TOBACCO GROWING BOOM

Evening Star, Issue 20254, 15 August 1929, Page 1

TOBACCO GROWING BOOM

TOO MUCH FOR LOCAL MARKET EXPORT SPECULATION [Special, to the ‘ Star.’] WELLINGTON, August J 5. Government officials are troubled by the boom iu tobacco growing which has struck tbo dominion, as it promises to yield loaf for which there is no apparent market. Four private companies are already formed to develop lands for tobacco growing in the Auckland district alone, while a fifth is iu process of formation. The prospects of selling tho le;if locally are held to ho small, as one of the largest tobacco companies now holds sufficient stocks to meet its need lor the next three years. Export trade therefore is indicated, and there aro at present IUO bales of tobacco leaf" waiting shipment from the dominion to Great Britain. Such growing, however, is purely speculative, as it is pointed out that the Government guarantee, which was granted for three years and expires with the marketing of the present crop, applies only to kiln-dried leaf, and not to .the sun-dried leaf, which has become common since tobacco-growing became popular. Everything depends upon the quality of service given by tho growers of the leaf, and until it, is seen what success attends the marketing of the first crops grown in new territories it is held unwise to enter the industry on a large scale Most of tho best, leaf in the country 'is now grown under contract with the New Zealand tobacco companies, and has an assured market. At the same time Mr C. E. Lowe, Government instructor, is impressed by the possibilities of the pumice soils oi the North Island for tobacco growing.