Tobacco Interview

Production part

  1- Which methods are used in tobacco production?

Tobacco has been produced on the basis of a written contract since 2002. Production is carried out by making a tobacco production contract between tobacco producers and tobacco companies.

Tobacco production in Turkey, where the average working family members in 15 acres of fields, "family farming" is conducted in the form. It is labor intensive. It is produced in the Aegean, Marmara, Black Sea, Eastern and Southeastern Regions. Tobaccos produced in the Aegean, Marmara and Black Sea Regions are in the class of oriental type tobaccos.

Foreign origin tobaccos are also grown. Virginia and Burley tobaccos are produced in Düzce, Adapazarı and Trakya.

2- Where are tobacco seeds purchased? If it is imported, by what means is it controlled and imported? (So ​​is there any inspection mechanism to measure quality?)

Tobacco seeds can be taken in 3 ways

- Tobacco producers buy the tobacco seeds they plan to plan next year from the tobacco plants, whose quality and yield they like. It stores the seeds in a dry and clean environment. The next year he will use it.

- It is produced in the research units of tobacco companies and the Research Institute of the Ministry of Agriculture in Menemen. Certified seeds produced are sold to those in need.

Those who will produce tobacco of foreign origin either buy from their own fields or imported from abroad. Imported seeds are certified. Since the seeds are very small, they are taken wrapped in protective material. Seed import is through the Ministry of Agriculture and TAPDK. Imported seeds must have a quality certificate, ie a certificate. I'm not sure, but there may be test germination in imports.

3- How do GMO seeds affect tobacco production?

As far as I know, tobacco seeds are far from GMO applications. Standard seeds are used in tobacco production in Turkey. I do not know if there is any abroad.

4- How are tobacco saved from harmful insects and are the harmful effects of these harmful insects on the producer covered by any institution or organization? If so, which institutions and how do they cover it?

Diseases and pests are struggled in tobacco production. Tobacco mildew, tobacco powdery mildew and wild fever are among the most common tobacco plant diseases. In addition, tobacco thrips, aphids, greenworm, tobacco pregnant and tobacco flea are the leading pests encountered in tobacco production. Cultural, mechanical and chemical struggle is carried out in order to obtain a quality and efficient product. Our tobacco producers use all methods of struggle, but chemical control is used as the most preferred method. They apply pesticides in tobacco seedlings and tobacco fields. In field observations and field investigations, it is seen that a very high proportion of our producers do not use protective clothing in chemical applications. They work open to the harmful effects of chemicals. There is no institution or organization that meets the harmful effects that may occur or may occur. In addition, the farmers are trained on agricultural pesticide applications by the provincial / district directorates of the Ministry of Agriculture and a pesticide application certificate is given.

5- What are the effects of technology on tobacco production?

Tobacco is a labor-intensive product. Roughly, nearly 70% of the production costs in production are composed of labor wages. Field preparations are made by tractor. In the Aegean region, tobacco is completely sewn by machine. With the tobacco netting machine developed two years ago, tobacco batching can now be done with a machine. Tobacco production tends to decrease in the Aegean region. The number of producers is decreasing due to immigration, retirement or the trend towards other products. Since the tobacco produced in this region has to enter the American cigarette blends, cigarette manufacturers have implemented some projects in the Denizli region through supplier tobacco companies in order to continue the production. One of them was breaking tobacco with a tobacco crushing machine. Trial killing was carried out within the scope of the project with special machines brought from abroad. Due to the small, fragmented and inclined lands, the result did not yield the desired yield. In Denizli, 68% of tobacco producers are over the age of 50. Companies have to develop some technological tools to reduce the labor intensity in order to continue production.

6- In what ways does the producer sell his tobacco?

Tobacco is produced by signing a contract. You produce your tobacco. You box it. Tobacco companies are priced by tobacco experts. The resulting price is the price of your tobacco. If you find the price of tobacco low, you can appeal. Tobacco experts coming from TAPDK subject tobacco to the appraisal process again. If the missing price is given, it gives a new price. You will have to sell the tobacco for the new price. The auction method is applied in the tobacco market in America. Manufacturers list their tobacco. Buyer companies and government tobacco experts make their pricing. The company that offers the highest price buys the tobacco.

7- Are there any private establishments / companies that buy tobacco from the producer?

Tobacco companies buy tobacco from the producers they have contracted with. There TAPDK tobacco company name and the number of contracts that across Turkey on its website. Eight companies have signed contracts for 2015 tobacco in Denizli (Sunel, TTL, Alliance One, Socotab, Öz-Ege, Prestij, 4B Tobacco and Protabak tobacco companies).

8- Is there any government support, quota or any limitation in tobacco production? If so, what are they?

The state has completely withdrawn from tobacco production and purchase. Tekel was closed in 2010 and the market was completely taken over by the private sector. Currently showing tobacco companies operating in Turkey are working as a supplier of large cigarette giants. Cigarette giants such as Philip Morris, Bat, and Japanese Tobacco buy the annual amounts of oriental tobacco to be used by tobacco companies. There is no state support, quota or any limitation to tobacco production. Supply and demand balance occurs according to free market conditions.

9- Does the producer make a profit from the product it sells? If so, how is this reflected in his livelihood? If not, what are the reasons?

Of course it makes a profit. If working with family members, the labor fee is up to the producer himself. In the cost study I conducted in case of purchasing all goods and services in Denizli conditions, sales were made at a price of 12.20 TL / KG against a cost of 9.80 TL / KG in 2014 and a profit of 193.5 TL / decare was obtained. Again, in the cost study I conducted in 2015, it is expected to make a profit of 199.8 TL from a decare with 13 TL / KG (estimated price average) against a cost of 10.78 TL / KG. When he does his work himself, he can earn 700-800 TL per decare. Average size of tobacco fields in Denizli is 20 decares. A tobacconist who works with his own family members earns an income of 14 thousand TL.

There have been years when it was not profitable. Tobacco is exported. The fluctuations in exchange rates are reflected on the producer. High exchange rates are developing in favor of the producer. In addition, if the production in the Balkan countries is high, tobaccos are sold at lower prices.

10- What is the profit situation of the producer compared to the past?

It is necessary to go back to the years of Tekel. In the period when Maltepe and Samsun cigarettes were produced when the monopoly was in the market, tobacco villagers would say that the price of a large raki and 1 kg of tobacco was the same. There are no sweet profits from the past. Nowadays it is profitable compared to other agricultural products (eg cereals).

11- What are the difficulties of the tobacco producer and what are the reasons for these problems?

Labor and labor are very necessary in tobacco production. Planting, hoeing, breaking and drying of tobacco depends on time. You can do it neither too early nor too late. In order for tobacco to make money, you have to do all the transactions on time. If you have planted more tobacco than your family members can do, you will buy the labor service. In the Crimean period, for example, the wages that started to 40 TL in 2015 increased to 70 TL during the most intense period of the Crimean period. Workers and wages are troublesome during periods of busy work.

Diesel fertilizer prices are high. Cheap diesel oil should be given to farmers as well as to fishermen.

12. The quality of tobacco produced in Turkey? And according to what is the quality assessment made?

Tobaccos produced in the Aegean, Marmara and Black Sea Regions are in the class of oriental type tobaccos.

In the Eastern and Southeastern regions (Adıyaman, Malatya, Diyarbakır, Batman, Bitlis, Muş etc.) large-leaved tobacco that can be smoked alone and sold as shredded tobacco in the domestic market are produced. In addition, some tobacco companies purchase tobacco by making production contracts in this region.

13. In general, the impact of globalization on tobacco manufacturers in Turkey, how has it been?

When it comes to globalization, I understand the world capital taking over local resources. Unfortunately, this task was realized as takeover in Turkey. Tekel cigarette factories have fallen into the hands of global capital. In the 70's and 80's, Turkish addicts were gradually accustomed to American cigarettes. The smoking rates of Samsun and Maltepe cigarettes produced from 100% Turkish tobacco produced by Tekel have decreased significantly. When Tiryaki turned to American cigarettes, stocks of Turkish tobacco piled up on hand. The state brought quotas to production. The affected tobacco farmer was the peasant. 500 thousand producers in the 90s in Turkey while this number fell to 60 thousand in 2015. As a result of globalization, tobacco was affected by it as immigration. Sometimes he died in the mine in Soma, sometimes disappeared in the suburbs of the metropolitan cities.

Marketing part

1- What are the views on the situation in Turkey's tobacco market?

According to the tobacco production amounts in the world in 2013, approximately 40% of the total 7.5 million tons of tobacco produced in the world is produced in the People's Republic of China. The People's Republic of China in production is followed by Brazil, India and the USA, respectively. According to the United Nations FAO data, Turkey is situated in 10th place in the world with 90 thousand tons of tobacco production.

2- What are the purchasing conditions of tobacco companies (in general)?

- To produce the amount of production written in the contract and to sell it to the contracted company.

- To produce tobacco according to the types of recipes written in the contract.

Boxing the tobacco according to their hand and type.

- Not adding any foreign matter to tobacco (nylon, leaves, branches, etc.)

- Using chemical products licensed for tobacco for diseases and pests. etc..

3- Is there a state-backed company that purchases of tobacco in Turkey? If so, what is its name and how do you evaluate its impact on the market?

Not as 2015. The sector is completely under the control of the private sector. Until 2009, the monopoly existed on behalf of the public.

4- What are the effects of foreign companies on the domestic market?

The companies are suppliers of foreign tobacco cigarette companies in Turkey. For example, Philip Morris company divides its needs into companies and the companies buy their tobacco. Order companies determine the tobacco to be produced.

5- What are the effects of tobacco produced in Turkey to foreign markets?

Turkey serves the 25's% of the world production of oriental tobacco. Turkey is oriental-oriental tobacco exporter.

6- If tobacco is smoked, how is it today compared to the past?

When we look at the countries that export the most tobacco in the world, we see that Brazil ranks first with exports of 3.2 billion dollars. Brazil is the United States, is eyeing Zimbabwe and India, Turkey, according to data from the year 2013 439 million US dollars is located in the 8th rank with tobacco leaf exports.

Tobacco sales of $ 585 million in 1997, 530 million in 1998, and $ 392 million in 2000 were made. Long years average is around $ 400-450 million. In the past, more tobacco was sold, but the unit prices were low. Less tobacco is sold today, but unit prices are high.

7- Do we import tobacco? If so, what are the reasons?

In 2012, 81 thousand tons of tobacco was imported and 464 million $ was paid. Again in 2012, our export amount was 75 thousand tons and 427 million $.

For use in cigarette factories in Turkey Virginia, burley tobacco and we import all kinds. Turkish addicts smoke American type cigarettes, ie sauced cigarettes. The return of the smoker from the Turkish type cigarette has been prepared for many years.

8- Turkey has to compete with other countries in which conditions in the manufacturing and exporting of tobacco?

We produce oriental type tobacco. Aromatic tobaccos are sought-after products for blends. Oriental-type tobacco is produced by Balkan countries such as Albania, Bosnia-Herzegovina, Bulgaria, Montenegro, Kosovo, Macedonia and Greece. The world needs oriental tobacco cigarette companies, they provide from Turkey and Balkan countries.

In order to produce tobacco at a lower cost, oriental-type tobacco production was tried in the Turkic republics, but this study was abandoned because the chemical values ​​of tobacco could not be achieved.

9- how globalization has affected the tobacco industry in Turkey? So large firms in the tobacco market in the importation of turkey with Turkey to enter the market and changed how tobacco seeds?

With globalization, the sector has completely passed into the hands of foreigners. Production is made from low quality tobacco for middle and lower income groups to buy. Since they are sauce blends, additives are included. Continuous control of the market and production falls to the state on behalf of the Turkish smoker. Besides, because of the high prices of cigarettes, the movement of pirated and illegal cigarettes is very high and our security forces catch illegal cigarettes every day.

I do not know the amount, but tobacco seed import is not much. Imports of new varieties are completely under the permission and control of TAPDK.

Smuggled tobacco products (Especially Cigarettes)

1. Illegal tobacco is brought from Turkey to how and in what country?

It can come by land and sea and from all our neighbors.

2- In what ways is smuggled cigarettes / tobacco smuggled into the country?

Smuggled cigarettes: a product that enters the country illegally, that is, duty-free, produced by the company under normal conditions

Pirate cigarettes: Products that are not produced by the company are completely fake, whose content is unknown, and only imitated as packaging.

These products entering by sea and land are destroyed when caught.

3- How does smuggled cigarettes / tobacco affect the domestic market

Smuggled and pirated products are sold cheaply in the market. It negatively affects cigarette producers. In addition, the state cannot collect taxes. Tiryaki is also at greater risk with cigarettes of unknown origin.

4- Turkey in smuggled cigarettes / tobacco is distributed how? (How is it sold)

This is an organized business. Cigarettes that come from outside are either sold through retailers or in the open, on the counter, retail.

5- What are the effects of smoking or tobacco Illegal tobacco producers in Turkey?

It can not be said that it had a great impact as of 2015. Again tobacco produced in Turkey are introduced in proportion to cigarettes manufactured in Turkey 10-15%. They also getirmekt a tobacco tax and customs abroad homojo your cigarette factories in Turkey is not at all. Therefore, our manufacturer is the least affected.

6- Is there a fight against smuggled cigarettes? If so, in what ways and at what level of institutions?

Police, gendarmerie and coast guard forces are struggling with smuggled cigarettes. I guess that there is a struggle with the customs.

7- How has the ratio of smuggled cigarettes / tobacco changed compared to the past? (In other words, how was the effect of the smoking ban on smuggling)

Taxes on cigarettes are very high. The cost of production of cigarette production costs, for example, a cigarette pack sold to $ 10 profit 2.5-3 TI does not exceed taxes per pack, Turkey entry to the market of smuggled and pirated products as long as the higher will be more. I think that the rate of illegal and pirated products in the market is not less than 20%.

In addition, tobacco produced in the east and southeast reaches smokers as shredded tobacco. In this region, 14-15 thousand tons of tobacco is sold as shredded tobacco. It tries to get a share close to 1% in the cigarette market. As the smoking is increased, the demand for chopped tobacco increases.

8- How were the effects of globalization on tobacco smuggling? (A lot of foreign companies as a result of opening up of markets Globalization without intent Turkey has invested in this area and their impact on the illegal cigarette market has been how?)

I could not understand the question but…

Companies investing in Turkey are the world leader in the cigarette sector companies. The smuggled products wandering in our country are already cigarettes produced by world giants in other countries. These companies may prefer to protect their brands against pirated products.