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Frequently Asked Questions

 
  • What are the floor prices of each type of tobacco?

  • The following are the minimum floor prices of each type of tobacco for trading year 2009-2010:

  • TOBACCO TYPES (CY 2009-2011)
    GRADE VIRGINIA GRADE BURLEY GRADE NATIVE/DARK
    AA 66.00     HIGH 48.50
    A 64.00 A 43.50 M-1 39.00
    B 62.00 B 41.50 M-2 31.50
    C 60.00 C 39.50 L-1 24.00
    D 55.00 D 35.00 L-2 14.50
    E 54.00 E 34.00    
    F-1 50.00 FF 26.50    
    F-2 47.00        
    R 28.00 R 18.00    
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  • What are the types of tobacco grown in the Philippines?

  • To date, tobacco is grown in 23 provinces, covering approximately 30,352 hectares. The industry covers four (4) types of locally-grown tobacco, namely: virginia, burley and Turkish tobaccos, referred to as aromatic tobacco, and native tobacco.
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  • What are the tobacco growing provinces in the Philippines?

  • Different tobacco types are grown in the different tobacco producing province. Virginia tobacco is grwn in Region I, particularly, Ilocos Norte, Ilocos Sur, Abra and La Union. Burley tobacco is also grown in Region I in Pangasinan, La Union, Abra; Isabela and Cagayan in Region II; Tarlac in Region III; and Occ. Mindoro in Region IV. Native/Dark tobacco is grown in Pangasinan and La Union in Region I; Cagayan, Isabela, Nueva Vizcaya and Quirinio in Region II; the Visayan provinces of Capiz, Iloilo, Cebu, Negros Oriental and Leyte; and in the Mindanao provinces of Zamboanga del Sur, Bukidnon, Misamis Oriental, North Cotabato and Maguindanao.
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  • Where is Virginia tobacco largely grown?

  • Virginia tobacco is the most dominant tobacco type and consitutes 58% of the tobacco area, equivalent to 23.347 hectares, 52% of the total tobacco farmers or 32,352, and is commercially grown in the four Ilocos provinces of Abra, Ilocos Norte, Ilocos Sur (60%) and La Union (17%).
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  • Where is Burley tobacco largely grown?

  • Burley tobacco constitutes 18% of the total tobacco area equivalent to 7,198 hectares, and 18% of the total tobacco farmers or 11,336. It is commercially grown in the provinces of Pangasinan (51%), Tarlac (16%), Nueva Ecija and Occidental Mindoro.
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  • Where is Native tobacco largely grown?

  • Native tobacco constitutes 24% of the total tobacco area equivalent to 9,752 hectares and 30% of the total tobacco farmers or 18,729. It is commercially grown in the provinces of Cagayan, Isabela, Nueva Vizcaya, Quirino, Ifugao, Mountain Province, Iloilo, Leyte, Negros Oriental, Capiz, Cebu, Misamis Oriental, Zamboanga del Sur, North Cotabato, South Cotabato, Maguindanao, Sarangani, Bukidnon and Davao del Sur.
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  • What is the average volume of production for the different types of tobacco for the last three years?

  • The average volume of production fo the yaer 2009 for Virginia is 34-M kilograms or 59% ot the total volume, Burley is 14-M kilograms or 24% of the total, and Native is 10-M kilograms or 17%, for a total of 58-M kilograms.
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  • What is the average yield of production per hectare for the different tobacco types?

  • The average yield of cured tobacco per hectare, applying the prescribed technology, is as follows
    • Virginia - 2,000 kilograms
    • Burley - 2,200 kilograms
    • Native - 1,653 kilograms
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  • What is the percentage distribution of domestic and foreign market of aromatic leaf tobacco?

  • The overall market for aromatic leaf tobacco, virginia and burley, is 75% for domestic and 22% for foreign. The overall market for native tobacco is 30% for domestic and 70% for foreign.
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  • Who are the principal buyers of aromatic tobacco in the Philippines?

  • The domestic market for aromatic leaf tobacco is dominated by Fortune Tobacco Corporation and La Suerte Cigar and Cigarette Factory.

    The domestic market for native tobacco includes the manufacturers of cigar and native/dark cigarettes.
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  • To what countries does the Philippines export its tobacco?

  • The foreign market of aromatic leaf tobacco includes Germany, Hongkong, Singapore, USA, Russia, Japan and others.

    The foreign market for native tobacco includes Japan, Spain, France, Tunisia, Dominican Republic, Belgium and others.
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  • What is the annual average revenue generated by the tobacco industry?

  • Tobacco is the only cash crop, which contributes an enormous sum in the family income of the farmers particularly those in North.

    As one of the high value crops, the tobacco industry has been generating an annual average revenue of PhP31.8-billion for the government during the past three (3) years, that is, the 2006 to 2008 seasons. A sizable fraction of this is given back to the farmers in accordance with RA 7171.

    The sources and amount of revenues are as follows:

    • Excise taxes from cigarettes/cigars (75%) - PhP 25.5-B
    • Corporate Taxes (20%) - PhP 4.1-B
    • Duties - (5%) - PhP 2.1-B
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  • What is the employment profile of the tobacco industry?

  • The tobacco industry provides direct and primary source of livelihood to 43,960 farmers and about 300,00 other members of their families and about 1.56-M other industry workers and dependents, summing up to an estimated 1.93-M Filipinos.
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