The Leaf Tobacco Deliberative Council agrees to JT's proposal to reduce the total tobacco cultivation area in Japan, said JT in a press release.

Japan Tobacco Inc. (JT) has stated that the Leaf Tobacco Deliberative Council announced the council's decision to reduce the total tobacco cultivation area based on a survey of each Japanese leaf tobacco growers' willingness to cultivate for the 2022 leaf tobacco sales contract. This decision was based on the council's approval of a proposal submitted by JT earlier in the day.
According to JT, in the Japanese-domestic tobacco business, the total demand has continued to decline in recent years due to structural factors such as the fall in the adult population and the aging of society, as well as tighter smoking-related regulations. In addition, there have been rapid changes in the market over the past few years, such as the expansion and intensifying competition of the heated tobacco and the value-segment cigarette categories. “Our sales volume has likewise continued to decline following the decline of total demand, despite efforts to strengthen our top line through the growth of our heated tobacco category and to increase the share of cigarettes,” JT said.
In light of these circumstances, JT has made the proposal to reduce the total tobacco cultivation area, with the aim to secure a balance of supply and demand over the mid and long term, and to rebuild a stable and sustainable structure to produce and procure domestic leaf tobacco. Specifically, JT will ask each Japanese leaf tobacco grower if they would like to cease tobacco cultivation.
In accordance with this decision, JT will summarise each grower's intent on next year's tobacco cultivation upon consultation and in cooperation with the growers' unions. Based on the survey results, JT will then submit its proposal on tobacco cultivation areas and leaf prices for 2022 to the next Leaf Tobacco Deliberative Council scheduled for autumn.