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  • Cuba's economy and smoking Bans

    By Marc Frank

    HAVANA, June 21 (Reuters) - Global economic woes and the worldwide spread of smoking bans are taking their toll on Cuba?s famous cigar industry, with the just-completed harvest of the country?s finest tobacco down 14 percent over 2009, local media said on Monday.

    In westernmost Pinar del Rio, home of Cuba?s most famous tobacco, the harvest came in at 22.4 million leaves, down from 26 million in 2009, according to Guerrillero, the province?s Communist party weekly.

    The area?s tobacco is used as wrapper leaf and part of the filling in Cuba?s prized cigar brands, including Cohiba, Montecristo, Trinidad and Partagas.

    "There was a reduction in planting due to limitations in resources caused by the economic crisis," the weekly said.

    Cuba?s premium cigars dominate the world market with 70 percent of sales.

    That jealously guarded market share excludes the United States, where Cuba?s cigars are banned under the 48-year-old U.S. trade embargo against the communist-led island.

    But the industry has fallen on hard times in recent years, with production of cigars for export down from 217 million in 2006, to 123 million in 2007 and just 73 million last year as the business drew on its stored inventory, the government reported this month.

    Cash-strapped Cuba cut the amount of land devoted to growing its famous tobacco by more than 30 percent last year.

    Sales from cigar exports fell to $218 million in 2009, down from $243 million in 2008.

    In contrast, domestic demand for lower-quality cigars, which cost as little as a few cents and are made from tobacco grown elsewhere in the country, showed no sign of slowing.

    About 300 million were produced last year, compared with 278 million in 2008, the government said.

    The exclusive distributor of Cuban cigars, Habanos S.A., a joint venture between Cuba and British tobacco giant Imperial Tobacco Group Plc, was not immediately available for comment.

    Some 200,000 private farmers and family members depend on growing and curing the precious leaf under contract with the government. Tens of thousands of workers earn their living hand rolling the crop into the famous "Habanos" or "Puros" for export.

  • #2
    There's nothing for it boys, we've just got to get our heads down and smoke more.

    It's for the Cubans you understand.

    I don't want to see any of you without a fine Cuban cigar in your mouth and any time, just think of those poor babies with nothing to eat and smoke up!!
    Nic
    Editor UK Cigar Scene Magazine

    Comment


    • #3
      Please Sir

      Won't you buy my cigars

      Look ToeTo nobody wants our fine Cuban cigars !
      This will cripple all involved in the cigar industry!
      And in turn jack the prices up.
      Well my fellow B/SOTL we are becoming dinosaurs .
      A sad day for us aficionado's

      Comment


      • #4
        Or it could mean lower prices as people need to be attracted. Depends what way you look at it from.

        Comment


        • #5
          Yeh like that's going to happen. Haven't you heard about the Behike?

          It's actually going the other way. Look at the stats. Machine cheap cigars at the same level, expensive hand made cigars down so focus on the top cigars smoked by people who want and can afford the best, result - Behike!!
          Nic
          Editor UK Cigar Scene Magazine

          Comment


          • #6
            i can't even afford the ring on the behike...

            Comment


            • #7
              Get married

              Originally posted by tupacboy View Post
              i can't even afford the ring on the behike...
              And you won't be able to afford to look at them ROTF

              Comment


              • #8
                A nice article based on these facts and figures from the Guardian today: http://www.guardian.co.uk/commentisf...r-exports-drop
                "The socialism I believe in is everyone working for each other, everyone having a share of the rewards. It's the way I see football, the way I see life"
                Bill Shankly

                Comment


                • #9
                  They need to lower prices (significantly) so 'I' can buy more and boost their economy

                  Comment


                  • #10
                    Originally posted by nicwing View Post
                    There's nothing for it boys, we've just got to get our heads down and smoke more.

                    It's for the Cubans you understand.

                    I don't want to see any of you without a fine Cuban cigar in your mouth and any time, just think of those poor babies with nothing to eat and smoke up!!
                    Trying my best Nic.... trying my best!

                    Comment


                    • #11
                      That does not bode well--the US really ought to shift its policy, but that is obviously a low priority these days.

                      Comment


                      • #12
                        Indeed, although interestingly surveys in recent years show a significant shift in US public opinion, with the majority now supporting normalisation of relations and the lifting of the trade embargo. Perhaps the most interesting element of this is that apparently the majority the younger generations of cubans in the US are now in favour of ending the embargo/travel restrictions. Traditionally of course the 'cuban vote' in key electoral states like Florida favoured hard-line Republican anti-Castro positions and this was a huge factor in political decision making in Washinton (as is the 'Jewish vote' in relation to Israel). Now this appears to be breaking down, but it has yet to translate into any meaningful policy shift from Obama.

                        Of course, while the lifting on travel in particular would be a huge boost to the Cuban eceonomy in terms of expected large numbers of US tourists who would then travel there, it may not be of immediate help to the cigar industry due to all the legal issues surrounding the various rival brand names which would no doubt last for many years and cost a lot of money in legal fees etc to sort out...
                        "The socialism I believe in is everyone working for each other, everyone having a share of the rewards. It's the way I see football, the way I see life"
                        Bill Shankly

                        Comment


                        • #13
                          Be careful what you wish for. Lifting the embargo is unlikely to have a positive result on the price/quality of Cubans.

                          Originally posted by Soulmanure View Post
                          That does not bode well--the US really ought to shift its policy, but that is obviously a low priority these days.
                          Originally posted by Simon Bolivar
                          Little medical correction there Steve, you will surely die...but not from smoking these

                          Originally posted by Ryan
                          I think that's for lighting electronic cigarettes

                          Comment


                          • #14
                            Originally posted by monkey66 View Post
                            Be careful what you wish for. Lifting the embargo is unlikely to have a positive result on the price/quality of Cubans.
                            Have faith Monkey. I think once our cousins can legally smoke Cubans they'll quickly separate the wheat from the chaff and through demand and their customary wholesale/retail price competitiveness, get prices back to a realistic level.
                            If you want to, you can.
                            And, if you can, you must!

                            Comment


                            • #15
                              Re: Cuba's economy and smoking Bans

                              It really could be a lot worse than a 14% drop. I suspect it's more about the economic situation than smoking laws considering that Spain is such a large consumer, and their economy doesn't exactly look robust at the moment.

                              Comment

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