The Experiment of Tobacco Substitute Plantation at Village Level Zhao Yaqiao College of Economics & Management Yunnan Agricultural University

CONTENT Background Project Strategy Intervention Measures Preliminary Experience Present Difficulties Future Plan

Top Domestic “Modern” Tobacco Plantation

The Best Tobacco Production Equipment in Asia

Fundamental Position of Yunnan’s Tobacco Industry in China Yunnan’s tobacco industry takes the lead in tobacco industry in China. Yunnan’s tobacco tax accounts for 1/3 of China, cigarette production accounts for 18% of China.

The Fundamental Position of Tobacco Industry in Yunnan Tobacco industry has been the pillar industry of Yuannan’s economy for many years. Since 1988, 2/3 of government’s revenue and 1/4 of the population involved in tobacco industry. Yunnan has 92 counties and 789 towns with tobacco planting. Nearly 20 million families and more than 10 million people are engaged in tobacco production.

The Tobacco Plantation in Yunnan There are 103 out of 126 counties involved with tobacco planting. The annual tobacco planting area is 7 million Mu and annual output is 20 million Dan, which accounts for 39% of the whole country.

The Vitality of Tobacco Industry Only the tobacco industry can survival from the financial crisis and even get stronger.

The Government’s Perspective to Tobacco Industry The provincial government of Yunnan considers tobacco industry is critical to Yunan’s development. The tobacco industry is key to farmer’s income. The provincial party committee and provincial government put “issues of agriculture, farmers and rural area ” in top agenda. Financial increment involves with livelihood.Yunan tobacco company commit itself in following with principle of severing for farmers and rural areas, and won testimonials of “tobacco make prominent contributions to serve for financial increment and development of “issues of agriculture, farmers and rural area” by provincial government.

The Costs of Tobacco Production

Future Tobacco Development Plan by Government The main strategy of Yunnan for developing tobacco industry is “consolidating ode tobacco plantation zone, and cultivating and exploring new tobacco plantation zone”. State Tobacco Monopoly Bureau will allocate 10 billion Yuan in modern tobacco plantation. Try to expand tobacco plantation about 1 million Mu, The total plantation area will reach million Mu in Yunnan province.

Future Development Steps for Tobacco Industry Increase the price of tobacco leaf Provide the subsidy for plantation of tobacco leaf Train the professional tobacco farmers and promote modernization and development of tobacco industry Strengthen professional service and promote reducing work and increasing efficiency Explore new area for tobacco plantation

Tobacco Control Strategy

Intervention Measures （ Village1 ） Traditional Chinese medicine plantation

Intervention Measures （ Village 2 ） Forestry development

Intervention Measures （ Village 3 ） Vegetables and fruits plantation

Intervention Measures （ Village 4 ） Ecological and folk culture tourism development

Preliminary Experience Tobacco plantation brings low income to farmers who are at the bottom of tobacco industry, which is the basis for plant substitution The local government has difficulties in implementing “quota” of tobacco plantation and they have motives to seek for new substitute industries of profit. Health awareness and pressure of whole society are catalysts for industry substitution. The emergence and growth of green industry is the development opportunity for industry substitution.

Present difficulties The rigid demand for smoking guarantee certain production scale. The labor forces in rural and poor area (new tobacco plantation area) have no choice but to plant tobacco. The beneficiary policy of tobacco company. The expensive input and high risks for newly emerged industry.

Future Plan Expand amount and scale of pilot sites Strengthen cooperation and discussion with policy makers at provincial level Explore cooperation and study with tobacco company Further observation and record of pilot activities

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