TOBACCO

Hokitika Guardian, 8 July 1930, Page 2

TOBACCO

PRODUCTION IN NEW ZEALAND.

OPINIONS OF AN EXPERT.

Some interesting views on tobaccogrowing in New Zealand were given by Mr R. liarkeley Smith, managing director of Messre W. D. and H. O, Wills, and the Dominion Tobacco Co., Ltd. He spoke with optimism of the future of the industry in New Zealand, and stated that much further research would he conducted into the .growing side of the business. “As regards the possibilities of manufacturing the right goods in New Zealand 1 am an optimist. There ii.ro difficulties with which every New Zealand manufacturer is faced. We are manufacturing for a. small population, we are a long way from the world’s main centres, and we have to look a. long way ahead in providing] for machinery and other requirements.” said Mr Smith. “In our own case we would claim that we are in a position to keep in touch with the most modern methods applying to -,our business and we believe that it is possible to produce in New Zealand goods equal in quality to those produced anywhere in. the world. Outlie' manufacturing side, in spite of very great difficulties, we are optimists, and our optimism is - justified by results.

NEED FOR CAUTION.

“An to the/actual growing of-tobac-co in; New-Zealand there is more need for caution than for optimism. In saying this I think I would probably have the \. support of the . Department, ofAgriculture. The Nelson growers have done well. ■ They are growing under contract, and have an assured market. Even in this area much experimental work has yet to be done. it takes a long time before the manufacturer is reasonably certain of exactly what suits the publictaste, and it may take a good deal longer to find out exactly how to grow it and cure it. We have successfully blended New Zealand leaf in pipe tobacco.,m-qd ,and we will not be |,satisfied until,pye have gone much further in this- direction. “Turning,, again to the ..prqblpm of tobacco-growing,. i,t must be j remembered that tobacco is extremely sensitive to * variations of , soil f and , climate. Tlr&- ; is,oiie of New Zealand's difficulties;, j ,ljiven in the ,swjim,q, valley the soil ..vqries;‘greatly, iff different parts, and so do ,th e temperatures. In recent year?, thq,seasons ,haye .yaried very much. .jiFor all these; reasons it will take time to establish t^ie, [growing industry on a .stable basis.,

MARKETING PROBLEMS.

“There is also the difficulty of marketing. The grower is sometimes inclined to think that all tobacco is smokeable, Th e publio' is", the 'judge, and a very, strict one. . The public seems to like, what the grower .finds it hardest to produce, i.e,, light bodied, leaf, reasonably mild in flavour, The public have no use for v the heavy tobacco wliich. is the easiest to grow. There is a' great danger that growers, hearing of iremunerative'‘prices received by others, will plunge in on the industry and be surprised at the fact that they can not sell their products. The Nelson farmers '", understand the position, because’ of their experience with haps and apples, which accustom them to the fact that the market will take only the best.

“I understand that tobacco growing, even in the United Statqs, would not be ,a profitable venture unless it was a peasant industry,” said Mr Smith. “The farmer and all his family take a share in the cultivation and harvesting of the crop. If thejr wages were .calculated against the crop, on a commercial basis, the prices obtained for tobacco, even in the United Sates, would show a loss.

CONDITIONS IN NELSON,

“In Nelson many of the conditions suitable for the growth of the peasant industry exist. The whole family helps and families near each other help each other, particularly at harvest time. That, and the fact that they are experienced farmers, is one of the biggest factors in tlieir success, It has yet to be proved that tobacco can be grown profitably in any other part of the country where similar conditions do not exist.

“Regarding the export possibilities, it is too early to form an opinion. The mere fact that good tobacco can l>e grown is not a .guarantee of sales in the world’s - markets. The preference on Empire-grown tobacco, given in Great Britain, induced the growing of very large quantities, patioularly in Rhodesia. Some manufacturers in in (England were, at first, quite optimistic about the prospect of jselling tobacco containing a large proportion of Empire-grown leaf. They offered and advertised numerous brands and gave the consumer an advantage in price over , the existing standard brands. Their optimism, no doubt, contributed to the boom which took place in Rhodesian tobacco growing. Their actual experience on the English market has been, as far as I know, that whilst fair quantities can be sold as pipe tobacco, the public will not consume cigarettes, in any large quantities, containing Empiregrown tobacco.

NEW ZEALAND’S GOOD NAME,

“It is passible that taste may change. Possibly, if Empire-grown

tobacco had been first on the field the public might have refused to change to the American leaf. The fact is that at present, although many Em-pire-grown tobaccos appear satisfactory, as regards colour and texture, there is something about them that the British public still dislike. “It may be that New'Zealand leaf will appeal where others failed. The good name of New Zealand exports in general may help it. However, it is fairly certain that after failures with other Empire-grown tobaccos, manufacturers will move slowly, and therefore it must be a considerable time before any export trade gyowjs to a large volume.”