burley, there may be a significant shift also away from 

 oriental to these other tobaccos, especially burley. This 

 shift could be fairly rapid on some of the better land; 

 however, much marginal or submarginal land in the 

 dry areas would be classed unsatisfactory and uneco- 

 nomical for growing of flue-cured or burley. 



The production of burley is likely to receive encour- 

 agement from the governments of Greece and Turkey, 

 mostly because of the ultimate duty-free treatment their 

 tobaccos will receive in the Common Market countries. 



First Greece, and then Turkey, have made Associa- 

 tion Agreements with the EEC, with tobacco exports from 

 these two producing countries scheduled to be admitted 

 duty-free. (At present, their tobaccos are assessed only 

 30 percent of the duties which were in effect in the 

 individual EEC countries in 1957.) 



Production of burley-type tobacco on a commercial 

 scale is a new venture in Greece. The government 

 gave assistance in 1962 both to the growers selling 

 direct to exporters and to all other growers. To the 

 first group, they subsidized the curing barns with 1,000 

 drachmae ($33.30) per 100 cubic meters of barn 

 space. To the second group, the National Tobacco 

 Board guaranteed purchase of the crop at the price of 

 23 drachmae per kilo ($0.35 per pound) and 700 

 drachmae ($23.30) per 100 cubic meters (131 cubic 

 yards) of space. Subsidies and support have been 

 modified since the 1962 crop. 



In 1964, the National Tobacco Board did not offer 

 any guarantee to growers in the purchasing of their 

 crop. Curing barns for small growers were subsidized 

 up to 75 percent of the former level of 1,100 drachmae 

 per 100 cubic meters of barn space. Larger growers 

 were subsidized progressively less. Twenty big export- 



ing firms with large acreages received no subsidy. The 

 1965 budget for the support of the cultivation of 

 burley-type tobacco in Greece was 19,500,000 drachmae 

 ($650,000). 



Burley production in Greece by areas, for 1962-64, 

 developed as follows: 



1962 1963 1964 



1,000 lb. 1,000 Ih. 1,000 lb. 



Central Macedonia 441 1,984 4,630 



Katerina 441 838 992 



Thessaly 265 1,323 2,094 



Other 66 66 220 



Total 1,213 4,211 7,936 



Acreage for commercial production of burley-type 

 tobacco increased from 640 stremmas (158 acres) in 

 1962 to a total of 20,000 stremmas (approximately 

 5,000 acres) allotted for 1965. It is considered possible 

 that acreage will increase i^ to IVi times the 1965 

 level. 



Greece's undertaking the production of a non- 

 oriental type of tobacco comes at a time when there 

 is general overproduction of oriental, and an oppor- 

 tunity to take advantage of Greece's associate member- 

 ship in the Common Market. 



Turkey is doing research on burley and flue-cured 

 tobaccos. Interest in Turkey stems perhaps from the 

 same reasons as those in Greece. 



Syria and Yugoslavia also are growing flue-cured 

 tobacco. 



This discussion of burley and flue-cured tobacco is 

 likely to indicate to readers the possibility that the 

 current shift taking place in Greece may be a forerun- 

 ner of other shifts in tobacco production which may 

 take place in other countries. 



Marketing 



After recent blue-mold attacks in many areas pro- 

 ducing oriental-type tobacco, prices rose sharply. The 

 short 1962 crop, which after manipulation would be 

 ready for export in 1963, sold for increased export 

 prices. 



Export prices are expected to be lower again since, 

 with the blue-mold disease checked, production has 

 taken a sharp upswing. 



In 1965, there is a rising surplus of oriental-type 

 tobacco. It has been estimated that there will be about 

 60 million pounds of exportable grades (1963 and 

 prior crops) available in Greece by June 30, 1965 and 

 200 million pounds in Turkey. The 1964 crop is yet 

 to be manipulated and will not be ready for export 

 till 1966. 



Bulgaria and Yugoslavia are reported to have ample 

 tobacco available for export in 1965. 



Methods 



Oriental tobaccos move in quantity in world trade, 

 with the total amount traded ranking next to the world 

 trade in flue-cured. 



Oriental tobacco producing countries make wide use 

 of trade agreements and/ or bilateral arrangements for 

 exporting their tobacco. Most depend heavily on the 

 exports of oriental tobacco for earnings of foreign 

 exchange. Governments encourage both production 

 and exports. 



Generally, the tobacco is purchased in the country 

 by local dealers or buyers. If they do not have manipu- 

 lating facilities, the local dealers or buyers in turn sell 

 to manipulating companies, the government, or monop- 

 oly representatives. In some cases they sell instead to 

 manipulating companies which operate under contract 



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