Tobacco industry in Argentina
Encyclopedia
The tobacco industry of Argentina produced 157,294 tonnes of tobacco
in the 2003/2004 harvest, most of which (93,327 tonnes) was exported. The planted area was 831.75 km², of which 776 were harvested.
The tobacco industry is dominated by two transnational companies: Massalin Particulares S.A. (a subsidiary of Philip Morris International
, which sells the Marlboro brand, and which in turn is associated with Tabacos Norte S.A.) and Nobleza Piccardo (a subsidiary of British American Tobacco
, which sells international brands such as Lucky Strike
, Viceroy
and Camel
, as well as national ones like Jockey and Derby).
Tobacco producers are concentrated in the north of the country. The provinces of Jujuy
and Salta
(in the north-west
), and Misiones
(in the north-eastern Mesopotamia
), are the leading ones, with over 45,000 tonnes/year each. The other tobacco-producing provinces are Tucumán
, Corrientes
, Chaco
and Catamarca
.
Tobacco plays an important role in the economy of the producing areas, which are comparatively poor provinces. The Argentine tobacco industry employs 500,000 people, about half of them directly involved in the planting and harvesting, only about 2% in the manufacturing of the derived products, and the rest in distribution and sales. Therefore, despite the fact that the consequences of smoking]are a major health issue in Argentina
, the national government supports the producers by means of a Tobacco Special Fund (Fondo Especial del Tabaco, FET), which consists in a subsidy
plus easier access to credit
in order to modernize the industry.
Tobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...
in the 2003/2004 harvest, most of which (93,327 tonnes) was exported. The planted area was 831.75 km², of which 776 were harvested.
The tobacco industry is dominated by two transnational companies: Massalin Particulares S.A. (a subsidiary of Philip Morris International
Philip Morris International
Philip Morris International is an international tobacco company, with products sold in over 160 countries. In 2007, it held a 15.6% share of the international cigarette market outside of the USA and reported revenues net of excise taxes of $22.8 billion and operating income of $8.9 billion.Until...
, which sells the Marlboro brand, and which in turn is associated with Tabacos Norte S.A.) and Nobleza Piccardo (a subsidiary of British American Tobacco
British American Tobacco
British American Tobacco p.l.c. is a global tobacco company headquartered in London, United Kingdom. It is the world’s second largest quoted tobacco company by global market share , with a leading position in more than 50 countries and a presence in more than 180 countries...
, which sells international brands such as Lucky Strike
Lucky Strike
Lucky Strike is a brand of cigarette owned by the R.J. Reynolds Tobacco Company and British American Tobacco groups. Often referred to as "Luckies", Lucky Strike was the top selling cigarette in the United States during the 1930s.- History :...
, Viceroy
Viceroy (cigarette)
Viceroy cigarettes are made by Brown & Williamson, which was owned by British American Tobacco, and, since 2004, by Reynolds American Inc., a joint venture between the U.S. branch of British American Tobacco and R.J. Reynolds Tobacco Company....
and Camel
Camel (cigarette)
Camel is a brand of cigarettes that was introduced by American company R.J. Reynolds Tobacco in the summer of 1913. Most current Camel cigarettes contain a blend of Turkish tobacco and Virginia tobacco. Early in 2008 the blend was changed as was the package design.-History:In 1913, R.J...
, as well as national ones like Jockey and Derby).
Tobacco producers are concentrated in the north of the country. The provinces of Jujuy
Jujuy Province
Jujuy is a province of Argentina, located in the extreme northwest of the country, at the borders with Chile and Bolivia. The only neighboring Argentine province is Salta to the east and south.-History:...
and Salta
Salta Province
Salta is a province of Argentina, located in the northwest of the country. Neighboring provinces are from the east clockwise Formosa, Chaco, Santiago del Estero, Tucumán and Catamarca. It also surrounds Jujuy...
(in the north-west
Argentine Northwest
The Argentine Northwest is a region of Argentina composed by the provinces of Catamarca, Jujuy, Salta, Santiago del Estero and Tucumán.-Geography:The region had 5 different biomes:* Sub-Andean humid Sierras of the east...
), and Misiones
Misiones Province
Misiones is one of the 23 provinces of Argentina, located in the northeastern corner of the country in the Mesopotamiсa region. It is surrounded by Paraguay to the northwest, Brazil to the north, east and south, and Corrientes Province of Argentina to the southwest.- History :The province was...
(in the north-eastern Mesopotamia
Mesopotamia, Argentina
La Mesopotamia, Región Mesopotámica is the humid and verdant area of north-east Argentina, comprising the provinces of Misiones, Entre Ríos and Corrientes. The region called Litoral consists of the Mesopotamia and the provinces of Chaco, Formosa and Santa Fe...
), are the leading ones, with over 45,000 tonnes/year each. The other tobacco-producing provinces are Tucumán
Tucumán Province
Tucumán is the most densely populated, and the smallest by land area, of the provinces of Argentina. Located in the northwest of the country, the capital is San Miguel de Tucumán, often shortened to Tucumán. Neighboring provinces are, clockwise from the north: Salta, Santiago del Estero and...
, Corrientes
Corrientes Province
Corrientes is a province in northeast Argentina, in the Mesopotamia region. It is surrounded by : Paraguay, the province of Misiones, Brazil, Uruguay, and the provinces of Entre Rios, Santa Fe and Chaco.-History:...
, Chaco
Chaco Province
Chaco is an Argentine province located in the north of the country, near the border with Paraguay. Its capital is Resistencia on the Paraná River opposite the city of Corrientes...
and Catamarca
Catamarca Province
Catamarca is a province of Argentina, located in the northwest of the country. The province has a population of 334,568 as per the , and covers an area of 102,602 km². Its literacy rate is 95.5%. Neighbouring provinces are : Salta, Tucumán, Santiago del Estero, Córdoba, and La Rioja...
.
Tobacco plays an important role in the economy of the producing areas, which are comparatively poor provinces. The Argentine tobacco industry employs 500,000 people, about half of them directly involved in the planting and harvesting, only about 2% in the manufacturing of the derived products, and the rest in distribution and sales. Therefore, despite the fact that the consequences of smoking]are a major health issue in Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
, the national government supports the producers by means of a Tobacco Special Fund (Fondo Especial del Tabaco, FET), which consists in a subsidy
Subsidy
A subsidy is an assistance paid to a business or economic sector. Most subsidies are made by the government to producers or distributors in an industry to prevent the decline of that industry or an increase in the prices of its products or simply to encourage it to hire more labor A subsidy (also...
plus easier access to credit
Credit (finance)
Credit is the trust which allows one party to provide resources to another party where that second party does not reimburse the first party immediately , but instead arranges either to repay or return those resources at a later date. The resources provided may be financial Credit is the trust...
in order to modernize the industry.