Required Report - public distribution

**Date:** 4/29/2004

**GAIN Report Number:** TU4014

TU4014

**Turkey**

**Tobacco and Products**

**Annual Report**

**2004**

**Approved by:**

![](media/image1.wmf)Robert Hanson, Acting Agricultural Counselor

U.S. Embassy

**Prepared by:**

Ibrahim Sirtioglu, Agricultural Marketing Specialist

**Report Highlights:**

MY 2004 total tobacco production is estimated to be about 153,750 MT.
Oriental tobacco production is decreasing while non-oriental tobacco
production shows a modest increase.

Low export prices led to increased oriental tobacco exports that reached
107,870 MT in 2003. Non-oriental tobacco imports continue to increase
due to increased demand for blended cigarettes. Imports from the United
States continue to decline due to high cost. The GOT canceled Tekel's
cigarette production unit privatization tender due to low bidding
prices. Tekel is expected to announce a new tender in 2004.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Ankara \[TU1\]

\[TU\]

Table of Contents

[**Executive Summary 3**](#executive-summary)

[Production 3](#production)

[Consumption 4](#consumption)

[Trade 4](#trade)

[Stocks 5](#stocks)

[Policy 5](#policy)

[Marketing 5](#marketing)

[Marketing Subcategory 6](#marketing-subcategory)

[Cigarette Price 6](#cigarette-price)

# Executive Summary

The GOT continues to strictly control oriental tobacco production in
order to solve the expensive problem of overproduction and burdensome
stocks. The new law that requires pre-season contracts for production
effectively reduced all over-production of oriental tobacco in Turkey.
MY 2004 total un-manufactured tobacco production is now estimated at
about 153,750 MT (farm weight) of which 145,450 MT is oriental tobacco,
5,700 MT flue-cured and 2,600 MT burley. Tobacco production is expected
to decline in coming years as incentives to produce alternative crops
--and disincentives to produce tobacco- become well established.

Oriental tobacco consumption declined in 2003 while non-oriental tobacco
consumption increased. Increased consumption of blended cigarettes was
the reason for the change.

Turkish oriental tobacco exports increased in MY 2003 to 107,870 MT due
to low export prices. The United States continued to be the leading
importing country with 33,990 MT followed by the EU with 32,090 MT and
FSU with 15,340 MT. Turkey did not export non-oriental tobacco in 2003.

Total imports of non-oriental tobacco in 2003 reached 43,390 MT, up from
37,280 MT last year. Existing data do not distinguish types of tobacco.
Imports are estimated at about 28,000 MT for flue-cured and 15,390 MT
for burley. The United States continues to be the leading supplier for
non-oriental tobacco with 12,140 MT followed by Brazil (11,130 MT) and
Argentina (4,650 MT). Turkey also imported 5,550 MT of scrap tobacco in
2003. Brazil was the leading supplier exporting 2,090 MT followed by
Zimbabwe (1,120 MT). Homogenized tobacco imports during the same period
have reached 15,180 MT. The United States was the leading supplier with
10,048 MT followed by Russia (2,190 MT) and France (1,920 MT). Turkey
also imported about 6,330 MT of precut tobacco in 2003, Holland was the
leading supplier with 4,570 MT followed by Switzerland (1,050 MT).

There is no change in Turkish tobacco import regime. Tobacco imports are
subject to 25 percent duty and USD 3 per kg tobacco fund.

# 

# Production

Oriental tobacco production continues to decline as a result of GOT's
efforts to limit production and keep costly tobacco stocks at manageable
levels. The new preseason contract signing method effectively reduced
oriental tobacco production. MY 2004 production is estimated at 145,450
MT (farm weight) down from 157,100 MT last year. Production declined in
all regions but the Southeast Anatolian region. The biggest drop
occurred in the Aegean region, where Turkey's top selling export quality
tobaccos are produced. MY 2004 production in this region fell to 95,305
MT down from about 104,560 MT last year. Dry weather conditions in the
region during the growing season also affected production adversely.
Production in other regions was; Black Sea 21,735 MT, Marmara 2,220 MT,
East Anatolia 4,435 MT and Southeast Anatolia 21,760 MT. For MY 2004
TEKEL signed production contracts for a total of 48,940 MT while private
companies total contracted amounts reached 96,500 MT.

TEKEL also limits its contact amounts to 200 kg per farm. Even though
the law required that excessive production is sold in auctions and via
catalogs; no steps are taken on these issues. As a result, TEKEL ended
up buying 10,000 MT of excessive MY 2003 tobacco last year.

The GOT is pursuing an alternative crop program for tobacco producers
with assistance from IBRD. According to the program, farmers who shift
from tobacco to an alternative crop are eligible for a USD 80 per dekar
support payment. This program will end in 2004. It is reported that
about 72,000 farmers shifted their production from tobacco to other
crops because of the reduction program. Farmers in the Eastern and
Southeastern regions are reportedly planting grains, pulses and
vegetables and in the Aegean region farmers are planting grains and
grapes in place of tobacco.

In the long run, oriental tobacco production in Turkey will be free of
competition from EU member countries due to the lifting of tobacco
production support programs in the EU. However, farmers will be facing
increasing competition from eastern neighbors and FSU countries due to
increasing production of oriental tobacco varieties in these countries.

Non-oriental tobacco production will be up marginally in MY 2004.
Flue-cured production is expected to be 5,700 MT and burley production
will be about 2,600 MT.

## 

# Consumption

In MY 2003 while oriental tobacco domestic consumption declined,
non-oriental tobacco consumption increased due increasing popularity of
blended cigarettes. The decline in domestic consumption of oriental
tobacco is also attributed to the increase in smuggled low cost
cigarettes. Total tobacco consumption is also adversely effected by the
decline in exports. Oriental tobacco consumption in MY 2004 is estimated
to recover somewhat while non-oriental tobacco consumption continues to
increase due to increases in exports and domestic consumption as a
result of better control against smuggled cigarettes.

# Trade

Turkish oriental tobacco exports in MY 2003 reached 107,870 MT, up from
88,335 MT last year but low compared to the mid-nineties when annual
exports of tobacco were about 150,000 MT on average. Low export pricing
policy has reportedly helped TEKEL to clear stocks by increasing
exports.

During MY 2003 grade A tobacco exports reached 23,760 MT with an average
price of USD 4.81/kg and grade B tobacco exports were 15,980 MT, with an
average price of USD 3.94/kg.

Average prices for the other types were: USD 2.17 kg for "kappa", USD
1.49 for "kappa kappa", and USD 0.52 for scrap tobacco. Turkey also
exported mixed quality tobacco known as "class unique". Exports of this
quality tobacco in MY 2003 increased to 42,990 MT, with an average price
of USD 2.38 per kg.

Existing official trade data does not properly distinguish types of
tobacco imported.

Based on information from a range of sources, Turkey's imports of
non-oriental tobacco in MY 2003 was about 43,390 MT up from 37,280 MT of
last year. Increased domestic consumption and stock replenishments were
the primary reasons for the increase in non-oriental tobacco imports.
About 28,000 MT of imports are estimated to be flue-cured (unstemmed and
stem) and the remainder is burley tobacco (15,390 MT). The U.S. was the
leading supplier of non-oriental tobacco exporting 12,140 MT followed by
Brazil (11,130 MT), Argentina (4,650 MT), Thailand (2,330 MT), China
(1,430 MT) and India (1,280 MT). Additionally, Turkey imported 4,185 MT
of flue-cured tobacco from Zimbabwe and 3,000 MT of burley tobacco from
Malawi.

Turkey also imported 5,550 MT of scrap tobacco in 2003. Brazil was the
leading supplier exporting 2,090 MT followed by Zimbabwe (1,120 MT).
Homogenized tobacco imports during the same period reached 15,180 MT.
The U.S. was the leading supplier with 10,050 MT followed by Russia
(2,190 MT), France (1,920 MT) and Brazil (860 MT).

Turkey also imported about 6,330 MT of precut tobacco in 2003. Holland
was the leading supplier with 4,570 MT followed by Switzerland and
Germany with 1,050 MT and 710 MT respectively.

Since available data do not differentiate between flue-cured, stem and
burley tobacco it is not possible to create trade matrixes for these
items.

# Stocks

Domestic oriental tobacco stocks are expected to decline to 247,780 MT
at the end of 2004.

In the coming years the decline in oriental tobacco stocks is expected
to continue due to the GOT's efforts, which include a combined approach
of production control, exports and stock disposal via burning.

# Policy

There is no change in tobacco import regime. Tobacco imports are subject
to 25 percent duty plus a USD 3 per kg tobacco import fund charge.

# 

# Marketing

Current regulations require a notice stating that cigarette smoking is
harmful to health but do not require manufacturers to print tar and
nicotine levels on cigarette packages.

##  

## Marketing Subcategory

# Cigarette Price

Company& Brand April 2003 April 2004

(Pack of 20) Price(US\$=1,600,000TL) Price(US\$=1,350,000TL)

============ =============== ================

Phillip Morris:

Marlboro 100's 2,750,000 3,600,000

Marlboro Light 2,750,000 3,600,000

Marlboro 85's 2,500,000 3,300,000

Parliament 2,750,000 3,600,000

L&M 100's 1,600,000 2,150,000

L&M 85 mm 1,500,000 2,000,000

Chesterfiled 1,750,000 2,300,000

RJ Reynold:

Camel 85's 2,500,000 3,300,000

Camel 85's light 2,500,000 3,300,000

Salem 2,750,000 3,600,000

Monte Carlo 100's 1,500,000 2,150,000

Winston 1,750,000 2,300,000

TEKEL:

Maltepe 100's 1,000,000 1,500,000

Maltepe 85's 950,000 1,250,000

Samsun 100's 1,000,000 1,500,000

Samsun 85 mm 950,000 1,250,000

TEKEL 2000 100's 2,250,000 2.950,000

TEKEL 2001 100's 1,600,000 2,900,000

Yeni Harman 1,100,000 1,500,000

BAT:

Viceroy 1,600,000 2,000,000

Kent 1,600,000 3,250,000

Pall Mall N/A 2,300,000

End Report

+---------------+------+------+------+------+------+------+------+
| Turkey        |      |      |      |      |      |      |      |
|               |      |      |      |      |      |      |      |
| Tobacco,      |      |      |      |      |      |      |      |
| Unmfg., Total |      |      |      |      |      |      |      |
+---------------+------+------+------+------+------+------+------+
|               | **20 | **R  | **20 | **Es | **20 | **Fo | **U  |
|               | 02** | evis | 03** | tima | 04** | reca | OM** |
|               |      | ed** |      | te** |      | st** |      |
+---------------+------+------+------+------+------+------+------+
|               | **   | **   | **   | **   | **   | **   |      |
|               | USDA | Post | USDA | Post | USDA | Post |      |
|               | Offi | Esti | Offi | Esti | Offi | Esti |      |
|               | cial | mate | cial | mate | cial | mate |      |
|               | \    | \    | \    | \    | \    | \    |      |
|               | [Old | [New | [Old | [New | [Old | [New |      |
|               | \]** | \]** | \]** | \]** | \]** | \]** |      |
+---------------+------+------+------+------+------+------+------+
| **Market Year |      | 01.  |      | 01.  |      | 01.  | MM/  |
| Begin**       |      | 2002 |      | 2003 |      | 2004 | YYYY |
+---------------+------+------+------+------+------+------+------+
| **Area        | 18   | 19   | 21   | 19   | 0    | 18   | (HA) |
| Planted**     | 8190 | 8373 | 0698 | 3789 |      | 3954 |      |
+---------------+------+------+------+------+------+------+------+
| **Beginning   | 36   | 39   | 34   | 34   | 32   | 30   | (MT) |
| Stocks**      | 2462 | 2427 | 6922 | 6694 | 2912 | 6402 |      |
+---------------+------+------+------+------+------+------+------+
| **Farm Sales  | 16   | 15   | 17   | 16   | 0    | 15   | (MT) |
| Weight Prod** | 7000 | 1722 | 1314 | 3482 |      | 3750 |      |
+---------------+------+------+------+------+------+------+------+
| **Dry Weight  | 13   | 12   | 14   | 13   | 0    | 12   | (MT) |
| Production**  | 7810 | 5930 | 2190 | 5690 |      | 7613 |      |
+---------------+------+------+------+------+------+------+------+
| **U.S. Leaf   | 2    | 1    | 1    | 1    | 0    | 1    | (MT) |
| Imports**     | 2500 | 4267 | 1000 | 2256 |      | 4500 |      |
+---------------+------+------+------+------+------+------+------+
| **Other       | 2    | 2    | 4    | 3    | 0    | 3    | (MT) |
| Foreign       | 8500 | 3010 | 4500 | 1132 |      | 8000 |      |
| Imports**     |      |      |      |      |      |      |      |
+---------------+------+------+------+------+------+------+------+
| **TOTAL       | 5    | 3    | 5    | 4    | 0    | 5    | (MT) |
| Imports**     | 2000 | 7277 | 5500 | 3388 |      | 2500 |      |
+---------------+------+------+------+------+------+------+------+
| **TOTAL       | 55   | 55   | 54   | 52   | 32   | 48   | (MT) |
| SUPPLY**      | 2272 | 5634 | 4612 | 5772 | 2912 | 6515 |      |
+---------------+------+------+------+------+------+------+------+
| **Exports**   | 8    | 8    | 9    | 10   | 0    | 10   | (MT) |
|               | 5750 | 8840 | 8000 | 7870 |      | 0000 |      |
+---------------+------+------+------+------+------+------+------+
| **Dom. Leaf   | 6    | 7    | 7    | 6    | 0    | 6    | (MT) |
| Consumption** | 7600 | 1300 | 2500 | 2500 |      | 6500 |      |
+---------------+------+------+------+------+------+------+------+
| **U.S. Leaf   | 2    | 1    | 1    | 1    | 0    | 1    | (MT) |
| Dom.          | 5500 | 7000 | 2000 | 3000 |      | 4500 |      |
| Consum.**     |      |      |      |      |      |      |      |
+---------------+------+------+------+------+------+------+------+
| **Other       | 3    | 3    | 3    | 3    | 0    | 3    | (MT) |
| Foreign       | 1800 | 1800 | 9200 | 6000 |      | 7500 |      |
| Consump.**    |      |      |      |      |      |      |      |
+---------------+------+------+------+------+------+------+------+
| **TOTAL Dom.  | 11   | 12   | 12   | 11   | 0    | 11   | (MT) |
| Consumption** | 9600 | 0100 | 3700 | 1500 |      | 8500 |      |
+---------------+------+------+------+------+------+------+------+
| **TOTAL       | 20   | 20   | 22   | 21   | 0    | 21   | (MT) |
| Di            | 5350 | 8940 | 1700 | 9370 |      | 8500 |      |
| sappearance** |      |      |      |      |      |      |      |
+---------------+------+------+------+------+------+------+------+
| **Ending      | 34   | 34   | 32   | 30   | 0    | 26   | (MT) |
| Stocks**      | 6922 | 6694 | 2912 | 6402 |      | 8015 |      |
+---------------+------+------+------+------+------+------+------+
| **TOTAL       | 55   | 55   | 54   | 52   | 0    | 48   | (MT) |
| D             | 2272 | 5634 | 4612 | 5772 |      | 6515 |      |
| ISTRIBUTION** |      |      |      |      |      |      |      |
+---------------+------+------+------+------+------+------+------+

+----------------+------+------+------+------+------+------+------+
| ####           |      |      |      |      |      |      |      |
| ### **Turkey** |      |      |      |      |      |      |      |
|                |      |      |      |      |      |      |      |
| **Tobacco,     |      |      |      |      |      |      |      |
| Unmfg.,        |      |      |      |      |      |      |      |
| Oriental**     |      |      |      |      |      |      |      |
+----------------+------+------+------+------+------+------+------+
|                | **20 | **R  | **20 | **Es | **20 | **Fo | **U  |
|                | 02** | evis | 03** | tima | 04** | reca | OM** |
|                |      | ed** |      | te** |      | st** |      |
+----------------+------+------+------+------+------+------+------+
|                | **   | **   | **   | **   | **   | **   |      |
|                | USDA | Post | USDA | Post | USDA | Post |      |
|                | Offi | Esti | Offi | Esti | Offi | Esti |      |
|                | cial | mate | cial | mate | cial | mate |      |
|                | \    | \    | \    | \    | \    | \    |      |
|                | [Old | [New | [Old | [New | [Old | [New |      |
|                | \]** | \]** | \]** | \]** | \]** | \]** |      |
+----------------+------+------+------+------+------+------+------+
| **Market Year  |      | 01.  |      | 01.  |      | 01.  | MM/  |
| Begin**        |      | 2002 |      | 2003 |      | 2004 | YYYY |
+----------------+------+------+------+------+------+------+------+
| **Area         | 18   | 19   | 20   | 19   | 0    | 18   | (HA) |
| Planted**      | 5000 | 5960 | 8648 | 1479 |      | 1479 |      |
+----------------+------+------+------+------+------+------+------+
| **Beginning    | 33   | 35   | 31   | 32   | 28   | 28   | (MT) |
| Stocks**       | 2532 | 7260 | 7532 | 2535 | 9424 | 7060 |      |
+----------------+------+------+------+------+------+------+------+
| **Farm Sales   | 16   | 14   | 16   | 15   | 0    | 14   | (MT) |
| Weight Prod**  | 0000 | 4712 | 5533 | 7102 |      | 5450 |      |
+----------------+------+------+------+------+------+------+------+
| **Dry Weight   | 13   | 12   | 13   | 13   | 0    | 12   | (MT) |
| Production**   | 2000 | 0110 | 7392 | 0395 |      | 0723 |      |
+----------------+------+------+------+------+------+------+------+
| **U.S. Leaf    | 0    | 0    | 0    | 0    | 0    | 0    | (MT) |
| Imports**      |      |      |      |      |      |      |      |
+----------------+------+------+------+------+------+------+------+
| **Other        | 0    | 0    | 0    | 0    | 0    | 0    | (MT) |
| Foreign        |      |      |      |      |      |      |      |
| Imports**      |      |      |      |      |      |      |      |
+----------------+------+------+------+------+------+------+------+
| **TOTAL        | 0    | 0    | 0    | 0    | 0    | 0    | (MT) |
| Imports**      |      |      |      |      |      |      |      |
+----------------+------+------+------+------+------+------+------+
| **TOTAL        | 46   | 47   | 45   | 45   | 28   | 40   | (MT) |
| SUPPLY**       | 4532 | 7370 | 4924 | 2930 | 9424 | 7783 |      |
+----------------+------+------+------+------+------+------+------+
| **Exports**    | 8    | 8    | 9    | 10   | 0    | 10   | (MT) |
|                | 5000 | 8335 | 7500 | 7870 |      | 0000 |      |
+----------------+------+------+------+------+------+------+------+
| **Dom. Leaf    | 6    | 6    | 6    | 5    | 0    | 6    | (MT) |
| Consumption**  | 2000 | 6500 | 8000 | 8000 |      | 0000 |      |
+----------------+------+------+------+------+------+------+------+
| **U.S. Leaf    | 0    | 0    | 0    | 0    | 0    | 0    | (MT) |
| Dom. Consum.** |      |      |      |      |      |      |      |
+----------------+------+------+------+------+------+------+------+
| **Other        | 0    | 0    | 0    | 0    | 0    | 0    | (MT) |
| Foreign        |      |      |      |      |      |      |      |
| Consump.**     |      |      |      |      |      |      |      |
+----------------+------+------+------+------+------+------+------+
| **TOTAL Dom.   | 6    | 6    | 6    | 5    | 0    | 6    | (MT) |
| Consumption**  | 2000 | 6500 | 8000 | 8000 |      | 0000 |      |
+----------------+------+------+------+------+------+------+------+
| **TOTAL        | 14   | 15   | 16   | 16   | 0    | 16   | (MT) |
| D              | 7000 | 4835 | 5500 | 5870 |      | 0000 |      |
| isappearance** |      |      |      |      |      |      |      |
+----------------+------+------+------+------+------+------+------+
| **Ending       | 31   | 32   | 28   | 28   | 0    | 24   | (MT) |
| Stocks**       | 7532 | 2535 | 9424 | 7060 |      | 7783 |      |
+----------------+------+------+------+------+------+------+------+
| **TOTAL        | 46   | 47   | 45   | 45   | 0    | 40   | (MT) |
| DISTRIBUTION** | 4532 | 7370 | 4924 | 2930 |      | 7783 |      |
+----------------+------+------+------+------+------+------+------+

  ------------------- ---------------------------- ------------ ----------
  **Export Trade                                                
  Matrix**                                                      

  **Country**         Turkey                                    

  **Commodity**       Tobacco, Unmfg., Oriental                 

  Time Period         MY2003                       Units:       Metric
                                                                tons

  Exports for:                                                  **1**

  U.S.                33992                        U.S.          

  Others                                           Others       

  Germany             16625                                      

  Litvania            11612                                      

  Indonesia           6375                                       

  Holland             4419                                       

  Japan               4010                                       

  France              3213                                       

  Ukrain              2608                                       

  Phillipines         2244                                       

  Poland              2100                                       

  Italy               1848                                       

  Total for Others    55054                                     0

  Others not Listed   18825                                      

  Grand Total         107871                                    0
  ------------------- ---------------------------- ------------ ----------

+-----------------+------+------+------+------+------+------+------+
| **Turkey**      |      |      |      |      |      |      |      |
|                 |      |      |      |      |      |      |      |
| **Toba          |      |      |      |      |      |      |      |
| cco,Unmfg.,Flue |      |      |      |      |      |      |      |
| Cured**         |      |      |      |      |      |      |      |
+-----------------+------+------+------+------+------+------+------+
|                 | **20 | **R  | **20 | **Es | **20 | **Fo | **U  |
|                 | 02** | evis | 03** | tima | 04** | reca | OM** |
|                 |      | ed** |      | te** |      | st** |      |
+-----------------+------+------+------+------+------+------+------+
|                 | **   | **   | **   | **   | **   | **   |      |
|                 | USDA | Post | USDA | Post | USDA | Post |      |
|                 | Offi | Esti | Offi | Esti | Offi | Esti |      |
|                 | cial | mate | cial | mate | cial | mate |      |
|                 | \    | \    | \    | \    | \    | \    |      |
|                 | [Old | [New | [Old | [New | [Old | [New |      |
|                 | \]** | \]** | \]** | \]** | \]** | \]** |      |
+-----------------+------+------+------+------+------+------+------+
| **Market Year   |      | 01.  |      | 01.  |      | 01.  | MM/  |
| Begin**         |      | 2002 |      | 2003 |      | 2004 | YYYY |
+-----------------+------+------+------+------+------+------+------+
| **Area          | 2300 | 1671 | 1400 | 1548 | 0    | 1650 | (HA) |
| Planted**       |      |      |      |      |      |      |      |
+-----------------+------+------+------+------+------+------+------+
| **Beginning     | 1    | 2    | 1    | 1    | 2    | 1    | (MT) |
| Stocks**        | 9355 | 3410 | 7755 | 5575 | 0467 | 3170 |      |
+-----------------+------+------+------+------+------+------+------+
| **Farm Sales    | 5000 | 4780 | 3870 | 4333 | 0    | 5700 | (MT) |
| Weight Prod**   |      |      |      |      |      |      |      |
+-----------------+------+------+------+------+------+------+------+
| **Dry Weight    | 4150 | 3970 | 3212 | 3595 | 0    | 4730 | (MT) |
| Production**    |      |      |      |      |      |      |      |
+-----------------+------+------+------+------+------+------+------+
| **U.S. Leaf     | 1    | 9500 | 7500 | 7960 | 0    | 9000 | (MT) |
| Imports**       | 5000 |      |      |      |      |      |      |
+-----------------+------+------+------+------+------+------+------+
| **Other Foreign | 1    | 1    | 2    | 2    | 0    | 2    | (MT) |
| Imports**       | 9000 | 5500 | 9500 | 0040 |      | 4000 |      |
+-----------------+------+------+------+------+------+------+------+
| **TOTAL         | 3    | 2    | 3    | 2    | 0    | 3    | (MT) |
| Imports**       | 4000 | 5000 | 7000 | 8000 |      | 3000 |      |
+-----------------+------+------+------+------+------+------+------+
| **TOTAL         | 5    | 5    | 5    | 4    | 2    | 5    | (MT) |
| SUPPLY**        | 7505 | 2380 | 7967 | 7170 | 0467 | 0900 |      |
+-----------------+------+------+------+------+------+------+------+
| **Exports**     | 750  | 505  | 500  | 0    | 0    | 0    | (MT) |
+-----------------+------+------+------+------+------+------+------+
| **Dom. Leaf     | 4000 | 3300 | 3000 | 3000 | 0    | 4500 | (MT) |
| Consumption**   |      |      |      |      |      |      |      |
+-----------------+------+------+------+------+------+------+------+
| **U.S. Leaf     | 1    | 1    | 8000 | 9000 | 0    | 1    | (MT) |
| Dom. Consum.**  | 7000 | 2000 |      |      |      | 0000 |      |
+-----------------+------+------+------+------+------+------+------+
| **Other Foreign | 1    | 2    | 2    | 2    | 0    | 2    | (MT) |
| Consump.**      | 8000 | 1000 | 6000 | 2000 |      | 3000 |      |
+-----------------+------+------+------+------+------+------+------+
| **TOTAL Dom.    | 3    | 3    | 3    | 3    | 0    | 3    | (MT) |
| Consumption**   | 9000 | 6300 | 7000 | 4000 |      | 7500 |      |
+-----------------+------+------+------+------+------+------+------+
| **TOTAL         | 3    | 3    | 3    | 3    | 0    | 3    | (MT) |
| Disappearance** | 9750 | 6805 | 7500 | 4000 |      | 7500 |      |
+-----------------+------+------+------+------+------+------+------+
| **Ending        | 1    | 1    | 2    | 1    | 0    | 1    | (MT) |
| Stocks**        | 7755 | 5575 | 0467 | 3170 |      | 3400 |      |
+-----------------+------+------+------+------+------+------+------+
| **TOTAL         | 5    | 5    | 5    | 4    | 0    | 5    | (MT) |
| DISTRIBUTION**  | 7505 | 2380 | 7967 | 7170 |      | 0900 |      |
+-----------------+------+------+------+------+------+------+------+

+----------------+------+------+------+------+------+------+------+
| #######        |      |      |      |      |      |      |      |
|                |      |      |      |      |      |      |      |
| #######        |      |      |      |      |      |      |      |
|                |      |      |      |      |      |      |      |
| ####           |      |      |      |      |      |      |      |
| ### **Turkey** |      |      |      |      |      |      |      |
|                |      |      |      |      |      |      |      |
| **Tobacco,     |      |      |      |      |      |      |      |
| Unmfg.,        |      |      |      |      |      |      |      |
| Burley**       |      |      |      |      |      |      |      |
+----------------+------+------+------+------+------+------+------+
|                | **20 | **R  | **20 | **Es | **20 | **Fo | **U  |
|                | 02** | evis | 03** | tima | 04** | reca | OM** |
|                |      | ed** |      | te** |      | st** |      |
+----------------+------+------+------+------+------+------+------+
|                | **   | **   | **   | **   | **   | **   |      |
|                | USDA | Post | USDA | Post | USDA | Post |      |
|                | Offi | Esti | Offi | Esti | Offi | Esti |      |
|                | cial | mate | cial | mate | cial | mate |      |
|                | \    | \    | \    | \    | \    | \    |      |
|                | [Old | [New | [Old | [New | [Old | [New |      |
|                | \]** | \]** | \]** | \]** | \]** | \]** |      |
+----------------+------+------+------+------+------+------+------+
| **Market Year  |      | 01.  |      | 01.  |      | 01.  | MM/  |
| Begin**        |      | 2002 |      | 2003 |      | 2004 | YYYY |
+----------------+------+------+------+------+------+------+------+
| **Area         | 890  | 742  | 650  | 762  | 0    | 825  | (HA) |
| Planted**      |      |      |      |      |      |      |      |
+----------------+------+------+------+------+------+------+------+
| **Beginning    | 1    | 1    | 1    | 8584 | 1    | 6172 | (MT) |
| Stocks**       | 0575 | 1757 | 1635 |      | 3021 |      |      |
+----------------+------+------+------+------+------+------+------+
| **Farm Sales   | 2000 | 2230 | 1911 | 2047 | 0    | 2600 | (MT) |
| Weight Prod**  |      |      |      |      |      |      |      |
+----------------+------+------+------+------+------+------+------+
| **Dry Weight   | 1660 | 1850 | 1586 | 1700 | 0    | 2160 | (MT) |
| Production**   |      |      |      |      |      |      |      |
+----------------+------+------+------+------+------+------+------+
| **U.S. Leaf    | 7500 | 4767 | 3500 | 4296 | 0    | 5500 | (MT) |
| Imports**      |      |      |      |      |      |      |      |
+----------------+------+------+------+------+------+------+------+
| **Other        | 1    | 7510 | 1    | 1    | 0    | 1    | (MT) |
| Foreign        | 0500 |      | 5000 | 1092 |      | 4000 |      |
| Imports**      |      |      |      |      |      |      |      |
+----------------+------+------+------+------+------+------+------+
| **TOTAL        | 1    | 1    | 1    | 1    | 0    | 1    | (MT) |
| Imports**      | 8000 | 2277 | 8500 | 5388 |      | 9500 |      |
+----------------+------+------+------+------+------+------+------+
| **TOTAL        | 3    | 2    | 3    | 2    | 1    | 2    | (MT) |
| SUPPLY**       | 0235 | 5884 | 1721 | 5672 | 3021 | 7832 |      |
+----------------+------+------+------+------+------+------+------+
| **Exports**    | 0    | 0    | 0    | 0    | 0    | 0    | (MT) |
+----------------+------+------+------+------+------+------+------+
| **Dom. Leaf    | 1600 | 1500 | 1500 | 1500 | 0    | 2000 | (MT) |
| Consumption**  |      |      |      |      |      |      |      |
+----------------+------+------+------+------+------+------+------+
| **U.S. Leaf    | 8500 | 5000 | 4000 | 4000 | 0    | 4500 | (MT) |
| Dom. Consum.** |      |      |      |      |      |      |      |
+----------------+------+------+------+------+------+------+------+
| **Other        | 8500 | 1    | 1    | 1    | 0    | 1    | (MT) |
| Foreign        |      | 0800 | 3200 | 4000 |      | 4500 |      |
| Consump.**     |      |      |      |      |      |      |      |
+----------------+------+------+------+------+------+------+------+
| **TOTAL Dom.   | 1    | 1    | 1    | 1    | 0    | 2    | (MT) |
| Consumption**  | 8600 | 7300 | 8700 | 9500 |      | 1000 |      |
+----------------+------+------+------+------+------+------+------+
| **TOTAL        | 1    | 1    | 1    | 1    | 0    | 2    | (MT) |
| D              | 8600 | 7300 | 8700 | 9500 |      | 1000 |      |
| isappearance** |      |      |      |      |      |      |      |
+----------------+------+------+------+------+------+------+------+
| **Ending       | 1    | 8584 | 1    | 6172 | 0    | 6832 | (MT) |
| Stocks**       | 1635 |      | 3021 |      |      |      |      |
+----------------+------+------+------+------+------+------+------+
| **TOTAL        | 3    | 2    | 3    | 2    | 0    | 2    | (MT) |
| DISTRIBUTION** | 0235 | 5884 | 1721 | 5672 |      | 7832 |      |
+----------------+------+------+------+------+------+------+------+

+------------+-------+-------+-------+-------+-------+-------+-------+
| Turkey     |       |       |       |       |       |       |       |
|            |       |       |       |       |       |       |       |
| ###        |       |       |       |       |       |       |       |
| #### Tobac |       |       |       |       |       |       |       |
| co, Mfg.,  |       |       |       |       |       |       |       |
| Cigarettes |       |       |       |       |       |       |       |
+------------+-------+-------+-------+-------+-------+-------+-------+
|            | **2   | *     | **2   | **    | **2   | **    | **    |
|            | 002** | *Revi | 003** | Estim | 004** | Forec | UOM** |
|            |       | sed** |       | ate** |       | ast** |       |
+------------+-------+-------+-------+-------+-------+-------+-------+
|            | *     | *     | *     | *     | *     | *     |       |
|            | *USDA | *Post | *USDA | *Post | *USDA | *Post |       |
|            | Off   | Est   | Off   | Est   | Off   | Est   |       |
|            | icial | imate | icial | imate | icial | imate |       |
|            | \[Ol  | \[Ne  | \[Ol  | \[Ne  | \[Ol  | \[Ne  |       |
|            | d\]** | w\]** | d\]** | w\]** | d\]** | w\]** |       |
+------------+-------+-------+-------+-------+-------+-------+-------+
| **Market   |       | 01    |       | 01    |       | 01    | MM    |
| Year       |       | .2002 |       | .2003 |       | .2004 | /YYYY |
| Begin**    |       |       |       |       |       |       |       |
+------------+-------+-------+-------+-------+-------+-------+-------+
| **Filter   | 1     | 1     | 1     | 1     | 0     | 1     | (MIL  |
| Pr         | 30330 | 30330 | 34000 | 25500 |       | 29500 | PCS)  |
| oduction** |       |       |       |       |       |       |       |
+------------+-------+-------+-------+-------+-------+-------+-------+
| **         | 500   | 500   | 500   | 500   | 0     | 500   | (MIL  |
| Non-Filter |       |       |       |       |       |       | PCS)  |
| Pr         |       |       |       |       |       |       |       |
| oduction** |       |       |       |       |       |       |       |
+------------+-------+-------+-------+-------+-------+-------+-------+
| **TOTAL    | 1     | 1     | 1     | 1     | 0     | 1     | (MIL  |
| Pr         | 30830 | 30830 | 34500 | 26000 |       | 30000 | PCS)  |
| oduction** |       |       |       |       |       |       |       |
+------------+-------+-------+-------+-------+-------+-------+-------+
| *          | 0     | 0     | 0     | 0     | 0     | 0     | (MIL  |
| *Imports** |       |       |       |       |       |       | PCS)  |
+------------+-------+-------+-------+-------+-------+-------+-------+
| **TOTAL    | 1     | 1     | 1     | 1     | 0     | 1     | (MIL  |
| SUPPLY**   | 30830 | 30830 | 34500 | 26000 |       | 30000 | PCS)  |
+------------+-------+-------+-------+-------+-------+-------+-------+
| *          | 15330 | 15330 | 18500 | 12549 | 0     | 15000 | (MIL  |
| *Exports** |       |       |       |       |       |       | PCS)  |
+------------+-------+-------+-------+-------+-------+-------+-------+
| **Domestic | 1     | 1     | 1     | 1     | 0     | 1     | (MIL  |
| Con        | 15500 | 15500 | 16000 | 13451 |       | 15000 | PCS)  |
| sumption** |       |       |       |       |       |       |       |
+------------+-------+-------+-------+-------+-------+-------+-------+
| **TOTAL    | 1     | 1     | 1     | 1     | 0     | 1     | (MIL  |
| DIST       | 30830 | 30830 | 34500 | 26000 |       | 30000 | PCS)  |
| RIBUTION** |       |       |       |       |       |       |       |
+------------+-------+-------+-------+-------+-------+-------+-------+

+---------------------------+-------------+----------+-----------------+
| **Export Trade Matrix**   |             |          |                 |
+---------------------------+-------------+----------+-----------------+
| Turkey                    |             |          |                 |
|                           |             |          |                 |
| Tobacco, Mfg., Cigarettes |             |          |                 |
+---------------------------+-------------+----------+-----------------+
| Time Period               | MY2003      | Units:   | Mil. Pieces     |
+---------------------------+-------------+----------+-----------------+
| Exports for:              |             |          | **1**           |
+---------------------------+-------------+----------+-----------------+
| U.S.                      |             | U.S.     |                 |
+---------------------------+-------------+----------+-----------------+
| Others                    |             | Others   |                 |
+---------------------------+-------------+----------+-----------------+
| Iran                      | 5609        |          |                 |
+---------------------------+-------------+----------+-----------------+
| Belqium                   | 2467        |          |                 |
+---------------------------+-------------+----------+-----------------+
| Greece                    | 1392        |          |                 |
+---------------------------+-------------+----------+-----------------+
| Slovenia                  | 810         |          |                 |
+---------------------------+-------------+----------+-----------------+
| Jordan                    | 503         |          |                 |
+---------------------------+-------------+----------+-----------------+
| Letonia                   | 492         |          |                 |
+---------------------------+-------------+----------+-----------------+
| N. Cyprus                 | 454         |          |                 |
+---------------------------+-------------+----------+-----------------+
| Yugoslavia                | 237         |          |                 |
+---------------------------+-------------+----------+-----------------+
| Afganistan                | 186         |          |                 |
+---------------------------+-------------+----------+-----------------+
| B.A.E.                    | 151         |          |                 |
+---------------------------+-------------+----------+-----------------+
| Total for Others          | 12301       |          | 0               |
+---------------------------+-------------+----------+-----------------+
| Others not Listed         | 246         |          |                 |
+---------------------------+-------------+----------+-----------------+
| Grand Total               | 12547       |          | 0               |
+---------------------------+-------------+----------+-----------------+