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STUDY SHOWS TOBACCO STILL POWERFUL ECONOMIC FORCE

 STUDY SHOWS TOBACCO STILL POWERFUL ECONOMIC FORCE
 RALEIGH, N.C., June 1 /PRNewswire/ -- The U.S. tobacco industry


continues to enhance its position as a star performer in the nation's economy, according to a new study released here today by the Tobacco Merchants Association (TMA) at its 77th annual meeting and conference.
 "Despite all the controversy, the tobacco industry represents a significant and growing segment of the U.S. economy," said Farrell Delman, president of TMA.
 The industry is directly and indirectly responsible for 2.3 percent of all jobs in the country, a number greater than the population of Arkansas, Delman said. The number of jobs grew from 2.48 million to 2.64 million during the period 1985 to 1990.
 "Tobacco is a foundation industry for our overall economy," Delman said. "Even as the economy goes through upswings and downswings, the tobacco industry has remained a stable contributor to the U.S. economy."
 Tobacco contributes significantly to the Gross National Product (GNP), Delman said. "Specifically, for every $1,000 worth of goods and services produced by Americans in 1990, more than $26 was generated by tobacco."
 Tobacco's contribution to the GNP in 1990 was $143.6 billion, up nearly 50 percent from the 1985 contribution of $97.1 billion. The tobacco industry annually generates $69.5 billion in worker compensation, $60.4 billion in tax revenues and $143.6 billion to the GNP.
 "Given the decline in domestic consumption, these increases are directly related to the growth in tobacco exports," the TMA said. "During the period 1985 to 1990, the U.S. tobacco industry generated a trade surplus of nearly $20 billion."
 The TMA study covers the period 1975 through 1990, the latest year for which statistics are available. The study's complex national and state models were developed and run by Wharton Econometric Forecasting Associates on behalf of TMA.
 The report shows that the tobacco industry produced more than $69.5 billion in salaries and wages in 1990, up some 30 percent from 1985's $53.5 billion.
 The industry also continues to be a growing source of tax revenues for government at all levels, the report shows. Tax collections, the vast majority from corporate and personal income taxes, totaled $60.4 billion in 1990, an increase of $17.9 billion, or 42.2 percent more than 1985. Tobacco excise taxes accounted for only 16.6 percent of the total.
 According to the report, the tobacco industry is an important part of every state in the union. Not surprisingly given its large population, California led the country in tobacco-related employment in 1990 with 310,550 jobs, compensation of $8.97 billion, and taxes paid of $5.78 billion.
 North Carolina is second with 236,410 jobs, and third with $4.32 billion in compensation and $2.77 billion in tax revenues. The tobacco industry in North Carolina accounts for seven percent of all jobs in the state and generates more than 6 percent of the state's wages and salaries.
 For example, Hookerton, N.C., tobacco farmer F.H. "Buzz" Shackelford, Jr., employs 30 people on his farm. "Tobacco is our bread and butter. Without it, how would these people feed, clothe, or educate their families?" said Shackelford.
 "North Carolina tobacco gross farm sales exceeded $1 billion in 1991, representing the seventh year since 1978 that sales topped the $1 billion mark," said North Carolina Commissioner of Agriculture James A. Graham.
 The tobacco industry generated some $2.77 billion in tax receipts in North Carolina in 1990, of which more than $540 million remained at the state and local levels.
 This data can also be found in "Tobacco USA," the association's new two-volume, 2,000-page compilation of U.S. tobacco national figures, providing breakdowns for all 50 states and the District of Columbia. "Tobacco USA" gives a precise and in-depth picture of the nations tobacco sector, highlighted by a thorough presentation of tobacco's economic contribution at both the national and state levels.
 Founded in 1915, the TMA is the oldest tobacco trade association. It is supported by companies and organizations in all sectors of the tobacco industry including growers, manufacturers, suppliers, leaf dealers, tobacco product distributors, securities firms and management consultants. The TMA is the world's foremost source for current, objective information on the tobacco industry.
 For the first time, the TMA's annual meeting is being held in conjunction with the tri-annual Tobacco International Suppliers Exhibition, where the high-technology of the industry's worldwide suppliers is on display at the Raleigh Civic Center. Founded in 1886, Tobacco International is the largest and oldest tobacco trade journal in the world. It offers in-depth analytical articles as well as pertinent current news on all aspects of the tobacco industry from leaf processing through manufacturing and marketing of cigarettes from all geographic areas.
 THE TOP 10
 TOBACCO INDUSTRY CONTRIBUTION TO TOTAL EMPLOYMENT
 (Thousands of Jobs in 1990)
 RANK STATE EMPLOYMENT
 1. California 310.55
 2. North Carolina 236.41
 3. New York 166.39
 4. Virginia 139.68
 5. Texas 136.64
 6. Georgia 118.66
 7. Pennsylvania 115.28
 8. Kentucky 104.13
 9. Illinois 103.79
 10. Florida 96.59
 TOBACCO INDUSTRY CONTRIBUTION TO TOTAL COMPENSATION
 (Millions of Dollars in 1990)
 RANK STATE COMPENSATION
 1. California 8,972.62
 2. New York 4,962.80
 3. North Carolina 4,319.58
 4. Texas 3,346.03
 5. Virginia 3,221.45
 6. Illinois 2,828.17
 7. Pennsylvania 2,790.92
 8. Georgia 2,728.02
 9. New Jersey 2,715.11
 10. Massachusetts 2,443.00
 TOBACCO INDUSTRY CONTRIBUTION TO TOTAL TAX RECEIPTS
 (Millions of Dollars in 1990)
 RANK STATE COMPENSATION
 1. California 5,788.58
 2. New York 3,866.98
 3. North Carolina 2,765.78
 4. Texas 2,270.94
 5. Illinois 2,001.76
 6. Virginia 1,969.87
 7. Pennsylvania 1,952.61
 8. New Jersey 1,787.35
 9. Georgia 1,654.93
 10. Florida 1,648.66
 Source: Tobacco USA
 /delval/
 -0- 6/1/92
 /Editors: Call contact for copies of the report./
 /CONTACT: Ralph Simpson at Ralph Simpson Associates, 919-761-0711, or Michael Marion at the Tobacco Merchants Association, 609-275-4900/ CO: Tobacco Merchants Association of the U.S., Inc. ST: IN: TOB SU: ECO


JS -- PH003 -- 5471 06/01/92 07:36 EDT
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Date:Jun 1, 1992
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