Tobacco ‘nearly uneconomic’

Press, 30 October 1981, Page 21

Tobacco ‘nearly uneconomic’

PA Nelson The Government has come very close to reducing the tobacco industry to an uneconomic level, according to the president of the Tobacco Growers' Federation. Mr G. H. Hunt.,

Presenting his annual report to the federation’s meeting at Motueka. he said that the Government’s decision to restructure the industry had not been intended to destroy it But from 1813 ha in tobacco in 1977-78. only 470 ha now remained licensed. From this base, the growers, the government, manufacturers, and the Department of Scientific and Industrial Research had to re-establish an industry to provide manufacturers with enough quality leaf. During the year the federation had been almost entirely preoccupied with the Government’s proposals. The federation had devoted much of its efforts towards minimising the disastrous results

which would have ensued had the proposals been implemented as originally conceived.

With a continuing downward trend in the area of tobacco planted, which had been brought about as a result of growers voluntarily reducing the area under cultivation in order to lessen pressure on already high stocks, an increasing yield a hectare was being maintained.

Illis year the saleable yield had reached 2233 kg per hectare in spite of it's being only an average growing season. With the very much smaller area under cultivation for next year, expected yields would be even higher than in the past. The Industries Development Commission had recommended that the price of leaf in 1981-82 be no higher than $4.75 a kg. The figure finally agreed on had been $4.80 (flue-cured) and $3.90 (air-dried).