TOBACCO WAR

Hokitika Guardian, 10 April 1931, Page 5

TOBACCO WAR

A U STH ALIA BEX EE ITS. DEMAND FOR HOME-GRO'VHn LEAF. SYDNEY. March 2fi. In certain parts of the Communwenlth, particularly in Melbourne, there has been in progress for some time a hitter tobacco price war. Of course the smoker has benefited considerably bv the cheaper prices that have ruled in consequence, and i.no manufacturer has had to seek ways of producing as cheaply as possible while at the same time maintaining the quality of his output. By buying Australian leaf, which can be successfully blended with the imported product, the manufacturer avoids portion of the heavy tobacco duty. The consequence, is that for the first time in history the supply of the local leaf has exceeded the demand. Less than three years ago there was only one buyer for tobacco grown in Australia ; now there are several firms competing for the best leaf. Tobacco growers have been quick to note the change, and are now preparing for a much larger cron next year. The Minister of Customs (Mr Ford o') believes that the tobacco industry in Australia has a bright future, the high duties imposed by the Seullin Government- having act.' ed as a needed stimulant. SCOPE FOR DEVELOPMENT. It would seem that there is ample scope for the development of the industry in Australia, as the local production of leaf is only per cent, of the consumption. The Commonwealth imports 20.000,0001 b of the leaf annually at- a cost of £3.000.000. Local growers are looking forward to the time when they will produce two-thirds of the tobacco used here. They recognise that the balance may still be imported for blending purposes, includin'.; dark Virginians for thp pipe and light Carolina* for the cigarette. There arc some growers, however, who maintain that there is no reason why the whole of the tobacco used in Australia should nor he grown here, and Mr Fordo is of their way of thinking. Tr is pointed out that although the cigarette is made of various tobaccos, the Australian industry may develop to such an extent that it would he ahl,, to supply them all. As much as £9O per acre has been given as the return from certain tobacco land in Victoria. Ts it any wonder that many farmers are turning their minds to tobacco and clearing their land ready for a crop? Small firm-, of tobacco importers have been badly hit by the high duties that were imposed last year. Tt- has become increasingly difficult for them to sell at rcmuneiT.ivo prices. They