• March 29, 2024

Japanese growers to miss out on profit sharing

The average leaf tobacco (all types) grower price for Japan’s 2016 harvest has been set at a lower level than that of 2015 despite the sole buyer’s having announced a week ago that its profits were up.

Japan Tobacco Inc. said yesterday that the Leaf Tobacco Deliberative Council (LTDC), chaired by Yoshio Kobayashi, had released its annual determinations for domestic leaf tobacco cultivation area and grower prices for 2016, in response to a proposal submitted by JT earlier in the day.

‘The Council was in general agreement with JT’s proposal, and determined that in 2016, the domestic tobacco cultivation area will be set at 8,276 ha, a decrease of 3.4 percent compared to the contracted area of the previous year,’ JT said in a note posted on its website.

‘The leaf tobacco grower price for all leaf types will be set at an average of ¥1,877.57 per kg, a decrease of 2.21 percent compared to that of the previous year.

For this year’s harvest, the grower price was set at ¥1,920.1 per kg, an increase of 0.71 percent on that of 2014, ¥1,906.47 per kg, which price was the same as that of 2013 but up by 0.84 percent on that of 2012.

The LTDC is described as a council that confers on important matters concerning the cultivation and purchase of domestically grown leaf tobacco in response to inquiries by JT representatives. It comprises no more than 11 members who are appointed by JT, with the approval of the Minister of Finance, from among representatives of domestic leaf tobacco growers and academic appointees.

In announcing earlier this month its results for the nine months period to the end of September, JT said that its adjusted operating profit for its domestic cigarette business had increased by 5.1 percent (from ¥187.9 billion to ¥197.6 billion).