TOBACCO PROSPECTS

Evening Post, Volume CXVIII, Issue 151, 24 December 1934, Page 10

TOBACCO PROSPECTS

LEAF PRICES HIGHER

Prospect* for the forthcoming season's tobacco crop were again very poor, stated Mr. C. L. Bentley, deputy chairman of British Tobacco Company (Australia), Ltd, at the annual meeting of shareholders. ' Since the company's last annual meeting there had been definite signs of lmpiovcment in the economic situation, said Mr. Bentley, but, so long as conditions in other parts of the world remained unsettled, the purchasing power of the Australian public could not wholly be lestored. . The leaf-buying season in the United States of America was well advanced, arid, from advices received since thfe sales had commenced, prices had increased to a. material extent over those mling last year, with the result that the manufacturing costs of subsidiary companies would be substantially increased. Tv*jth regard to the 1934 domestic crop, tH$ company had given the Fcdeial Government'a similar undei taking to that given in respect of the 1933 crop. This undertaking, which, was now about to be executed, was for the purchase of all bright leaf available, and for the replacement of stocks of mahogany and dark leaf equivalent'to the combined requirements for one year, provided the leaf wjs of a Quality suitable for the company's manufacturing requirements. Owing.to the ravages of blue motild and adverse climatic conditions, the crop would probably not exceed 2,750,0001b, kaA growers bad found no. difficulty m selling all the usable bright and mahogany leaf out of this crop. The forthcoming season's crop in almost all growing areas had been seriously affected, and prospects in' Australia were again poor. In Australia, blue mould materially interfered with .the continuity of supplies of the requisite types of high-class bright leaf, as well, as reducing the quality and quantity of'the leaf. In addition to having leaf of suitable type and quality, the manufacturer must also be assured of continuity of supplies aijd reasonable uniformity in quality. This was one aspect often lost sight of'by advocates of an embargo on imported leaf.