Tobacco Agriculture: Some Facts

Tobacco Agriculture: Some Facts
The tobacco industry estimates that globally, 33 million people are engaged in tobacco
cultivation. However, this figure includes not only farmers who rely entirely on tobacco, but also
farmers who grow other crops besides tobacco, seasonal laborers, family members and other
part-time workers. Of these 33 million, approximately 15 million are in China and 3.5 million in
India.
Although tobacco is grown in more than 100 countries, just four countries (Brazil, China, India
and the United States) account for two-thirds of total global production and only two countries,
Malawi and Zimbabwe, are significantly dependent on export earnings from tobacco.1 Out of the
141 countries that export tobacco, only 18 derive more than one percent of their total export
earnings from tobacco. In only four of those 18 countries do tobacco exports account for more
than five percent of total export earnings.2
In some countries, tobacco is grown on small family farms that contract with large multinational
companies. In others, tobacco is grown on large plantations and sold at auction. Whatever
system is used, the profits from tobacco cultivation accrue largely to large multinational
companies. Three U.S.-based companies dominate the global leaf trade – Universal, Dimon and
Standard Commercial. The leaf companies – which select, purchase, process and sell tobacco
– work with the multinational cigarette companies to determine where, how much and what kind
of tobacco will be produced.3 As multinational cigarette companies increase their overseas
manufacturing capacity, the leaf dealers have followed, setting up leaf procurement and
processing facilities near the new factories. Today, they operate in dozens of countries on five
different continents. In a constant drive to increase profits, these companies regularly shift
production from country to country regardless of the impact on local growers or economies