TOBACCO INDUSTRY.

Auckland Star, Volume LXIII, Issue 288, 5 December 1932, Page 4

TOBACCO INDUSTRY.

KEEN COMPETITION. MR. HUSHEER'S VIEWS. In his annual report to shareholders of the National Tobacco Co.. Port Ahurin, the chairman of directors, Mr. G. Hushcer, says:—

While there is no doubt that consumption has declined all round, competition, on the other hand, has been keener and far more accentuated than at any previous period. Numerous new brands of pipe and cigarette tobacco, local and imported, have made their appearance in quick succession, they are being thrown upon an already satiated market incapable of absorbing any more.

It will appear that our little country has suddenly become the dumping ground for the surplus of some large manufacturers abroad who are trying to make up the shrinkage in the home market by increased exports. It pays them to offload this surplus at cost, or even below, if they can thereby keep their works fully employed. They are favoured by a Customs tariff that offers little or no protection to the local manufacturer, who has to pay for his raw material at a very much higher rate than his rival across the sea. What makes things worse is the relentless price cutting war that is being waged among wholesaler and retailer and the unfair business practice adopted by some.

Saturation Point Reached. "The production of New Zealand leaf has kept pace with our present requirements, and when the remainder, of last year's crops will have all been taken delivery of, the total yield will be in the neighbourhood of 900.0001b, representing a value of about £70,000. Most of this money has gone to the Nelson district. Apart from our own, there are large stocks held of New Zealand-grown leaf for which no outlet can be found either here or abroad, as the markets are over-sup-plied and export possibilities non-existent. Practically all this leaf will become a dead loss. As a precaution against overproduction, we had to considerably reduce the area under cultivation for the coming season, and some of our growers had consequently to accept a cut in their acreage, while others had to go without a contract at all. There are besides numerous applicants on bur waiting list all eager to grow for us; unfortunately, they cannot be accommodated until an increased demand warrants an extension of acreage, and this can hardly ho hoped for as wo "eetn now to jiflV) dcfin'telv reaelipd Ratu"'n.tion point, beyond whinh the nrocess of absorption cannot continue either of leaf or manufactured tobacco." i