Tobacco Council Releases Determinations for 2010 Tobacco Cultivation
Tokyo, November 10, 2009--- Japan Tobacco Inc. (JT) (TSE: 2914) announced that this afternoon the Leaf Tobacco Deliberative Council, chaired by Masayuki Takahashi, released its annual determinations for domestic leaf tobacco cultivation area and grower prices for 2010, in response to a proposal submitted by JT earlier in the day.
The Council was in general agreement with JTs proposal, and determined that in 2010, the domestic tobacco cultivation area will be set at 15,300 hectares. The leaf tobacco grower price will be lowered 2.16 percent from the previous year and set at an average of JPY 1,869.28 per kilogram for all leaf types.
JT will proceed with operations in 2010 based on the Councils determinations.
Cultivation area for each type of leaf tobacco in 2010
(Units: Hectares)
| | Contracted cultivation
area in 2009 | Agreed cultivation
area for 2010 | Difference |
|---|
Domestic leaf tobacco | 131 | 122 | -9 |
|---|
Burley leaf tobacco | 4,871 | 4,701 | -170 |
|---|
Flue-cured leaf tobacco | 10,930 | 10,477 | -453 |
|---|
Total | 15,932 | 15,932 | -632 |
|---|
About The Leaf Tobacco Deliberative Council
The Leaf Tobacco Deliberative Council is an eleven-member advisory body comprised of domestic tobacco grower representatives and independent experts, with the approval of the Minister of Finance, that provides counsel to JTs president. The Council was established under Article 7 of the Tobacco Business Law to discuss plans for cultivation of leaf tobacco in Japan, including grower price and the area set aside for different leaf types. The Council's determinations are incorporated into JT's annual domestic tobacco contract.
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Japan Tobacco Inc. is one of the leading international tobacco product companies. It markets internationally recognized cigarette brands including Winston, Camel, Mild Seven and Benson & Hedges. With diversified operations, JT is actively present in pharmaceuticals and foods. The companys net sales were JPY 6.832 trillion in the fiscal year ended March 31, 2009.
