there will be a further cut than originally planned from the relatively high 1951~52 figure_which enabled purchases large enough to permit some build~up of stocks o{ Unitep States tobacco 0 - The dollar position of' ,some other co~nt:r:ies .u~ually t~king major quantities of tobacco from the United States deteriohl.~~~: ~~~th~;:.J.;as~rJfalf ~ 6~ J9~l-~ Jiut. ~ey,~~~:J. ~ o~pe:r;:, qt;>uptrt~s ~mP!'?Yed tp. · ·t: t · . - --- ~ d- - '- 'ti.).r. .. 'Al "'· 'f~M'' 'J,\'\±!- r~~..:.gtt·bif'-'t~~{iul1'4~gg 1 ·

~Cls.e.t"':CtM· ,_ tqh._.ei~~)::~S.Jt~tg~_,.g~~J_ .e.' rS~~~··~'lL ~~' ::..c: .l,c,-' • ~I:?al'·tt·gl)d. -ll..~l!J J..>lir.i:·~·.~- "'a i,;o rr ,."'r a es a~J are spen aoroau. Ior P, an .. expanSJ.vn"a uu. ~lJc:u,y stlpp.L~es - · will reduce foreign exch?-nge s.hortag.es0 ~

BURLEY, TYPE 31

Burley Price3 Average Above Any]!evious Season~s

Burley .auction markets began Novembe:- 27:; the_earliest._on reqord, and by early February, practically all of the 1951 crop had been so~d~ Auction prices averageu about 51 cents per pom1d--4 1/2 percent higher than the record aver~ge f~r the 1950 crape There was an improvement in the quality of offerings from several areas compared with the preyi.ous seasono Demand was fairly strong throughout most of the s·eason.9 ,~lthol?-gh easing . by late.January~ About 64 percent of the crop was sold before the . necemb~ 21 closings for the holidays~-coffipared with 57 percent in the 1950~51 seasonc The volume of pre-holiday sales was above that of any previous season"'

' The 1951 support price was 49~8· cents per pounda-4<1 cents higher .

than the support for the 1950 crop~ The support level was based on 90 per• cent of the Burley parity as of October lJ 1951~ the beginptng of the marketing yearo Growers placed approximately 97 million pounds--about 16 percent of deliveries ... -under Government loan" The quantity placed under loan from the smaller 1950 crop wa~ 4J..~ million pounds, 9 percent of tha·t. cr,opo

_,f:J~ , ,; ~ .. T.~e.· price) s_~pport ::~ev~f~~r ~:he 1~5:2_, ~rop :i~. e·ip~=~t;~d ·~~· ~e ,.:.~ppraxi:, · mately the· same as or' sl~ghtly h::Lgher than it 'Was for• th~ 1951 ·crop~ ThJ.s

will depand on the 'level of the parity index (prices paid, by farmers$ interest, taxes~ arid wage rates) next fallo The index is used to-calculate the parit-y price, and the support level will be 90 percen:t of the p~ity~,

Supplies Lal''ger Th\lri ~~f&O -

Total supplies of Burley for 1951-52 (based on October f stocks and estimated producers' marketings) approximate 19 .585 million pounds='"' 6 percent larger than in 1950-.513 The· 1951 harvested acreage was 12 per~ cent above that of 1950, and the'yields per acre averaged the second highest in history, The increase over the 1950 crop much more than offset

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- 19 -

the decline in carry-over from the previous year. The October 1, 195'11

stocks at 981 million pounds were 2 percent lower than the record carry­over on October 1, 1950o

The 1952 marketing quota for Burley, proclaimed in late November 1951, results in 1952 acreage allotments totaling 475,000 as compared with 472~000 in 1951. If about the same proportion of the total allotted acres is harvested as in 1951 and yields per acre are close to the 1947-51 average, total production this year will approximate 580 million pounds • Carry-over next October mg,y be as much as 110$0 million pounds; and total supplies for 1952-53, very probably will exceed 1,600 million pounds. such a supply would be above that for any previous year, but the supply­disappearance ratio would be little changed from that in l951-52Q Total supply in 1951-52 is 3o0 times prospective disappearance, while for each of ~he preceding two years 3 this ratio was near 2e9o

The stocks of Burley tobacco in Government loan stocks on February 1 totaled about 152 million pounds (equivalent farm-sales weight). About 64 percent of this was 1951 crop tobacco; 28 percent, 1950 crop tobacco; and the remaining 8 percent, from the 1948 and 1949 crops~

Table 9.- Burley tobacco, type 31: Domestic supplies, disappearance, and season average price, average 193h-38, annual 1939-51

(Farm-sales "t·reight) : : s Disappearancer/ : Average

:Production: Stocks :Supply :~ tal :Domestic :Exports ~price per Year : : Octo 1 : : o ~ 2/ : 2/ : pound - -Ydllion Million Iciillion !-Jillion :tclillion Hillion

pounds pounds pounds pounds pounds pounds Cents :

Av. 1934-38: 287 701 988 314 302 12 22o2

1939 395 684 1,079 317 305 12 17Q3 1940 377 762 1,139 341 335 6 16.2 1941 337 798 1,135 380 374 6 29o2 1942 344 755 1,099 413 407 6 41.8 1943 392 686 1,078 427 418 9 45.6

1944 591 651 1)242 483 474 9 44oO 1945 577 759 1,336 483 448 35 39.4 1946 614 853 1,467 526 476 50 39o7 1947 485 9L.l 1,426 524 496 28 48Q5 1948 603 902 1,505 531 489 42 46oO

1949 560 974 1,534 534 493 41 45'.2 1950 ~ 499 1_,000 1,499 518 488 30 49.0 1951 .J lf605 981 1,586 l±/ 5lo0

!/ Year beginning October 1. 2/ Subject to revision. ducerst sales. .!!/ Auction marKet average"

11 Estimated pro-

Domestic Use and Exports --During the marketing year ending September 301 19511 domestic use

of Burley was 488 million pounds--slightly less than in 1949-50, The major outlet for Burley is in cigarettes~ and their output during 1950-$1 was

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FEBRUARY 1952 ..,. 20 '<>

4 percent larger than in the preceding yearo However 1 smoking tobacco manu .. facture went down 3 1/2 percent from 1949-50 to 1950,~51 and chewing tobacco manufacture was 2 percent smaller 0 The 1951~52 domestic use of Burley is expected to be larger than i..l1 l950·e5l inasmuch as ciga'Y.'ette output. is likely to reach a new highQ

Exports of Burley during the 1950-51 marketing year t.otaled only 30 million pounds (farm~sales weight)~~a relatively sharp drop from the 41 million pounds in 1949~50 A little over one~fifth of the 1950~51

·Burley exports went to Germany.~ but German takings were only one=half as large as in 1949 ... 50 0 Portugal~ the next ranking outlet (about one.,..eighth of the total), got 25 percent less and Belgium_, in third place, got 58 per­

. cent less than in 1949.,.,50 o Also, sm.Uler shipments went to Netherh.nds ,?

Denrnark 9 Austria, the United Kingdom~ and Egyptt' Among the countries which took larger quantities in 1950-51 than in 1949-50 were Sweden, Nor1'1Tay, Switzerland$ France .9 Italy, Spain.9 Philippine Republic, Finland, and Me;.'"ico.,

During October-December 1951 (first quarter of the 1951,·62 market­ing year), exports of Burley totaled 8 million pounds (farm-sales weight) compared with 9 million pounds in the same period a year earllero Principal destinations in the recent period were Sweden, Germany, Belgium, Portug~l, and Norwayo

MARYLAND.? TYPE 32

Prices

~1aryland tobacco auction markets usually open before mid-May ·and the great bulk of the sales are from the crop produced in the preceding yearo Mainly 1950 crop tobacco went to auctions .from Ma:y 8 through August 17, 1951~ and prices averaged 47,8 cents per pound~-·-practically the same as in the preceding seasone The support level last season was 48.,6 cents per pound_, but the larger than usual propo:r.tion of lower quality tobacco pulled the general average price received ty growers a little lower than the support level~ About, 5 1/2 mill:i on pounds-·-nea:r·ly one­sixth of net auction sales---were placed under Government loan by growers o

In a referendum held in late 1950~ M~~land growers disapproved a marketing quota on their 1951 crop, and in accvrdance 1rrith the law; prices will not be supported when the 1951 crop goes to auction in the coming season.~ The quality of the 1951 crop is reportedly better than that sold last season-J However~ total supplies are relatively large (3 times average disappearance) and the prices received by grades are not expected to ave::-"l~f above last seasono The parity level for Maryland tobacco as ~f January 1952 was 59ol cents per poundo

A marketing quota on the 1952 crop of Maryland tobacco vtas disapproved in a referendum last December--anO,therefore, when the 1952 crop is n.a:rketed in the spring and summer of 1953, a Government price support p~ogram cannot be made available~ If quotas were in effect on Maryland tobacco; price support at 70 percent of parity would be manda~oryo

Supplies

The estimated 1951 crop of Maryland ·tobacco is 42"9 million pound~-·~ 7 percent larger than in 1950 and wa.s. previously exceeded only by the 19146 crop3 which topped 46 million pounds,, The 1951 h8.rvested acreage ·w-aoJ above

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TS-59 - 21 ...

that.of any previous yearo Average yields per acre in 1951 were up about ) perc~nt from ~ho~e in 1950e ·The Oc~ob~r 11 1951; carry-over at. 64.3 mil• tiori'pounds was 7 1/2 percent above.that· of a year ea~lier and the highest on record~ Progu~tion, plus carry-over, giyes a total 1951-52 supply' of· 107o2 million pounds compared with 99o8'million pounds for the prec~ding Y$3az:o . , , . . · • .. . '

·Even· with some moderate increase .in total. disappearance dyring october 1951-September 1952, carry-over next October 1 will show ~ further inc~e~se of 4 or 5 million pounds, and it seems likely that the total 1952 ... 53 supply (assuming an average 1952 crop) will be 'at a new peak.

,• . .

As of February 1, the Maryland tobacco remaining in Goverriment loan stocks was 8 million poundsG About b6 percent· of this was 1950 crop tobacco; 13 pe1•cent; 1949 crop~ and 21 percent; 1948 cropo ·

Table 10 11 - Maryland tobacc0, type 32: Domestic supplies, disappearance, and season average price, average 1934-38, annual 1939-51

(Farm-sales weight) -- ---: s-t-oc_k_s : ---:- Disappearance 1/ : Average rProduction: Oct 1 :Supply:-. al :Domestic:Exports:price per ... Year : : tJ : Tot : 2/ 2/ pound --.

Million pound~:~

ftV~. 19J4~J8.; 27G5':

1939 '.19,40 1941 1942. 1~43

1944 1945

. 1946 -1947 1948

1949 195'0 2/ 1951 :v

: .

32-~8 32.6 31,-2 28ol 20.8

38~2 18o4

. 46o2 37~8 35,o

41;2 4o.o 42.9

I

Million Million.¥iJlion Vdlljon pounds pounds pounds pounds

4lo-3.

41.4 47.7 5lo8 5~o8 49o5

45.2 52.2 40oJ

·.54 .. 5 56.0

54oO 59c8 64o3

68o8.

74.2 80!13 83o0 83o9 70e3

83o4 70;6 86.5 90c3 9lo0

95.2 . 99.8

107~2

26o5

261!5 28.5 27.2 34.4 25.1

31.2 30.3 34oO 34.3 37.0

35.4 35.5

21.1

22o-6 25o9 26.1 32.2 23 .• 8

28.8 24o2 28.3 27.0 27o7

28:o 27.1

Y Year 'beg'inning October lo 3/ Subject to revisiono

Domestic ~ ~ Exports

Million pounds

3r-9 2o6 1.1 2,2 lo3

2~4 6.1 5.7 7.3 9o3

7.4 8.4

Cents

21.1 33e0 30.1 56.5 45.e3

55.5 51.0 44.5 42.8 54.4

48.3 48.3

Domestic use of JIIaryland tobacco (largely in cigarettes) during the marketing year ending last September 30, totaled 27.0 million pounds--a drop of·'ab_out 1 million pounds from a year earlier. In contrast, cigarette manufacture increased 4 · pe~cent, comparing the ·same 2 periods •

. Exports dUring October 1950-september 1951 totaled about 8.4 ml2lion pounds (farm~sales weight), an increase of about 1 million pounds_~rom the preceding year,_ so that total disappearance in each of the last 2 years has been ap~~ximately equalc . · · ·

. ,,

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FEBRUARY 1952 )o ~ • / , ~ f

· ·, -E~cent for. 1948-49, exports in 1951-5,2 were 'the,lar~st for· any . marketing year since 1933'. Swi t~erlan~. accounted for almost three-fifths · of the to~a;L, even though taking ~bo1,1t. 7. percent less than in 1950-51.

France, the second ranking outlet, took over 4 1/2 times as much in 1950-51 as in 1949-50~ Shipments to French :vorocco more than doubled and those to Tunisia also increased. Also, Netherlands, Germany, and· Denmark got more; but less. went to. Belgium, the Philippine Republic, and Algeria;

;·and none went to the United Kingdom. ' '

. . In Qctober-December 1951 (first quarter of the 1951-52 mar~eting year), Haryland tobacco exports totaled 1. 7 million pounds (farm-sales <feight)--6 percent smaller than in October-December 1950. Shipments to

· Swit%erland ._and Germany were lower but a substantially larger quantity was shipped to Tunisia.

Record Prices for ' 1·9'1 Crop ·--

FIRE-CURED, TYPES 21-23

· Auctions for Virginia fire-cured (type 21) began in late November and for Kentucky-Tennessee fire-cured (.types 22 ... 23), on January 7.o The demand for the fire-cured types 22-23 has been generally favorable9 The sales season·for the Virginia-fire-cured has closed and prices averaged 39.2 cents per pound--about 3 cents more than the previous high received for the 1950 crop. For the season through late February, 'auction prices of type 22 (Eastern District--Kentucl~-Tennessee) averaged 41 cents per pound and for typ~ 23 (i,restern District--mostly Kentucky), nearly 35 cents per poundo These price averages· exceeded last season's averages by about

· 9 or 10 cents per pound and 1-rere higher than in any· previous season9 The · substantial improvement in the quality of the crop as a whole acco~ted for much of the price rise from a year ago. The 1950 crop of fire-cured in Kentuck~-Tennessee was one of the poorest ever produced due to par-ticularly adverse 't-reather' conditions. · '

The 1951 crop price support is 37 .4. cents per pound--3.1 cents higher than las~ season. The pri~e support for fire-cured· tobacco is computed at

. 75 percent of the Burley support level. Growers placed about 2Q6 million pounds of type 21, 3$9 million pounds of type 22, and .8 million pounds of

, type 23 under Government loan. These lo~n quantitil3s were about 19, 13, · and 7 1/2 percent', respec~ively, of total deliveries to market through

late February~ A year ago, 21 percent of type 21 (Virginia), 25 percent of type 22, arid ;1.6 percent of type '23 went under Governm(?nt lq~n·~·:'

Total Supply for 1951-52 --r0Wer Than for 19~0-'l - - - .....;,..;;;...,._,.;_

Total supply of fire~cured tobacco f~r 1951-52 at, 210 million pounds is 6 percent lowe~ than for 1.950-51 and the lowest since 1945-46. Carry­over on October 1; 1951, was 14 7 million pounds--a drop of 11 pe:rpent from a year earlier, The decline in stocks was mostly in type 23 and 'to a lesser ,extent in type 22, but stocks of type 21 were at a postwar peak. The 1951 crop of all fire-cured combined was a,bout 62 .l/2 million pounds--6 1/2 per­cent greater than the small 1950 production. Most of the increaS,e was in tJ'pe 22 • Although the 1951 harvested acreage of ·type 23 waS, 11 percent less than in 1950, the average yield per acre was well. above the relativelY low average of 1950 and the 1951 total outturn of this type inoreased by

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TS-59 .- 23 .:- o' ':'I

4,)'e~~ent~ 1 _Th~ .. l.9~ik .a~reag.e anq. production of. typ~. 2~·-held about. even WJ.,tb, 19.50. .. •:: ' .. ' . ! • ' ~. . . ..... .. .. . -.

. ·, · :Iri .th~ . .r:i;~~c;ll.ed·. tob~cco · r~£erepdlUn on De~~_mber 1 ~ 1951_, over 9~ per­can~ of. ~h,a ... grol!•er..s .Y.<;>ting. approved al continuation of maz:keting_ quotas for 3 1~~~ ~eg~~ing .wi~h t~e 1952 crop? .T.~~ ~9~2 acre~ge allotm~nt ~or types _21_,..23.. totals .$6,~00 acres and i~dividu~- £~~ acreage_ allot~~ts will re_ma~: B:b.~'l:lt. the S_fune as. ;in 195-1.c . If growers harvest the same proportion or t!,li~· Y,e.ar:.•:e total allot~ent as. in l:~Sl and yields per acre equal the average of r~~~n~.years (a~usted. for the.l950 1o~ of t.ype 23)~,.the.l~52 outturn would approximate 59 million poundso This~ together with probable ~~ry-ov~ .. of aroun!i l40 -million pounds -next October 1, wol;lld provide a to~~ supply o.f: nearly: 200 .mi~l~on. po1.mds for 1952-53--about 5 percent less tpan ~nth~ cuxrent.yearo· · . . .

. • .,, .. T·;tai .fir~-cur~d 'tob~cco und~r· Governmemt: lo~ -on ·Feb~uary. 1 t·otaled roughly .$'y -milil.ion pounds ··(equ;i.valent farm-sales weight) e About 12 ,percent of this was 1951 crop tobacc~, .19 pe~cent from_the 1950 crop, and p9.pev­cent from the crops of the 4 preceding years, 1946-49o

·. ·~·.:.-.~ ~--·· .. _r··. · ..... · .... !: -~· ...... · Table. 1~ ..... ;F-i:re-~~~0. t.obaeco, types ?1-24: :. p9me~t:i,c supplies, dis~ap~ : _pe~_an~e, and. ~eason ave;r-age pricC?, ~verag~ ;:1.934-38, annual 19:39~51 -

t .;= · (Farm.:sales weight) · - : : -= -- : Disappearance 1/ : A~v~er~a""':g':":'e-

Year :Production:~t~ck~ :supply :T t 1 :nomestic:Export"s:price per : : ~- .. ~ ... : : 0 a : 2/ : 2/ : f?Ound

-- Million !--1illion MIITion Hillion Million Iviillion-pounds pounds pounds pounds potmds pounds . Cents

: Av~ 1934-38: ll0o2

i939 . - .. . :·. ":' 9'9.4-:--· 19.46 . ' . 4 ... ~6,6~5 .. 1941 ;· .·.:: 69.-o 7 · · 1942:. =: .. 7i,s ·

:r1~4J.. .; . 64.9 .. ' ':.:. .

19h4. ,. :' . . .6~.1 1945 .: \ 58.3 1946 10~·9· 1947 85o8 1948 73.2

194.2

; 1?3.o5 131.8 l04c;9 143.4 162()6

.. . . . ~- t: : . ; . .., ........... . 1949· 1950·2/ 1951-"'l/. -

· : • 72o1 .: · . ·157o2' ,. ~- ·'58o 7 · · 164o 7

:. :. ;. · 62.o5: 147.2 · ~--~ .. · .. , ... . !/~"¥ear.:beg~~g octobe;r ;1, average. . . . . .. ~ .

' . . ' . Domestic us~;.ari.Q. ·Exports·· ........... ·~ ·-:---- :

304.4

235.6·· 248.1· 253 .• 6 256.1

_244.7

239o6.­·190ol ·· 21.3o8!. 229.2 235.8

229oJ . 22}o4: 209,7 ,.

123o0

94.0·, 64o2 69.0 7Po3

. 71.2·

.. ' . T~ & ,'

10~2

10.6 : 9.5 · ak~l-

17.1 ·23.4

.. ·' 24c5

· 3lo5 ·26·.o 29•5 3ls9

Total disappearance of fire-cured tobacco in: the year ·ending · · · · September 30, 1951, was a little over 76 million pounds--18 percent more than the preceding yearts record low. Domestic disappearance at 36.4 mil­lion pounds was ~p 3 percent. The 1950-51 manufacture of snuff, the major domestic outlet for fire-cured tobacco, was a little below that of October 1949-september 1950~

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FEBRUARY 1952 . - 24-

Exports of fire-cured tobacco during the 1950-51 marketing year at close to 40 million pounds (farm-sales weight), were sharply higher than the relatively low 1949-50 leveL, Exports of Kentucky-Tennessee fire ... cured (accounting for over four-fifths of the total) increased by nearly 50 percent. France took more than any other country ... -over one-fifth of the total--and the next ranking countries were Netherlands, Switzerland, Belgium, Spain_, Sweden, Britain, and French 1rTest Africao All of the above countries and also Ireland and Algeria took substantially more Kentucky­Tennessee fire-cured in 1950-51 than in the preceding year but smaller amounts went to Germany, Denmark, Nor~·ray, Italy, and Portugalo

The exports of Virginia fire-cured tobacco declined 8 percent from 1949-50 to 1950-51 and were the smallest on record except for 2 marketing years during l:r-Torld 'tr-Tar II., Norway (accounting for two-fifths of the Virginia fire-cured exports), Switzerland, Sweden, and New Zealand took significantly larger quru1tities than in 1949-50, but these increases were more than offset by the sharp drops in shipments to the United Kingdom, Germany, Austria, Netherlands 1 and Australia 0

In October-December 1951 (first quarter of the 1951-52 marketing year), exports of both Kentucky-Tennessee and Virginia fire-cured were smaller than in the same months a year earliere The largest amounts went to Netherlands, Belgium, Switzerland, Germany, Austria, Sweden, Norway, and French Africao

DARK Am-CURED, TYPES 35-37

Kentucky ... Tennessee Prices Well Above Low 1950 Level - -----

Auction markets for the 1951 crops of Kentucky-Tennessee dark air­cured tobacco, One Sucker (type 35) and Green River (type 36), began during the first third of December and for Virginia sun-cured, in late Novembero Prices for One Sucker and Green River averaged 34o4 and 34oO cents per pound, respectively, compared 1-rith 23"6 and 22o6 cents last seasono The 1951 crop averages are higher than those for any previous year. The quality of the tobacco was greatly improved over that of the 1950 season, when there was a very poor crop due to adverse weather conditionsQ The auction price average of 1951 Virginia sun-cured was 34;5 cents·per pound compared with 33.8 cents last season. This season's average about equals the record 1943 average.

The 1951 price support level for the dark air.cured t,vpes was 33.2 cents per pound--2.7 cents above the 1950 support level. The price support for dark air-cured tobacco is computed at 66 2/3 percent of the Burley support level. Growers placed about 5 1/2 million pounds of One Sucker, lc8 million pounds of Green River, and only a few thousand pounds of Virginia sun-cured under Government loan~ These loan quantities were about 30 percent, 19 percent, and less than 1 percent, respectively, of total deliveries to the markets. In the 1950 season1 18 perc~nt of the One Sucker, 14 perce~t of the Green River, and only a neglig~ble amount of type 37 went under Government loan.

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TS-59 . ..; 25-

.. . ' AVo 1934•38:. .35o5 62a8 9_8-ll3 -39.D 27"0 12c.O 9e4

'•

-19.3~· 44~2 56o1 100~3 341)7 27o.3 ·7o4 7o3 1940 42S 65~6 108,1 3.3o7 29o0 4o7 7~7 1941 31a5 74~4 105o9 41.9 .38c9 3to0 12o0 '1942 ·. . 35.,2 _64oO · 99o2 33Q9 29o8 4-.:1 15oO . . 1.943. 30.0 .65(!3 -9563 37~6 34(;4 3v2 27o2

· .. 1"944 • -44~9 57:.7. l,02.6 li2"2 35,9 6.3 23,.3 • . 1945 43e6 60.4 104.c0 1J3o'6 30.,5 13ol 25.2 1946 · 49o~ 60o4 l10c0 37.3 29o7 7o6· 22.:5 1947 • 37~2 72o7 , 109e9 32e7 26\)3 6o4 25.8 .. 1948 . 34o8 77o2 112e0 .37 ~9 23ol 14~8' 28117 .

. . . . -1949 .·35~9. 74.1 llOeO 30o2 24.,0 6.2 28~2 1950 2-/ 28.~6 'i9.8 . 108('4 36~7 26o4 10.3 . ''24*6

. 1951 "Z/ 33S 7lp7 105~2 1 2/ 34o3 - --.. 1/ Year beginning Octobe;:r:-

iveragee . ·. ·: 2/ Subject to revision.- 3/ Auction market - . -

1951-52 Supplies Slightly · Lower Th'Ul 19.?0 ... .?1 _ ----- .

. . Totai .supply of. dark ait:"-CU!'ed tobacco for i951-52 is 105 million · pounds~-.3 percent below- tr~ 1950-51 lev~l~ The c_arry-over on OCtober 1, · 1951, was. close t<? 72 millio~ poun_ds--ct drop of 10 percent· from a ye-ar earlier. However, this was partially offset by an increase· in production from 28.6 million pounds in 1950 to 3JS million pounds in 1951. The major increase occurred in the One Sucker crop, which in 1951 was one-fourth larger than in 1950o. · - _

In the dark air-cured tobacco (types 35-36) referendum on Deqember 7, .1951, over 97 percent of the growers voting approved a continuation'ef market­irig ·quotas for 3 years beginning with t!la 1952 crop$ Virginia sun-cured (type! .37) also will be--1.mder quota in 195? since ~he 1949 .r~ferend~. on t¥s type resulted in approval- f.or · the. nex:t·- 3 years" The 1952 .acreage al],.6t~nt-· fctr' type-s 35-36 t·otals 26J600 acres ·a~d for. type '?7, 4,80<? acres. The type 35-J6 farm- acreage allotments will remain about the same. as·in 1951 and those for· Virginia sun-cured will be increased about. ],0 percento If growers harvest·about the same propo~tion of this-year's total aJlot-ment as in 1951-and yields per acre equal the average of-recent year~ (om~tting the 1950 low for types 35-.36) 1 the 1952 total outturn of dark air-cured- tobacco' would be roughly 32 mill.ion _po~ds o This, together W:i~h probable o:arry .. over· of around 70 million pounds next October 1_, would provid~ a total supply Of 102 million poun~ for 19?2;~3--slightly less than the lOS million pounds for 1951-52c

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FEDRUARY 19.52 - 26 -

Total dark air-cured tobacco remaining under Government loan on February 1 totaled about 33 million pounds (equivalent farm-sales weight). About 21 percent of this was 1951 crop tobacco1 12 percent from the 1950 crop, and 67 percent from the crops of the preceding 4 years, 1946-49~

Domes~ Use ~ Exports

Total disappearance of dark air-cured tobacco in the year ending September 30, 1951, 'tvas about 36 J/4 million pounds--over one-fifth larger than in the preceding year. Domestic disappearance at 26.4 million pounds increased about 10 percent. 111ost dark air-cured tobacco is 11sed in che'lrr­ing tobacco. However, data on manufactured chewing tobacco during October 19$0-September 1951 indicated practically the same output as in the preceding year.

Dark air-cured eJo.-ports during the 1950-51 marketing year at 10,3 mil­lion pounds (farm-sales 1<1eirht) increased sharply from the unusually small amount in the preceding year. The 1950-51 exports of dark air-cured were about two-thirds in leaf form and one-third as Black Fat., From 1949-50 to 1950-51, One Sucker leaf exports increased 70 percent, Green River leaf exports more than doublad, and Black Fat exports went up 35 percent. The substantial increase in One Sucker -was due principally to .the relatively large shipments to Spain in September. Also1 Nigeria, a major outlet, Belgium, and Netherlands took more than in the preceding yearo The sharp upturn in Green River exports was partly nue to the substantial shipment of this type to Spain in June 1951. The United Kingdom, also a major destination, got over 2 1/2 times as much in 1950-51 as in 1949-50. Liberia took slightly more but less when to Belgium~ Nearly two-thirds of the 1950-51 Black Fat exports went to Nigeria and the Gold Coast--each getting more than in 1949-50. Also, Black Fat shipments to French Africa and Western Portuguese Africa were substantially larger~

In October-December 1951 (first quarter of the 1951-52 marketing year), exports of Black Fat ran inrell ahead of those in the same months a year earlier but exports of Green River were down sharply and exports of One Sucker were a little lower. The major destinations for Black Fat were Nig-eria, Gold Coast, and French Fest Africa while ll!UCh of the One Sucker and Green River went to l3elgiumo

CIGAR, TYPES 41-62

~pplies

Filler: The 1951-52 supplies of Pennsylvania (type 41) and Ohio (types 42-44) filler total 219 million pounds--4 1/2 percent larger than for 1950-51 and the largest since 1942-43. Carry-over of these types on October 1, 195"1, v.ras 157 million pounds and the 1951 crop was nearly 62 million pounds • The carry-over of Pennsylvania filler was the largest for October since 1925. The 1951 Pennsylvania crop at 54 1/2 million pounds is estimated to be a little s·maller than in 1950 and Ohio fiJ.ler production dec] ined quite sharply from 10.5 to 7.2 million pounds~

The Januar,w 11 1952, stocks of Puerto Rican fiJler (type 46) in the United States and on the Island totaled about '9 million pounds--10 per• cent less than a·year ago. Stock~ in the United States were dovm about

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TS-59 - 27 -

one-fifth but those on the Island were up from a year earlier. During the calendar year 1951, shipments of tobacco from Puerto Rico 1vere lower than in each of the preceding 2 years, and a significant quantity came in unstemmedt (See table 13o) ·

Table 13.- Shipments of tobacco from Puerto Rico to the United States, average 1934-38, 1947-51

Total · Stenuned Unstemmed scrap

MilTI.On pounds

-'---'-·

Million pounds

Million pounds

. -------------!! Less ~han 50,000 poundso

' Binder: The 1951-5Z supplies of binder (t,ypes 51-55) total 192 mil­lion pounas-=-a 4 1/2 percent reduction from 1950-51·, when they were the largest· since 1940~41~ Carry-over on October 1, 1951, at 142 million pounds, was higher than a year earlier but the decrease in production in 1951 more than offset the ~ncrea~e in•stocks~ The carry-over for each individual type rose; although for Southern·Visconsin (type 54), the rise was slight. The 1951 production of binder types was ne~ 50 million pounds--one-fourth less than· in.l950 and the smallest ·ou~turn since 1936o For the Connecticut Valley· Broadleaf (type 51), ··acreage-~~ down 19 percent and harvestings by 22 percent, and Havana Seed (type 52).acreage and production were both down 27 percent from 19500 The· acr~age ~d production of' Southern vTisconsin {type 54) we~e.~own· 20,and 14 percent, respectively; and the acr~age and harvestings of. N.orthern Hisconsin {type 55) Here both about one-third smaller 'than·in 1950.· .

Wrapp~r,_ The-1951-52 supplie~ of cigar·wrapper (types 61-62) total -about 35 m:i:1lion pouncs--ver.y slightly· more than iil 1950-51. Tbe carry­over of.la$t.Ju*y·l was near 20 million pounds and the 1951 production was 15 million pc;mndS. The ·acreage ~f Connectic1:1t Valley shade-grown (type .61') was slightly larger in 1951. but the smaller yields resulted in a 7 percent drop in the size of the cropo The acreage in Georgia-Florida·. (type 62) was down 4 percent~ but due to record yield per acre, the c~op was the large~~ in history~ The stocks of type 62 on January 1; 1952, were one-fourth larger than a year earlier but type 61 stocks were 3 per~ cent smaller~ · .

Cigar Filler and Binder Quotas -wo't in Ei'l'ec-r-in 1952 ...._- ......... .__ ..

Quota and acreage allotments were in effect on all ciga~·filler knd binder types except Pennsy~vania filler' (type 41) in 1951; 'but in .1952, .. no quota and acreage allotments.will be in effect on any continental eigar filler and binder types 0 In the referendum for types 42-44 and 51··55 I . 65.7 percent of the growers voting favored quotas--slightly less tha~· ' the required two-thirds of those votinge In.the Connecticut 'Talley, about ' 88 percent of the Hassachuset:ts growers and 50 percent of the Connecticut

' ..

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FEBRUARY 1952 "' - 2.8 -

growers f53;vored quotas. . .About 69 percent of the ~Arisconsin and 57 percent ,··of the Ohio growers voting favored quotas. In the referendum for . .

Pennsylvania filler, about tw~·thirds of the ~rowers v9ting w~re against a CJ!lOta.

As provided by la"toJ, no price support will be avaHable on the 1952 crops of the cigar.fil~er and binder types (except Puerto Rican type 46) since the required proportion of the gror-rers voting did not approve market­ing ·quotas. T1Jhen quotas are in effect, price ·support at 90 percent of parity ~s mandatory o · · ·

Domestic Use and Exports --Total disappeelrance of cigar fi1ler (types 41-44) in the year end­

inr, September 30, 1951, was about 52 million pounds. Most of this was used in cigars and less than 1 million pounds were exportedo Although cigar manufacture showed an increase, there was a larger proportion of cigarillos, which require less tobacco. · .

Total disappearance of cigar binder in October 1950-september 1951 was about 58 1/2 million pounds compared wi. th the unusually low figure of 50 million pounds in the preceding years .A substantial quantity of the lower binder grades are used in scrap chewing tobacco, but this pr9-duct sho1-red relatively little change from the preceding year. Connecticut Valley Havana Seed (type 52) and Northern Fisconsin (type· 55) disappearances l-.rere up sha.rply from the' preceding year's lows and types 51 and 54 disap­pearances increased moderately. Exports of binder at about 2.8 million pounds (farm-sales weight), were 18 percent less than in 1949-50, Only about one-t',ird as much Hent to Germany in October 1950-september· 1951 as in the same period of 1949-50, ~-vhen this country was the leading desti­nation. Also, less went to Austria. HO~rJ'ever, Netherlands, Belgium, Denmark, and Sweden got substantially larger quantities than in 1949-50. In the last quarter of 1951, cigar binder exports were well above those in the final quarter of 1950. Most ,,mnt to Germany, Austr:La, ~nd Belgium.

The 1950-.51 disappearance of domestic wrapper at 14 3/L million pounds was q. little more than in l9L~9-50 and exceeded any previous yearts, Exports of approximately 3.6 million pounds (farm-sales weight) were slightly lower. Germany, accounting for nearly two.thirds of the total, took about the same in both year:s. Belgium got more but Netherlands and

·Denmark tpok less. In July-December 1951, cigar wrapper exports were moderately·larger than in the smae months of 1950. The principal desti• nation was Germany but Denmark and Austria also got significant amounts.

Prices

In the Connecticut Valley area, only 5 to 10 percent of the 1951 Broadleaf crop remained unsold by the end of January. The average bundle price through December was about 50 cents a pound. The 1951 crop price support level is an average of 55.2 cents per pound. Hail injury to some crops was a major factor tending to lower the general average of prices received by growers. Last season, the 1950 crop averaged 52 cents per pound. ·Also, the major proportion of the Havana Seed (type 52)' has been sold. Prices during the early part of the· season (buying started ~n late November) were averaging about 5 p~rcent higher than a year earlier. The 1951 support level for Havana Se0d tJ~e 52 is 54.2 cents per pound. Last season's averara price rece~ved by growers was 39.8 cents. In

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· TS .. 59 -29-,... ·-

Table 14fj- Cigar toba.cco, types 41~2: Domestic supplies, disappearanc~, c ~B:P.d. see,son .. averag_e_ pric.e, .av·erage 1934-38, ·annual 1939~51·: ·, · '

, ,,. I , "'"" ._ ' 1 .(,

___..:. ~·· "'-- _ __,_ ----: ~Stocks :"'"7 · · : Disapp~ara.nc.e : .Ave:re,ge

.. Tjrpe and : ,.: Production~ dctfber 1: Supply 1yeai. begint1fng ::price per · · year : : . .I 'f - : october 1 J- : ,.,ound

--- --- -- ~-- - - l;o::; _____. : Million Million Million Million . . : · pounds pounds--~ ·po1.ind~ _pounds

Filler typ~~ 41""44 2/ : · .- . · Ayer~ge- 193h-38 - .: ·. 4899 Av<?1'~~: 19'39-43. . : .... 60.,0

1950 .. 3/:. 1951 1/ . ' - .

Binder types 51-56 Average _1934-38 .

. 193·9 ,_. l940. ·. . . 1941 ··.

'. :19h2- .. , .'1943 . ' . '

..

1944 194.5 1946 1947 : .. ... 1948 1949 -19~0--3/- .. ~. 195li-3( ,_

'.'.

Frapf>e·l'·;types 6l..oq2 Average·l934~38.

~:_ . .

193'9 194Q·:·.;t. 194~ . ~: 194'2:' ;· 1943. 1944.

. . . ' ' :

: . .. ; : . . . ' . ... • .. • ~ ....•. :: • •· • . • ,.. • • , .

... . .. • . . -· : • .

. . • .

4le8 63o3 .

·-: 61o9 61~6.

55lt2 ~lo-0 · 57o2 .·_ 62'~1 73o8

'70 3: ,0

59~7 62o0 '65~:8 • 49o&. .

8o4

11.4 9o5 •·

lOal 9o2'

lOoO llo3 ..

.

1945 11~2" . -1946 '. • 12o5 . 1947' 13o5 ·· 194E( 15ol · 1949 17o3 1950, ·)/ . • 15,:,3 ' . . 1951 "'$/.~:. 15oO • . .. ·-

159~9 208::8 54o4 154oO - 214~0 59o3'

' ' 1Lt3o8 209.5 52-&2

. . 1.57 43 218'e:9 I; .. .._-<''

165r;l 206~9· --6o~~5-.

!

45,.0~ _-·116~6 179o9 . '·134Q9 202~8 66~1-_ ·136c7 .-198;3 6o~4

l37t.9 193 .. 1, 66 ... 4 . , 126e 7 177 ~-7: 69~2 .

108•.5' 165~7 63a4 l02o3 164o4 60.9 103~~ .1ifo3 54~6 123o7 '. 19.4oO 68c2 i25Q8' 1851>5 62o3 123o2 .... 18$~2 . - .$0.-.1 13~ol 20039 -.-.--$8S: 142o4 192'.,0

-~ . -- ·- ~--· -..... -

-'. -.

111)8 20~2 .. : ·. ··~:2c3:

10B1· 2le5 7.9. 13~6- 23o1 :.· _. ;1o .. 4· 12.,7 22.,8

. ~ . 9.6:

13.2 ' 22c4 9.4: 13o0 23o0 - .. 8o7, 14o3, 25..,6 - '- ,-.10.9: 14o7 ·' · 25o9 ., -J.2o3: 13o6 26-1>1 :·<').2.7. 13G4 .z6t}9 ."<12 o4 ~ 14o5 29o6 ... i3o0 . 16.6 33o9 . l4o5 : l9o4 34e 7 . .14.7

~

20o0 35oO .~ ..

...... . .. '

Cents

. . '10,4 ],.~~6

- .~5~2

- 12.S

16·6 - ()

.. -_14S 16-.9 20e4 30~.3 30.-9 47~7 .52~7 43.4 41~2

- -36,0-35.9

.- ... ~- '

78o3

. .. : : .. -f.>7., 7 -~-. ~.:-77 .,6 :'. -. ·98o4

132(;11 167~7 196.·1 197.3 . 234e~O·, 29Go0· ~: 274.0 201~0 203'o9 .

-.....;_,: ·- -. -· .. ·: . . ... :- •• c .~ ···-~ --

1/ Stocks and disappearance for type~ 56, 61, and·62 are as of·JUly' 1o. ·, · 'Y Significant revisions of 1944-49 prodij.ction data on: filler Will· sooir"b~.:.,· come·available, and this table will carry those revisions in the ne~ issue, of The Tobacco Situation,., 3/ Subjec-t;. to revision, · · · · '·: ·.. ' ·· ._,-:,_·:

----•• ~ •• ,_ - •• ,;,: ·.... • ... ' • ;.'._1

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FEBRUARY 195'2 - 30-

Hisconsin the· great· bulk of ;the. Northern area .~ro:p was. sold by mid-February -and averaged around 32 cents per pound compared With the 195'0 s:eason·ts. . average of 28~lo The 195'1 support is 33o.S centso A little more than one­fourth of the Southern Fisconsin crop had moved by mid-February. Its support level is ·27.3 cents per pound~

Price data on other cigar types ar·e not yet available~ In the 1951 crop marketing season, price supports are in effect for all cigar filler and binder types except Pennsylvania filler type 41. FOr this type, no quota was in effect on the 1951 crop (it was rejectsd in the December 1950 referendum) and no price support can be made· available. The 195'1 crop . ,. support. levels for the cigar types not mentioned above are as follows: · Ohio types 41-44, 2641 cents; Puerto Rican type 46, 3?o6 c~nts; and New York and Pennsylvania Havana Seed type 53, 28,0 cents"

For the season through February 1, the quantities of cigar tobacco placed under loan from the 1951 crop were as follows.:. Type 52, 2.4· mil"" lion pounds; type 51 1 8oo,ooo pounds; type 54, nearly 1 million potinds; and t~rpes 42-44, 229,000 poundso The quantity of cigar tobacco from previou~ crops remaining under loan or in the Commodity Credit Corporation inventories on February 1, 1952, totaled about 13 million poundso About · 29 percent 1.ras type 54; 26 percent, type 52; 18 percent, type 41; 15 percent, type 46; and 12 percent) types 42-44~

- - - - - -- ~ ~ --Table 15.- Internal Revenue collections from tobacco products

for specified·periods

- ---. Chewing Cigars : Cigarettes Total Period y . 3_/ and : ·Snuff 3/ : : smoking : -- Million Million Million Mil. lion Million

dollars dollars dollars dollars dollars Average:

1930~34 14.3 344.6 56.9 6.9 423.9 1935-39 12.8 472o0 .54~9 6c7 547o6 1940-44 21.3 75'2.8 50.4 7.3 833.,3

1945 38.2 937,2 48o6 7.9 1_,034.2 1946 47o5 1,125.2 38"0 7ol 1,218~4 1947 47.1 1_,175.9 35.9 7.1 1,266:~7 1948 46.7 1,22096 3529 7o5. 1,311.5 1949 43o6 1,233.1 34.9 7.4 1,320.0

1950 42.8 11 262o7 34.3 7o2 1,348.1 1951 44.0 1,363.7 30.7 6o4 11 445o8

1/ Includes small cigars and cigar floor-taxes, 2/ Includes large ciga- · rettes and cigarette floor~taxes. 3/ Total includes cigarette papers · an~ tubes, and leaf dealer penalt;Les not shown separately in this table .•

Bureau o,f Pgricultural Econorrq.cs. Compiled from reports of the }3ureau of Internal Revenue.

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.. 31-

Table l6e- Acreage of tobacco in the United States, by class and type, average 193!~-38, annual 1950-51, and percentages

~-- -- --- -- ..,........_.... __ *.-- _,_ --· .....- -: : : · <:_£erce!lt.age change Class and ~Average:_ 950 l/;1951 l/tAvera~e: 1950

type ~19.34-38:.L - : - gl934-:;8: to ___________ ----·----- ...--.:_ _: _____ :_ ~to 19$1: 195L

= 1;000 1~000 1;000

Old and l'1iddle Belt, type 11 Eastern North Carolina, type 12 South Carolina, type 13 Georgia and Florida, type 14

Total flue-cured, types 11-14 Virginia, type 21 Kentucky and Tennessee, type 22 Kentucky and Tennessee, type 23 Henderson, type 24

Total fire-cured, types 21-24

Burley, type 31

Maryland,· type 32

One Su~ker » type 35 Green Ri ve_r, type 36 Virginia Slp1'"'cured, t.ype 37

Total 'dark.air-cured, types 35~37

Pennsylv~nia Seed leaf, type 41 . Miami Valley~: type~ 42-44

Total cigar fiiler,, types 41-4h -·

Connecticut-Valley Brcadleaf, type 51 Conn~ Vall~y Havana Seed, type 52 N e Yo and Pat) Havana Seed.!- type_ 53 Southern '\ll]"isconsin,; type 54 Northern',ll)'isconsin, type· 55 Georgia and Florida Slli~-~rown, type 5?

Total cigar binder, types 51-56

Conno VaJ.ley Shade.:.gro~~ type 6~ Gao and Flao Shade•grown, type 6?

Total cigar wrapper, types 61-62 Lr.uisiana Perique, type 72

Total ul types . .

acres acres --- ---.327 .. 1 3h8..,0 296o6 307;)0 155o7 193~0

~ 83,7 110.4

acres

396(!0 356oO 224oO 134o1

Percent +21.1 +20110 +43o9 +60o2

Percent

+13.8 +16.0 +16~1 +21.5 :-------- +2836 863.1 958o4 l_,llOol --+15o8

0 ·==-= 23~1 9~8 76.)7 2969 )2e4 13.3

9 .. 9 -57ol 29o3 -61~8 11e8 -63.6

===-+1.0 -2,0

-11.3 3o0 ~o bO ,0

----~-- ---: 135~2 53$0 51 .. 0· · -62c3 -JoB ~=~ - ==-===

347-..2

.. :. 7f)2 5o4

o? . 8.,9 . 6o7

Y 1o0

s

408oJ 455~6 +Jl42 +11.6

+15o3 +22~2:

·.0 -·-16o9 +29o9.

+4,0

-19.4 -26a7 -30.0 -20o4 -32.0

~o

:1,501o3 1l599~5 1,782o3 +18o7; +1lo4

-------·---ii Pr~~ary~ - --·­'Y Includes· a small arnou.~t ·of type 45 supp1Jmted. ·by. type- 56o

. )

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Ue s. Department of Agriculture l1Yashington 25, D. C.

Penalty for private use to avoid payment of postage $300

OFFICihL BUSINESS

BAE-TS-59-2/52-1900 Permit No. 1001

N • 'i • STAT"e COt . AGRICULTURAL EC~=~ OP'AGR. CORNELL UaJv•ae. . ~zcs · LIBRAar 7•21•50 ~171 -Vlltl-13 ftBA~• .·. , . .· ,.,.. •• 1'.

~- ~-------- ~.- ~ - - - - 32 - - - - - - • - - - -·- - - - ~

Table 17 ... Tobacco manufactures: Net sales, costs and expenses, net income, and profit ratios, annual 1947-50,

by quarters 1950~51

--- __ ....._.. __ """' . : Profit . --- :As percentage of Costs, : ·Net income ·Per dollar stockholders' Year :expenses,: of sales : equity (annual and . Net :and other: . basis) .

sales .

quar-: - -de due- :Before : After :Before : P.fter :Before : After ter tions =Federal:rederal:Federal=Federa1=Federal:Federal =income :income :income :income :income: income

: tax : tax : tax . : tax tax . tax . --- . Ni11ion IvJill~ :Hillion Million :d9llars dollars dollars dollars: Cents Cents Percent Percent -- -:

1947 2,641 2,463 178 109 6.7 4.1 16.6 10.1 1948 3,081 2,824 257 1S9 8o3 5.2 22.0 13.7 1949 ,3,061 2,811 250 156 8~2 5.1 20.2 12.6 19~0 3,129 2,849 281 152 9.0 4.9 21.3 11.5:

1950 1 703 652 .52 32 7.h 4.6 16.4 10.0 2 775 712 63 39 8.1 5.0 19.2 12.0 3 839 754 85 45 .10.1 S~l1 25o2 13.2 4 812 731 81 36 10.0 4.4 24.4 10.8

1951 . . 1 751 683 68 32 9.t1 4~:~.3 20"4 9.6 2 828 759 69 34 8.3 4.1 20.4 10.0 3 854 778 76 31 8.9 3.6 .. 22.5 9.2

Bureau of J',gricu1tural· Economies. Compiled and adapted from Quarterly Industrial Financial Repcrt Series of Federal Trade CoMnis~ion and Securitl.es and E~change Commission.