Tobacco

Title

Tobacco

Language

English

Source

The American Chamber of Commerce Journal Volume XXIV (Issue No. 8) August 1948

Year

1948

Rights

In Copyright - Educational Use Permitted

Fulltext

August, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 301 demand for rope and twine; however, confronted with the heavy SCAP buying, the United States market had main tained an outwardly steady appearance—but with no buy ing interest. Just as soon as sellers began to press sales and reduce prices, United States consumers withdrew com pletely and prices broke sharply. Continued selling pres sure and a complete lack of interest drove prices down ap proximately PIO to P12 per picul for Davao grades, and P5 to P6 per picul for Non-Davao grades. Spot offerings in New York by overloaded consumers had an additional disturbing influence. At the time of writing the market is still weak, with no demand whatsoever. The following comparisons will give the reader some idea of the severity of the decline during the past 30 days: Price Price Decline De%ne Da/I — per picul basis on 6/16 7/15 Picul loose................................. P63.50 P52.50 PH 50 18% Da/JI................................... 62. 50. 12. 19 Da G.................................... Non-Davao/I/picul basis 53.50 43.50 10. 19 loose................................. P59. P53. P 6. 10% Non-Davao /G.................... 42. 38. 4. 10 Non-Davao K................... 29. 23. 6. 21 On the new basis of values, United States buyers continue apathetic and there is no sign of SCAP coming in this month, although it is possible they will buy during August. European demand continues to be very limited due to exchange difficulties. The local statistical position is healthy, and shipments for the first half of the year were in excess of production. There is little doubt that once the present inventory position of United States manufacturers is adjusted to present consumption levels, demand will pick up. Pressings for the month of June were 49,607 bales—a decrease of 9,233 bales, as compared with May, and the lowest figure since January, 1947. Non-Davao, 31,942 bales—down 4,740 bales; and Davao, 17,6(j5 bales—down 4,493 bales. The total pressings for the first half of 1948 were 362,246 bales, as compared with 381,584 bales for the first half of 1947. Tobacco By the Conde de Churruca President, Manila Tobacco Association ON July 22, Secretary of Industry and Commerce Placido Mapa invited leading representatives of the tobacco industry in the Philippines to his office with the object of establishing a basis for the rehabilitation of the industry. Besides Secretary Mapa, the Collector of Internal Revenue, Mr. Meer, the Director of Commerce, Mr. Mendrnueto, the Manager of the National Tobacco Corpora tion, Mr. Perez de Tagle, and the President of the Manila Tobacco Association were present; Congressman Do mingo Paguirigan of Isabela, and the Governor of the same Province, the Hon. Sil vino Gumpal, also came to confer with the Secretary. Representatives of practically every •important factory and leaf-tobacco dealer were present at the conference. The keen spirit of concern demonstrated by Secretary Mapa, and the genuine desire to cooperate with the Govern ment shown by the tobacco men, were the features of the conference. The problems taken up were: (1) The possibility of reestablishing the export trade in cigars. (2) The necessity of producing bigger crops and reducing prices to promote the export of leaf tobacco. Complete Automotive REPLACEMENT PARTS Factory Specifications JB AUTOLITE CARTER Batteries Generators Starters Ignition Parts Wire and Cable Carburators Repair Kits Gasket Sets Fuel Filters Parts — ACCESSORIES - SPECIALTY EQUIPMENT CORP. 223 13th ST., PORT AREA, MANILA TEL. 2-63-18 GENERAL MOTORS DIESELS SALES AND SERVICE TOUGH construe pendable, low-cost power. GM diesels, be cause of their economical and dependable opera tion, arc being used more and more in construc tion and industrial applications. Let us give you the facts about these hard-working, husky GM Diesel. Our General Motors Diesel Engine Department is equipped a complete with factory testing facilities and itock of factory guaranteed parts. PHILIPPINE ENGINEERING CORPORATION 936 RAON, MANILA TEL. 2-81-97 Branches: GM GENERAL MOTORS DIESEL POWER Cebu, Iloilo. Cotabato 302 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1948 (3) Ways and means of competing with imported cigarettes, now consumed in the proportion of 10 to 2 against the local brands. The first problem hinges on the high cost of leaf to bacco and the high cost of labor. Only big crops will lower the first, and the use of machinery the second. Most of the manufacturers are reluctant to use mach ines because they want to avoid any measure which might go against the workers’ interests. The principal aim in rehabilitating the business is to help the farmers and work ers, and the use of machines might defeat this aim. We believe it wiser to wait until the cost of living is sufficiently reduced or the prices obtainable for cigars are sufficiently increased, than to adopt a radical measure which might mean difficulties for our workers. The only alternative would be to sell only high grade cigars which could compete with the best foreign products. Install Ca ler Today! cold-’free during Have a You are assured of yearround ventilation when you install a CARRIER Room Air Conditioner. Just as CAR RIER gave you cool comfort through the hottest days, CARRIER will keep you free from colds these rainy days. CARRIER lowers humidity moisture is extracted, leav ing you fresh and invigorated with filtered, dry air. Make your home and office sneezefree and the rainy season. CARRIER installed today— just phone or write us and a CARRIER man will call on you. THE EDWARD J. NELL COMPANY 1450 ARLEGUI STREET TEL 2-70-15 This is easy to say, but hard to carry out, although the writer doesn’t deem it impossible. It is hard, especially after so many years of advertising Manila cigars as among the cheapest. The Government, through its consulates and agencies, and through a little judicious advertising, could help a lot to promote the new idea, and perhaps in the long run it would work out, if only up to a point. The thing is to get it started. The second problem is easier to solve, as the last three years have been exceptionally bad as weather goes, and about half of the three crops were lost. But even though we may expect larger crops in the near future, they will probably never equal the pre-war crops, the principal reason being that in each new generation the number of farmers becomes less as the young people abandon the land for town-life. The third and last problem is also very difficult as the tastes and habits of the smoking public are already established. Our only chance is to grow Virginia leaf tobacco ourselves, and to produce a type of cigarette ac ceptable to the public. It can be done, and the National Tobacco Corporation has made encouraging progress in research and experimenta tion which will be extended next year in helping private enterprise expand production of this leaf tobacco. Of course, this will take time, but it may, in the end, become a very important source of business for the Islands, as besides the local market there is an unlimited field in China and other Far Eastern countries, whether for leaf tobacco or manufactured cigarettes. In general, even if the prospects are not brilliant for the near future, we are justified in hoping that our tobacco industry will regain its place, if we learn how to adapt the old pattern to the conditions and demands of the present day. SUPERIOR GAS & EQUIPMENT CO. MANUFACTURERS AND MANUFACTURERS’ REPRESENTATIVES Producers of: SUGECO Highest Purity OXYGEN and ACETYLENE GASES “SUPER FLAME” BOTTLED & TANKED GAS For all cooking purposes CARBON DIOXIDE in liquid and solid form For FIRE EXTINGUISHERS, BOTTLED DRINKS and FROZEN FOOD PRESERVATION HYDROGEN GAS For Balloons Distributors of: NATIONAL CARBIDE WELDING EQUIPMENT & SUPPLIES TAPPAN GAS STOVES with complete Installation & Service Facilities Tel. 6-88-02

pages

301-302

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