Analysis On The Stable Supply Of Tobacco Leaf Under The Background Of The Franchise System

With the implementation of the Regulations on the Tobacco Monopoly in 1984,China formally established the management system for tobacco industry which is“unified leadership,vertical management,monopoly franchise”.Tobacco leaf is the fundamental element of the development of the tobacco industry.A saying is that“tobacco industry prospers when tobacco leaf prospers;tobacco industry steadies when tobacco leaf steadies;tobacco industry is mansion while tobacco leaf is the corner stone;if the cornerstone is not firm,the mansion will collapse.”So we can get the conclusion that the stability of the tobacco supply concerns the sustainable development of tobacco industry.China's Specializing in the management of tobacco leaf supply made great contributions in the era of the planned economy which guaranteed to meet the demands of industry for tobacco leaf raw materials.Since the accession to the WTO,our country opened up the tobacco market gradually and reduced the tobacco import and export tariffs.Then,the most well-known tobacco companies in the world began to enter China's tobacco market which made a tremendous impact on the tobacco industry in China.In order to guarantee the rapid development of domestic cigarette brands and make it in an invincible position,China successively put forward the development strategies which are the cigarette high level,raw material guaranteed high level,the development plan of cigarette brand “ 532” and sales target of “461”.But with the rapid changes of the market,monopoly system of tobacco leaf supply,to some extent,restricted the stable supply of tobacco because of more and more obvious shortcomings such as rigid and lag problem of adjustment and so on.So it is very important to ensure the stable supply of tobacco leaf in order to guarantee the stable and healthy development of tobacco industry under the new situation.Basing on the background of the franchise system the paper uses the theory ofelasticity and supply and demand balance,qualitative analysis,quantitative analysis and other research methods to analyze and study the stable supply of tobacco.The first part aims at stating the background,significance,target and content of the paper,and then putting forward the basic ideas and methods.The second part summarizes the relevant theoretical research of scholars at home and abroad.The third part introduces the formation and characteristics of tobacco franchise system and clarifies the basic way of tobacco supply under the control of the franchise system.The fourth part combines with large amounts of data to analyze the present status of tobacco supply in China from the aspects of quantity,structure,quality.The stability of tobacco supply in China are analyzed by selecting perspective of demand.By combining with field research the fifth part find out factors that on the background of monopoly system restricts the stable supply of tobacco and analyzes deeply that how these factors restricts tobacco steady supply in our country;the sixth part analyzes the foreign advanced experience of tobacco stable supply,and combines with the problems existing in the tobacco supply at the present stage in our country concluding some enlightenment and experience;the seventh part summarizes the main conclusions of the study and by combining with the specific problems of the stable supply of China's tobacco puts forward some suggestions.The study found that:Firstly,the total supply and demand of tobacco leaf is imbalance in China.The total supply is greater than the total demand.Especially the inventory of the tobacco leaf in the middle and lower grade is very serious;Secondly,the contradiction in tobacco supply structure is obvious which is mainly existed in the tobacco supply area,type and grade.The regional aspects are that supply pressure in high quality tobacco production area,especially in the southwest tobacco area increases.The type aspects are represented that besides the flue-cured tobacco,the sun-cured tobacco,self-help tobacco,aromatic tobacco and others are in a short supply.Moreover,there is a gap between the supply and demand of the raw material of the key brand tobacco.The grade aspects show that the supply of fine tobacco falls short of demand and the purity classes are not high.Thirdly,the quality and characteristics of tobacco leaf needs further improve.In the aspects of the tobacco leaf quality,there are still some serious problems which are the uneven quality of tobacco leaf produced in different regions,the less maturity of the tobacco leaf appearance and the lack of strong color and so on.The content of the total sugar,reducing sugar,starch and nicotine in tobacco are on the high side.There are large gaps between the appearanceand inner quality of high-quality tobacco leaf in China and in the foreign countries.The main features are that the characteristics of aroma is not obvious and the compatibility is not high which cannot meet the demand of cigarette industrial enterprises.Fourthly,the paper concludes that the main factors that monopoly system restricts the stable supply of tobacco leaf are planting plans,contract system in purchase,purchase price controls,acquisitions,the allocation plans and the subsidies policy.Finally,by analyzing the practice of tobacco stable supply of other typical countries in the world,the paper puts forward some suggestions such as ensuring the raw material supply of key brand,improving the tobacco supply structure,promoting the quality of tobacco leaf and improving the management mechanism of the tobacco leaf supply in order to make a guidance for the realization of tobacco industry on the security level of raw material combined with the future trend of the development of the tobacco industry in China and the the problems existing in the current situation of tobacco supply.