NEW ZEALAND TOBACCO.

New Zealand Herald, Volume LXV, Issue 20074, 11 October 1928, Page 5

NEW ZEALAND TOBACCO.

EXPORT POSSIBILITIES.

IMPERIAL PREFERENCE. ' MARKET IN BRITAIN. Tobacco growing and tobacco manufacturing arc now established in New Zealand on a small scale, and there aro strong indications that a serious attempt will be made in the near future to expand these industries. There seems, to be no doubt that this country can grow tobacco successfully and also manufacture brands which will command a sale on the local markets. It is thought almost certain that wo can at least command a fair proportion of our own trade, and we may, by strict attention to selection of varieties, and care in cultivation, possibly secure a market overseas for New Zealand grown leaf. New Zealand imports tobaccos and preparations thereof to the value of about £1,200,000 per year, so that if we are able to supply even a moderate amount »f this there is room for a very substantial industry. Since, however, growers and manufacturers enjoy a protective duty of Is 8d per lb. on cut tobacco, 6s 3d per lb. on cigarette tobacco and Is 6d on other kinds, there is a strong probability that we might be able to supply even a moderate amount of our own requirements. Opinions of Experts. New Zealand has a fair chance of building up our export trade in tobacco and this might assume important dimensions if we can provide an article of the same standard of quality as our frozen lamb, our dairy produce and our wool and fruit. According to reports of expects there is every reason to suppose that soil and climate will enable us to grow some of the most valuable varieties of tobacco to perfection. As to the possibilities of overseas markets for tobacco no better information can be gained than from the winter report of the Imperial Economic Committee which deals specially with this subject in a very efficient manner. This report says:— " In the last two decades there has been a rapid increase in the production and consumption of tobacco. For the years 1909 to 1913 the average annual production of leaf, excluding India and China, was estimated at 2,304,000,0001b.; for the years 1920 to 1922, this average was placed at 2,673,000,0001b.; and in 1926 it was com-

puted that 3,415,000,0001b. of leaf was harvested."

With regard to the consumption of tobacco the report shows that it has increased to a marked degree in many countries. In the United Kinfidom the consumption has increased at the rate of lib. per head of population since 1914, and still the consumption per head is only about one half per head of that in the United States, and somei of the European countries. It will be seen therefore that consumption is increasing as well as production. Matter of Preference. As to the preference offered by the United Kingdom, the report states that in July, 1925, the preference on Empire grown tobacco equalled 2s Ofd. a lb., and this preference was stabilised at this figure for ten years from July 1, 1926. This preference gives to New Zealand in company with other British countries, a very satisfactory position with regard to the markets of the Homeland as against America and other competitors, and it is probable that New Zealand may also gain some preference in other countries which America, the chief producer of tobacco in the world, cannot gain on account of its high protective tariff. The preference which the Motherland has given to its overseas Dominions on tobacco has already given remarkable results. The report states " Whereas the Empire only supplied 7.500,0001b. out of the 228,000,0001b. imported in 1921, it supplied 41,000,000 to the 1927 total of 222,000,0001b." This acceleration in the rate of increase," , continues the report, " would appear to indicate that the quality of Empire tobacco is approaching more nearly to the standards required by the British market- We believe that given on the side of the producer increased experience in production, strict attention to the requirements of the British markets, and given on the side of the manufacturers and British public, cordial support for Empire products, a still greater rate of increase could be established." Strong Competitors. All this is very encouraging to New Zealanders who intend to embark in tobacco growing, but they must remember that already they have strong competitors even within the Empire. Canada, India, Nyassaland, Rhodesia, South Africa, Australia have already won a footing on the British markets while New Zealand has scarcely begun to produce. It is always, however, possible for a late starter to make good in a long race, and if New Zealanders avoid the mistakes made in other countries, and starts on good lines there is every chance of success. The report says: "It is opposite to the vicissitudes of Empire pipe tobaccos in the early days of preference. The preference gave a definite advantage in duty and the opportunity was soized, especially by some of tsie smaller manufacturers to rush out a cheaper pipe tobacco labelled " Empiro" and made from whatever Empiro leaf was available. An attempt was made during tho manufacture to mask some of the strong flavours, but none tho less, a, certain • prejudice was created against Empire tobaccos. . . . 1 his prejudice has now mainly been lived ! down so far as pipe tobaccos are concerned, but growers of cigarette tobacco should not forget the lesson to bo learnt. Care of type and quality is of special importance in tho cigarette tobaccos, for in that section of the trade American | competition is likely to remain severe."

W il-h regard to tobacco prices it may bo possiblo for Now Zealnnders to obtain high values for special varieties, but when it comes to competing ngains American producers, and growers in other parts of (ho British empire, average market- ! values have to be considered. The report mentions tint, in 1926 tho American tobacco farmers received an average of 10(1 per lb. for their leaf, and vet apparently grew it at a profit. The Khodesian growers during tho same period 16 2-3 d per lb. for what would be mostly a heavy pipe tobacco. Evidently the chief competitor of Empire tobacco is tho United States, for that country during tho year 1927 -supplied ,to tho United Kingdom 31,000,0001b. of pipe tobacco, as compared with 18,000,001b supplied by Enipiro • growers, and 86,000,0001b5. of cigarette tobacco as compared with 2,000,0001b. from Empire growers. Under preference, however, and under the skill and care and gonius for organisation of tho overseas Britishers this position could soon be reversed and immensely increased demands opened up in tho Mother country. And then, of course, there are tho vast continental markets to be considered where New Zealand and other Empire growers would have to make the best terms possible against their competitor!?. "