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TOBACCO OUTLOOK – SUMMARY  

Jump to full article: USDA Economic Research Service, 2006-04-21

Intro:

Slight Gain for Harvest Intentions for 2006

On March 1, 2006, tobacco growers indicated intentions to harvest 306,630 acres during the upcoming 2006 season, a 3-percent gain over 2005. Last season, harvest intentions were 319,860 acres, and 298,020 acres were actually harvested. Assuming average yields, production is expected to be around 650 million pounds, about 10 million pounds over last season. Growers are responding to favorable contract prices and adjusting to the post-buyout environment.

Tobacco leaf production during the current (2005) season is estimated at 639.7 million pounds, 27 percent lower than in 2004. . . .

The long-term decline in cigarette consumption continued in 2005 as 378 billion cigarettes were consumed, 3 percent below 2004. Yearend taxable removals were 363 billion pieces. Output for calendar 2005 was 489.4 billion cigarettes. Per capita consumption (18 years old and older) in 2005 was 1,716 cigarettes, 90 below 2004.

Cigarette exports in 2005 slipped about 5 percent

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