By Lynsey Grove, Ian Cameron, and Maggie Bissell
Overview of Commodity Chain Grown around the world Imported by US, EU and Russia 85% of tobacco becomes cigarettes Consumed mostly in Asia, Europe and North America 20% of 43 US states’ collected trash in 1996 was cigarette butts China’s Tobacco Chain
Geography of Tobacco Production
Trends in Tobacco Consumption “Tobacco consumption almost doubled over the examined period from 4.2 million tonnes in 1970 to over 7.4 million tonnes in 2000.” 70% of increase occurred in the developing world Consumption doubled in the Middle East and grew more slowly in Africa Income increase of 4 percent over same time period The correlation between large income and population growth with cigarette smoking outweighs impact of regulation and restrictions
US Tobacco Industry Phillip Morris R.J. Reynolds Brown and Williamson Lorillard
US Tobacco Taxes Federal excise tax of $1.01 per pack State excise tax Varies by state One example: Washington state adds $3.025 per pack Generated $400,186,980 in tax revenue in 2009 (Food and Drug Administration)
Regulation Tobacco Control Act of 2009 Gives FDA regulatory power over the manufacture, distribution and marketing of tobacco products FDA must approve of new products Enforcement mechanisms Broad set of sanctions (Food and Drug Administration)
The Chinese Tobacco Industry China’s market for tobacco is by far the largest in the world, and it is almost entirely supplied by domestic production. The industry has become a major contributor to deforestation through clearing for virgin land, wood burning to cure tobacco leaves, and cigarette paper and packaging.
The Chinese Tobacco Industry II Additionally, a smoking rate of 57% for men and 4% for women results in serious public health issues. The industry is controlled by a monopoly created by the government, mainly for taxation purposes. In 2009, cigarette taxes accounted for 64.1 billion USD of the Chinese government’s budget
Tobacco and Deforestation
Works Consulted "Tobacco Stats." USDA Foreign Agricultural Service (FAS). Web. 24 May "Tobacco Industry in China: Better Money or Better Health?" China Industry Reports. Web. 12 Apr "2 Past Trends and Developments." Projections of Tobacco Production, Consumption and Trade in the Year FAO, n.d. Web. 30 Apr Crow, M E. "The human rights responsibilities of multinational tobacco companies." Tobacco Control 14.2 (2005): ii14-ii18. JSTOR. Web. 30 Apr "New report on global tobacco control efforts." Media centre. WHO, 2 July Web. 16 May "Environmental Impacts of Production: Deforestation." Agriculture and Environment: Tobacco. WWF, n.d. Web. 5 May