2013 DENIZLI TOBACCO MARKET EVALUATION
Tobacco production in the Aegean Region in 2011 and 2012 was below the demand. The annual need for these tobacco is 55 thousand tons. In panic, companies bought tobacco at a high price, almost at a single price, without looking at tobacco, in order to buy tobacco from the market. Producers who buy 70-80 kg of quality tobacco per decare feel uncomfortable with this method of purchase. It has been seen as good for producers with a yield of 120-150 kg per decare.
Due to the tobacco market conditions in 2011 and 2012, price expectations in tobacco producers increased. Yield has become the top priority due to buyers' purchasing policies. The number of producers in Denizli, which was 10 thousand in 2012, increased to 15 thousand in 2013. Producers who gave up tobacco and started to plant tobacco on demand, made production by keeping quality elements in the second place in field selection, fertilization, irrigation, crushing and drying, and in the fight against diseases and pests.
In 2013, buyers made a contract on their orders and verbally informed the producers that their purchasing policies in the last two years would change, and that they would buy tobacco according to the efficiency method, even before signing a contract. An estimated 67 thousand tons of production is expected against 55 thousand tons of orders. In 2014, the tobacco market will shrink as orders shifted to other countries, mainly to Greece.
Prices for 2013 tobacco are between 6 and 12.5 TL. Buyer companies make purchases for the stock to use the surplus of 12 thousand tons in the coming year. The companies first made a quality determination for the tobacco produced in November. They started to buy high quality tobacco from December. The tobaccos to be purchased in January and February are mostly composed of low quality tobacco. Since the tobacco purchased recently is of low quality, low prices are noteworthy.
Due to the reasons listed above, the prices given are not welcomed due to the high price expectation and production costs (between 9 - 10.5 TL) arising from the producers. In this case, the producers want to use an objection method, but the buyer company avoids signing a contract with the producer who objected for the new year.
Types of prices in 2013 tobacco contracts; 1st type 12.60, 2nd type 11.10, 3rd type 10.40, 4th type 9.05, 5th type 7.75, 6. sort 5.75, 7th type 3.60 TL varies.
In the Denizli tobacco market, where purchases in 2013 have come to an end;
Approximately 10% of the 15 thousand producers are 7 TL according to the prices above. and sold for a price below. These tobaccos are mostly due to the base quality, irrigated fields and the use of excess fertilizer. The average tobacco price in Denizli, which was 12 TL / kg in 2012, is expected to be 10.50 TL in 2013, and an income of 903 TL / decare is expected.
Tobacco companies cannot give up the Denizli region. It has become a brand due to the tobacco they produce, especially Tavas and Kale. Çalıköy, Sofular, Ebecik, Nikfer, Karaköy are the main production points. Various types of Izmir origin tobacco produced in our region give sweetness and slowness to cigarette blends with 0.5-1% alkaloid (nicotine) and 15-25% reducing sugar ratio, improve cigarette blends, sauce (additives) absorbency is good, blend cigarette blends Our annual cigarette consumption is an average of 100 thousand tons, excluding customs evasion and pirated products. With a cigarette consumption of 15-16 billion dollars, we are the 5th largest smoker in the world.
The following measures may be considered for the continuation of tobacco production.
Almost all of the cigarettes produced and consumed in our country consist of American blend cigarettes. Since tobacco produced in our region cannot be smoked alone, it can be added to blends between 5–15%. This feature limits the consumption of tobacco. As is the case in the world, cigarette companies in Lebanon, for example, are obliged to buy domestically produced tobacco for the amount they sell. In our country, even if not all, it may be required to take at least 20-30%.
Local tobacco producers should be ensured to survive by urgently reversing the practice of taking less tax from cigarettes in which tobacco produced in our country, which was implemented until 2007, is included.
In addition, the $ 3 fund, which was received per kilo to protect the producer who would suffer from the first tobacco import, started to be removed gradually in line with the action plan given to the EU commission in 2010. The fund, which was 1,500 dollars / ton in 2013, was reduced to 1,200 dollars / ton in 2014. In accordance with the foundation purpose of the fund, it is a necessity for sustainable tobacco agriculture to be taken from this import fund, even if it is 50 cents, and to be paid as a premium to the tobacco produced.
Tobacco has been produced on the basis of a written contract since 2002. While making a written contract, a farmer's certificate is required from the chamber of agriculture with the registration of the producer to the chamber of agriculture. As of 01.10.2008, every farmer registered in the chamber of agriculture is considered as a member of Bağkur as in other professional chambers. Tobacco companies deposit their Bağkur deductions to the SGK account in İzmir, where their headquarters are located. By depositing the deductions to the account of the SSI in the province where tobacco is produced, tobacco producers will reach the deduction information in a shorter time and unnecessary correspondence will not be made. 10.01.2014