September 20, 2005
The tobacco industry faces unprecedented change as the quota and price support program is replaced by free-market policies. The impacts of the Fair and Equitable Tobacco Reform Act of 2004 affect all facets of the tobacco industry. How will the industry adapt to the new environment? In September, USDA's Economic Research Service and Farm Foundation are sponsoring a 1-day workshop that will address these and other issues.
The workshop will bring together researchers, and representatives from leaf dealers, manufacturers, trade associations, government, cooperatives, and higher education. Participants will be encouraged to share insights and provide new ideas for future research. Some specific issues addressed will include:
Impacts on Producers, Quota Holders, and Markets:
How are producers adjusting to reduced government intervention in the post-buyout environment? Which producers have left tobacco production and which are increasing acreage? Are new entrants a significant factor? How is tobacco production shifting geographically? What are the supply and use prospects for the near future? What are market information needs under a free market?
Trade:
How are lower prices resulting from eliminating quota rents, and price supports, combined with increasing efficiencies, going to affect the competitiveness of
U.S.
tobacco on the world market? Will domestic leaf regain some of the domestic market lost to imported leaf?
Policy:
Where is tobacco policy going from here? Will the Food and Drug Administration be involved in the future? Will the current policy environment have the longevity of the tobacco program?
Tobacco Institutions:
How are institutions such as cooperatives and associations responding to the new regulatory environment? What are the effects of changes on the level of data collection and dissemination that has been provided to the Federal Government? Is there a role for noncontract sales?
Leaf Dealers and Manufacturers:
How are manufacturers and leaf dealers changing procurement policies? What are the impacts of the assessments on manufacturers?
The goal of this workshop is to facilitate an open exchange of ideas as the tobacco industry enters a new era.
If you have questions about the workshop, please contact Pam Weaver by email at pweaver@ers.usda.gov
or by phone at (202) 694-5254.
|
