Tobacco Documents Online

FROM: TheTobaceo Institute; 1'776 K St., N.WI:,,VNashington~,D.C'. 20006: Telephone: 202/296-8434 . All data for 1974, unless otherwise stated 1975 Consumption Total U.S. consumption including overseas armed forces was: • over 610.4 billion cigarettes-an historic high • about 6:4 billiomcigars and cigarillbs • about 59.6 million pounds of'pipe and roll-your-own tobacco • about 79.2'million pounds of'chewing,tobacco • about 25.0' million pounds of snuff The output of cigarettes from U.S, factories was 635 billion. 11 Of'the t'otal„ 10.4 billion cigarettes were shipped to overseas forces, 11.9 billionito Ptrerto Rico and' U1S. islands and' 46.9 bil'lion to other countries. Per capita U.S: cigarette consumption„based on the whole popul'ation 18 and over, was 4'„150', compared with the record 4,345 in 1963' and the recent'.low 3,985 in 11970. Expenditures U.S. expenditures for tobacco products were estimated to total almost $14.5' billion,, a record high and'andncrease of more than $965' million over 1973. About $133 billion was for cigarettes, $705: million for cigars and $475' million for pipe andl roll-your-own tobacco, chewing tobacco and'. snuff. „ WorW Production Total world prod'uction of tobacco is estimated at a record'' 11:4 billion pounds, about 7 percent more than in 1973. Major tobacco producing nations were: Peoples' Republic of Chinai (2',224;993,000 pounds),. Uhited States (1,962,634,000), India (973;110,000); Russia (663,578,000), Brazil (479,498;000), Turkey (3'86,24'2',000), Japan (327,599,000),, Bulgaria (308,642;000), Indonesia (276~446,000) and Canada (262;830,000). SQIIJIE, FACTS' ABOUT TOBACCO

2 United States Tobacco Prod'uction, TOB/YOCO' Tobacco is grown in 23 states on 400,000 farms. There were 530,858' allotments to GROWERS AU'CTIONS' About 96 percent of the nation's tobacco is sold at auction in 175' markets in 112'. OROP' INCOME There were 865 warehouses: at the markets in Virginia, North Carolina, South Carolina, Georgia, Florida, Maryland, Kentucky, Tennessee, West Virginia, Ohio, Indiana andl Missouri. They handled 13 types of tobacco leaf. grow tobacco issued by the federal governmenG.*' The acreage harvested was about 962;000 with an average yield of'2,036 pounds per acre. Tobacco growing, requires a great! deal of labor. There are about 600;000, farm families involved in, producing tobacco in the UiS.,, aided by additional seasonal workers. About 300 man-hours of! labor are needed to harvestl 11 acre of tobacco. Ih comparison, it takes about 3 man-hours tolharvesC an acre of' wheat. states. Aboutl 4 percent, largely cigar leaf, is sold directly from the farms or, by farmers' cooperatives. Tobacco was the fifth largest cashi crop, behind corn,, soybeans, wheat and cotton. The crop was worth abouti $2.1 billion, representing about 2.2 percent of the total for all agricultiural commodities. The estimated value of the crop in 116 major tobacco states was: [millionsll North Carolina ------ ------ ---- ---------- -------- Kentucky ------- ------------- ------------ ------ $817 474 Connecticut,_----_--__-------------------- $17 I nd i ana --------------------------------------------- - 15 Virg in ia ---------------- -- -- -------- ------------- 172 Ohio ------------------- ---------------------------------- 14 South Carolina ----------- --- ------- ------------- 171 Pennsylvania ------------ -------------- --------------- 11 Georgia -------------------------------- ----------------- 170 Wisconsin ------------------ ------------ ------------ - 11, Te n n e s s e e----------------------------------------- 1'25' Massachusetts ----------------------- -_------- 6' Florida! ----------------- ---------- ------------------- 34 Missouri -------------------- ------ ---------------- ------ - 5' Maryland ---------- ------------- --- 29' West V i rg i n ia ------------------------------------------- 4 To a lesser extent, tobacco is also grown ini Alabama, Louisiana, Minnesota and New York. Arkansas„ Illinois, Kansas, •Th'eaelotment total islargertharr the.numb'erof farmsbecavse somefarmsare allotted growth of more than one typeof, tobacco. ~~

3 TOTAL EXCISES' Government Receipts From, Tiaxes Federal, state and' local governments collected about $5,887,995;000 in directt taxes on tobacco, prodUcts. 98.5: percent represented taxes on cigarettes-some $5,801,198,000. Taxes on other tobacco products totaled about $86,797,000. FEDERAL The federallgovernment'.s share was $2,437,005,000, with cigarette taxes„at 8 cents per pack, accounting f'or 97'.8 percent or $2,383;038,000. About $53',967,000 in taxeswere collected for other tobacco products, mostly cigars. STATE AND' State taxes on all tobacco products totaled an estimated $3;340.678,000: Of the total, LOCAL ' $3;308,000:,000; or 99 percent, represented cigarette taxes and $32 ,678,000 were collected from sales of other tobacco products. 300 city and county governmentt tobacco taxes came to $110,3 '12;000: Of that amount, $1' 1I0;160;000; 99i9 percent; represented taxes on cigarettes. Local governments also collected $152,000 in taxes on other tobacco products; Since 1863,,when cigarettes were added to the tobacco products taxed by the federal government, governments at all levels have: collected more than $107 billion, in, tobacco taxes. Cigarettes have accounted for 93.1 percent of that figure or about. $99.7 billion. Because of' increased sales and higher cigarette taxes in many states, smokers paid, 4.3, percent more in state cigarette taxes than ini 1973. Nearly 50 percent of the proceeds of domestic retail sales of cigarettes to civilians wenti to~federal, state and local: government treasuries in the form of' cigarette excises. Government Tobacco Pro~granns, FARM The Department of Agriculture adminisders laws to stabilize tobacco production QUOTAS' and assure fair prices. Most tobacco farmers; through periodic referenda, havee continually favored marketing quotas. Because of the production controls, less tobacco is produced at higher prices than would likely be the case without them. LOANS When growers approve marketing quotas for a certain: type of tobacco„price supports for it are mandatory. Under the price s:upport program the Commodity Credit Corporation (CCC) makes loans to farmers through their associations with the tobacco as collateral. The associations handle and sell the tobacco and repay the loans as the tobacco is sold. The realized: cost of the price support program since its start in 1933 has been about 0,13I percent of the cost for all farm commodityy price support operations: CtiR'AD1NGThe Department of Agriculturealso~gradcsall tobacco before it is sold. Government grade standards are the basis for CCC loans„ Daily market news reports inform growers of prices and market condi'tions. The 1974 fiscal year inspection and market news service costs were $5.6 million. Cr^ 6=31111111 G11 I W ' Ul (n

4' FOREIGN Sales of tobacco abroad with very reasonable credit terms under Public Law 480; PROGRAMS' the "Food f'or Peace Program;" amounted to $30;9 million. Allaniufacturiing FACTORIES There are abou 170 tobacco products factories with federal permits and some 37 other facilities, large and small, in 24 states. They manuf'acture cigarettes, cigars,, ehewing,,pipe, roll-your-own tobacco andI snuff. North Carolina, leads in cigarette production, followed by Virginia and Kentucky. EMPLOYMENT' Tobacco manufacturers employ about 75,000'men and women representing hundreds ,. of millions in payroll dollars. INDUSTRY EMPLOYEES Cigarette ----- ------- - - 46,000 Cigar - - -- - - - 14,000 Chewingl pipe, rolf yourrown & snuff ----------- 3,500 Stemming and redrying ------- -__11,500 RELATEm! : Uncounted other persons are`employed by organizations that serve the tobaeco INDUSTRiES; industry: flax-straw fiber for cigarette paper; factory machinery; Rlastics, paper, foil, cardboard and printing; trucking, shipping and advertising. Distribution RETAI!L There are an estimated 1'.5 million retail outiets distributing tobacco products,, withh more than 5' million employees. WHOLESALE There are also an estimated 2,145 primary tobacco wholesalers, The 1974 trade estimate of the wholesale value of! tobacco~and' related products is $7,¢4'6,859;785. WHOLESALE VALUE Cigarettes -------- --------------------------------- $7;104;377,4'07 C i g a r s--------------------------------------------- 497,417,534 Tobacco (chewing, pipe, roll-your-own & snuff) _________________ 147,745;328' Pipes -------- ----------- --------------- --------- 34,361,162 Other smokers' articles -------------------- 62;958,354 W `=

5 LEAF Exports and Imports The United States is the leading, tobacco exporter and the third largest tobacco importer. In recent years about one-third of the U,S: tobacco crop has been exportedt ln, 1974, U.S. exports of' leafl tobacco andl manufacturer products totaledl some $1.2 billion, a: record highL Imports came to approximately $2'115 million. The difference represents a positive net contribution of nearly $1 billion to the U.S. balance of payments in calendar t974!. These totals include 651.4 million pounds of exported unmanufactured leaf tobacco. Value of the leaf exported' was $832' million; compared with $681 million in 1973. Imports of unmanufactured leaf came to 300 million pounds valued av $182.5 mil- lion. The quantity represents a record high and a 10 percent increase over the 273 million pounds imported in 1973 when the value was $157 million. The majority of the leaf imporrted, 188 million pounds, was destinedl to be used in domestic cigarette manufacture. Most of this leaf came from "ll'urkey, Greece and. Yugpslavia PRODUCTiS' The value of exported manufactured products was $3'60.5 million. The value of' imported manufactured products was $32.6' million compared with, $24.4 million in,1973'. CIGARETTES About 46.9 billion cigarettes, 13 percent more than in 1973„and valued at $301 mil- Iion; up 20 percent over the previous year, went to over 100 countries. The leading, importers were Hong Kong, Belgium-Luxemburg, Spain, Netherlands Antillus; Lebanon, Saudi Arabia, Panama„ Ecuador, Kuwait, Japan and Mexico. About,257.7 million f'oreign cigarettes; valued at $1,693,000, were imported. OTHER Cigar exports felllto 86.4'i million units and were valued at about $3.9 million. The PRODUCTS quantity represents a 20 percent decrease from 11973: About 74,712,000 f'oreign cigars were imported with a value of about $'13.5':millioni Exports oflpipe and roll-your-own tobacco in~bulk were 38'.5 million pounds and'in packages 1.3 million pounds. Their value: was $53.4 million and' $2.2' millionn respectively. Exports also included 122,000 pounds of snuff andl chewing tobacco worth $206,000. Imports of smoking, and other manufactured tobaccos came to 110.9 million pounds valued at $17.4 million.

6. SHIPPING About 97 percent of' all the leaf'tobacco exported was shipped' from east coast ports. The five major ports were: Pounds Value Norfolk 310;000,000 $384,000,0M Wilmington, N.C. ----------- ___----------- 256;000,000 338,000,000, Baltimore ------ ----------------- ------ -------- 13,000,000 18,000,000, New Orleans ------ ---- --------------------- 13,000,000 1hi000,000~ New York City --------- _-------- _---- _------ 12,700,000 23;000,000i Cigarettes accounted for 83 percent of'the total value of the exported manuf'actured tobacco. The five major ports shipping cigarettes overseas were Baltimore,, Miami, New, York, Norfolk and San Francisco. Tobacco andl Health R~eseartcfh In the interest of absolute objectivity, the tobacco industry has providedl hundreds of totally independent research grants. This completely nonrestrictive funding has resulted in publication of thousands of'scientific papers on smoking,and' health in leading medical journals. The combined commitment by the tobacco industry for these projects amounts to more than $541 million. In many years the tobacco industry's commitment! in this area has exceeded that of any government agency and substantially exceeds the research expenditures on smoking and health reportediby all the voluntary health, associations combined. SOURCES: U.S. Department'.of'. Agriculture: Annual Report on Tobacco Sdtrtistics; Agricultural FfarketingService;. TheTobacco. Situation,, issued! quarterlyy bythe. Economie . ResearchSenvi¢e;. Foreign A'gricultameCircutar, Foreign Agriculture Service. U.S: Departmenvof' Labor,. Eni ployment and Earndngs. Statistics . f or th'e. United . States. U.S. Department of.theTreasury;Bureau of A9coholj.Tobacco.and Firearms, Atcohol,.andTob'accoSummary Statisticr. TobaaccoTax Council, TheTaz.Burden on Tobacco, 5407 Patterson Ave.,.RichmondJ,Virginia.29'226. National Association of Tobacco Distributors, Th'e.Coordinator., 5g'.East 79th Street, New.York, N.Y. 1[x)2.1L