The common leaf tobacco grower price for Japan’s 2016 harvest has been fixed at a reduced stage than that of 2015 regardless of the sole buyer’s having declared a week ago that its earnings rose.
Japan Tobacco International stated several days ago that the Leaf Tobacco Deliberative Council (LTDC), chaired by Yoshio Kobayashi, had published its yearly determinations for local leaf tobacco farming region and grower prices for the coming 2016, in response to an offer put forward by JT earlier in the day.
‘The Council was in normal agreement with JT’s offer, and confirmed that in 2016, the local tobacco farming area will be established at 8,276 ha, a lower by 3.4 % in comparison to the contracted area of the earlier period,’ JT stated in a note submitted on its official website.
‘The leaf tobacco grower price calculated for all leaf types will be established at an average of ¥1,877.57 per kg, a drop of about 2.21 % in comparison to that of the previous year.
For this year’s crop, the grower price was arranged at ¥1,920.1 per kg, a boost of 0.71 % on that of 2014, ¥1,906.47 per kg, which price was exactly the same as that of 2013 however higher by around 0.84 % on that of 2012.
The LTDC is referred to as a council that confers on major issues related to the cultivation and purchase of locally grown leaf tobacco in response to requests by JT distributors. It includes at most 11 members who are hired by JT, with the authorization of the Minister of Finance, from among representatives of local leaf tobacco growers and academic appointees.
In proclaiming several weeks ago its outcomes for the nine months period to the end of September, JT stated that its altered operating revenue for its local cigarette business had elevated by 5.1 % (from ¥187.9 billion to ¥197.6 billion).