Tobacco Documents Online

DRAFT LETTER Mr. Keith Summa ABC World News Tonight Street address New York, NY zippp Dear Mr. Summa: ABC World News Tonight's recent segment on tobacco growing in the United States and overseas (February 28th) omitted several important points. Even though these facts were provided to you by Philip Morris International, Inc., prior to your broadcast, I wanted to restate them in the interest of fairness and balanced reporting and the hope that you will consider including this information in future reports on the U.S. tobacco industry. There Is a Shortage of U.S.-Grown Tobacco. First, we believe that tobacco grown in the U.S. sets the world standard for quality, and that the single problem with domestic tobacco is that there is not enough of it. While we would certainly buy more U.S.-grown leaf if it were available, any shortfall forces us to source overseas to meet our production requirements. We are currently encouraging domestic burley growers to increase their crop to meet current demand. The demand for U.S.-grown tobacco is so great that the Department of Agriculture has announced a record level for burley tobacco growing quotas this year. The 1997 burley quota for the eight-state burley growing belt was set at just over 704 million pounds. When you add in the shortfall in production under previous quotas, the actual amount tobacco growers can produce in 1997 is more than 884 million pounds. That's an all time record quota, topping the previous record of 875 million pounds in 1991. Yet the fact remains that last year the amount of burley tobacco grown fell more than 189 milliori pounds short of the 1996 effective quota. While there has been some decline in the number of U.S. tobacco farms due to consolidation, the increased quota allotments noted above indicate that there is tremendous growth potential in the long term for U.S. tobacco growers. Demand for U.S.-grown burley is at an all-time high. Worldwide consumption of American-blend cigarettes is rising by 3 to 4 percent a year, and the U.S. has become the world's largest cigarette exporter, with 34 percent of all cigarettes manufactured in the U.S. sold overseas.

2078315044 Philip Morris U.S.A. Supports Domestic Growers. Second, contrary to the information presented in your February 28th broadcast, Philip Morris U.S.A. provides significant support to domestic tobacco growers. = Philip Morris U.S.A. supports the GATT action pursuant to Article XXVIII, which established the current tariff rate quota on burley and flue-cured tobacco and helps bring stability to the domestic tobacco market. ¥ We are the largest single purchaser of their leaf in the world. In addition to meeting our domestic requirements, through exports of both cigarettes and tobacco, Philip Morris is a major contributor to the long-term viable operation of the domestic tobacco program. Y We support research and extension programs at land grant universities to improve tobacco farming efficiencies in the U.S. ¥ We provide scholarships and fellowships for students majoring in agriculture and agronomy. ¥ We have award programs for U.S. tobacco research and for outstanding tobacco farmers in the U.S. u We support the successful operation of the federal Tobacco Program, and as part of that commitment, we have participated in buy-outs of surplus stocks and have agreed to share paying the no-net cost assessment fee with growers. Philip Morris U.S.A. will continue to take steps to ensure that an adequate supply of tobacco grown in the U.S. is produced to meet our manufacturing requirements in both domestic and international markets, as well as to meet worldwide demand for U.S. grown tobacco. We hope you will consider these facts the next time you decide to run a story on our industry, so that your viewers will receive a more fair and balanced perspective. Sincerely, Karen Daragan Director, Communications Philip Morris U.S.A.