A view of Kunming, the capital of Yunnan.
In China, about 1 million hectars of land are utilized to grow tobacco, 40% of which just in Yunnan. In this province, 10 billion cigarette cartons are produced every year, mainly by the two companies Hongta and Honghe.
Overall, every year the tobacco industry provides about 15 million US$ of tax revenues to the central governemt of Yunnan, which represent about 50% of the totality of tax revenues. Rural provinces such as Yunnan rely on tobacco revenues and large cities such as Kunming have expanded thanks to this industry
WHO and NGOs argue that the dependency of rural provinces on tobacco is distorted by the fact that this is the only taxed crop.
The monument to cigarettes in the Cigarette Park belonging to the Hongta Group and celebrating the history and importance of tobacco in the history of Yunnan and China. Hongta Group has also built a tobacco museum, a tobacco library, and restored a temple that gives the name to the group.
A policeman at the entrance of the Yuxi Hongta cigarette factory. The company claims that this is the world's most advanced cigarette production line, with fully automated robots and Italian rolling machines. In the Yuxi factory, more than 135 billion sticks are produced per year, covering 12% of China's total production.
The Cigarette Park belonging to the Hongta Group and celebrating the history and importance of tobacco in the history of Yunnan and China. Hongta Group has also built a tobacco museum, a tobacco library, and restored a temple that gives the name to the group. In the Yuxi factory, more than 135 billion sticks are produced per year, covering 12% of China's total production.
The Hongta Group was established in 1956 as a small scale tobacco factory and today it is the largest tobacco enterprise in China, expanding in energy and transportation, finance insurance, medicine and the light chemical industry.
Zhao Mei Yin (woman) and Cai Lia PIn (man) having their wedding pictures taken. Yuxi is the capital of tobacco, home to the largest tobacco factory of Asia, which provides 60% of the city's GDP, and surrounded by tobacco farmers. In the region, almost 70% of tax income comes from the tobacco industry.
The cigarette boutique in the Hongta Hotel, belonging to Hongta Group. Hongta was established in 1956 as a small scale tobacco factory and today it is the largest tobacco enterprise in China, expanding in energy and transportation, finance insurance, medicine and the light chemical industry.
A basketball match during lunch break in inside the campus of the Kunming Tobacco factory. Benefits and corporate welfare for company workers are such that a job in Honghe is regarded as very prestigious.
The factory belongs to Honghe tobacco company, part of the Honyun Honghe Group. With 230 billion cigarettes per year, the group represents the world's fourth-largest producer after Philip Morris International Inc., British American Tobacco PLC and Japan Tobacco Inc. in terms of production volume and annual revenues of more than 6 billion US$. The group is the result of the recent merging fo two companies, and possesses production facilities in Yunnan and the northwestern Xinjiang region.
China's State Tobacco Monopoly Administration is encouraging tobacco companies to merge and benefit from the economy of scale. The industry's umbrella state-owned company, China National Tobacco Corp., is planning to form 10 major tobacco companies through mergers.
Honghe controls 60% of Yunnan's cigarette market. An anonymous informant affirms that the company recently introduced Jia Zi and Win ("Kiss") to attract more female consumers. WHO claims that saturation is almost being reached regarding male potential smokers, while female tobacco consumers are still very low.
The Hongta cigarette factory production line in Yuxi. The company claims that this is the world's most advanced cigarette production line, with fully automated robots and Italian rolling machines. In the Yuxi factory, more than 135 billion sticks are produced per year, covering 12% of China's total production.
Morning gymnastics session for retired female workers inside the campus of the Kunming Tobacco factory. Benefits and corporate welfare for company workers are such that a job in Honghe is regarded as very prestigious.
The factory belongs to Honghe tobacco company, part of the Honyun Honghe Group. With 230 billion cigarettes per year, the group represents the world's fourth-largest producer after Philip Morris International Inc., British American Tobacco PLC and Japan Tobacco Inc. in terms of production volume and annual revenues of more than 6 billion US$. The group is the result of the recent merging fo two companies, and possesses production facilities in Yunnan and the northwestern Xinjiang region.
China's State Tobacco Monopoly Administration is encouraging tobacco companies to merge and benefit from the economy of scale. The industry's umbrella state-owned company, China National Tobacco Corp., is planning to form 10 major tobacco companies through mergers.
Honghe controls 60% of Yunnan's cigarette market. An anonymous informant affirms that the company recently introduced Jia Zi and Win ("Kiss") to attract more female consumers. WHO claims that saturation is almost being reached regarding male potential smokers, while female tobacco consumers are still very low.
The Philip Morris China office, located on the 17th floor of The Exchange Building, in the modern SoHo neighbour.
According to government figures, imported brands account for 4% of cigarettes sales, but these data do not take into account smuggled cigarettes. To make up for loses at home, Western cigarette manufacturers have moved aggressively into markets overseas.
The Chinese National Tobacco Corporation (CNTC) is the world's largest tobacco company. A state monopoly, it employs 520,000 workers, produces 500 brands and has 183 factories, 150 tobacco drying plants, and 30 research institutes. A total of ten million people (tobacco company workers, farmers and shop owners) make a living in China's mostly-state-run tobacco industry.
CNTC has set up more 10 joint ventures with foreign companies such as BAT, R.J. Reynolds and Philip Morris. The R.J. Reynolds-CNTC factory in Xiamen, produces 2.5 million Camels, Winstons and Golden Bridges a day. The Philip Morris-CNTC joint venture produce cigarettes in Shanghai, Ningbo and Tianjin.British American Tobacco makes cigarettes in Sichuan. In September 2004, Philip Morris received permission to start making Marlboros in China. They will be made with a joint venture with the state-run Longyan Cigarette factory in Fujian.
Philip Morris, BAT and RJ Reynolds all reportedly spend around $20 million annually for cigarette advertising. Although cigarette advertising has been prohibited since 1984 in China, foreign companies get around the rules by prominently displaying their logos and brand names without showing cigarettes or people smoking.
In the plant breeding facilieties of the College of Tobacco Science, Yunnan Agricultural University, inaugurated in 1996. In China, about 1 million hectars of land are utilized to grow tobacco, 40% of which just in Yunnan. Overall, every year the tobacco industry provides about 60 million US$ of tax revenues to the central governemt of China, For this reason, the government funds research on tobacco, mainly to produce pest-resistant varieties able to give a higher yeld.
Tobacco stems are often used as fuel for heating and cooking, but health official have doubts about their health effects.
Wang Zhi Hui, a tobacco grower.
Xundian is one of the most poor rural areas in Yunnan. Land is more hilly and the soil less fertile. In this village reside some 180 people and almost all of them grow tobacco. The tobacco industry has been largely responsible for the economic growth of the province but it has failed to spread wealth to the rural area where around 87 percent of the province
The village of Hoi Xi Xan. Here, like in most of the villages of the area, tobacco is the mail cash crop. The central government encourages farmers to plant tobacco by providing loans and financial support in the form of pesticides and coal for the curing process. Production volume and price of tobacco are determined by the central government. NGOs claim that this imposed mechanism only favours tobacco companies and keep farmers in a tobacco-dependent economic condition. The tobacco industry has been largely responsible for the economic growth of the province but it has failed to spread wealth to the rural area where around 87 percent of the province
Private land rented out to Hongta Group. Farmers living in the periphery of Yuxi rent their land to local cigarette company, for an yearly price of 1300 yuan per mu; most of them claim that this is more than what they would make but cultivating the land themselves. Workers are then hjired seasonally, usually from poorer regions of China. In the winter, the land is left unused, instead of being utilized for the winter crops. In a moment of food scarcity and insecurity, uncultivated land can be seen as unreasonable.
A tobacco farmer with a bucket containing chemical fertilizers. She lives in Hoi Xi Xan village, where most of the farmers grow tobacco. The central government encourages farmers to plant tobacco by providing loans and financial support in the form of pesticides and coal for the curing process. The government gives 0,5 yuan per kg of coal, for curing. She uses up to 2000 kg of coal per year.
Production volume and price of tobacco are determined by the central government. NGOs claim that this imposed mechanism only favours tobacco companies and keep farmers in a tobacco-dependent economic condition. The tobacco industry has been largely responsible for the economic growth of the province but it has failed to spread wealth to the rural area where around 87 percent of the province
Hu Qian Lan, 87, a tobacco producer. In this village, 80% of the families grow and depend on tobacco. The central government encourages farmers to plant tobacco by providing loans and financial support in the form of pesticides and coal for the curing proces. Production volume and price of tobacco are determined by the central government. NGOs claim that this imposed mechanism only favours tobacco companies and keep farmers in a tobacco-dependent economic condition. In China, about 1 million hectars of land are utilized to grow tobacco, 40% of which just in Yunnan.
A man selling manure for organic fertilization. Intensive agriculture has a strong impact on ecosystems and can not be sustained with organic fertilizers. Tobacco is considered the most intensive of all crops, requiring 16 different application of chemicals to control pests and to increase production.
A smoker in Yuxi. Smoking is a social habit in China and expensive cigarettes (up to 20US$ per pack) are usually given as presents to friends and colleagues. About 50% of men smoke in China, with 1 million deaths per year linked to tobacco use.
Dr. Sarah England, head of the Tobacco Free Initiative of WHO, in her Beijing office. Dr. England points out that tax revenues on agriculture are only on tobacco. This creates a distorted view on the economic role of tobacco. Indeed, in rural areas, where industries and other sectors are not developped, this is the only source of revenues as it is the sole taxed industry. The economic dependency of certain provinces on tobacco might be overcome with transfers from richer areas. WHO has a difficult role in China, and its activities need to be in line with China's policies if they want to keep their offices open.
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