A distinct tendency in consumption, favoring blended cigarettes from the United States, has been noted. During the past 6 years the imports of such cigarettes have increased to nearly eight times the quantities imported in 1934 and in 1941 amounted to 67 million pieces. (See table 22.) However, the consumption of United States cigarettes in Cuba is still relatively very small and represents little more than 1 percent of the total.

TABLE 22.-Consumption in Cuba of domestic cigarettes and cigarettes imported from the United States, 1934-40

Nearly two-thirds of Cuba's tobacco crop is normally exported (figs. 19 and 20), mostly in the form of unmanufactured tobacco, although exports of cigars, because of their higher unit value, have constituted an important part, 10 to 30 percent, of the total value of all tobacco exports. Exports of unmanufactured tobacco since 1910 have varied from 23 to 58 million pounds, with a value of from 9 to 30 million dollars annually. Exports of cigars have tended to decline almost steadily from 256 million pieces in 1906 to only 14 million in 1940. Similarly, the value of cigar exports declined from nearly 20 million dollars in 1906 to 1.2 million in 1940. Exports of cigarettes and smoking tobacco are relatively unimportant, never having reached a combined total value of a million dollars, and during recent years have amounted to less than 100,000 dollars annually.

Exports of unmanufactured tobacco remained fairly consistent at an average of about 35 million pounds annually from 1900 until 1916, when the level was reduced somewhat as a result of the World War, but again increased to a record level of about 47 million pounds annually from 1926 to 1930. During the depression period in the 1930's, with a general decline in world cigar consumption, exports of unmanufactured tobacco from Cuba again declined to an average of only about 27 million pounds during 1931-40.

Nearly all the exports of unmanufactured tobacco are cigar filler. Roughly 60 percent during recent years until 1940 consisted of whole leaf and 40 percent of strips and trimmings, that is, leaf from which the stems and midribs have been removed. Cigar-wrapper leaf accounted for only a small part of the exports and amounted to onefourth to one-half million pounds annually. (See table 23.)

The United States has long been the best export market, taking about 60 percent of the value of all tobacco exports, including cigars. In 1940 and 1941 the United States took three-fourths of the total exports. The United States, however, is primarily a market for unmanufactured tobacco of the better grades for use in blending with domestic leaf in making cigars. About one-half of the quantity and three-fourths of the total value of Cuba's exports of unmanufactured tobacco have been to the United States, the high value being due to

FIGURE 19.-Tobacco production, consumption, and exports, Cuba, 1909–41.

the preponderance of the higher-priced grades and the large proportion of strips. During the 5 years 1936-40, the average value of exports to the United States was 58 cents a pound, whereas that to other countries, largely Spain, averaged only 20 cents a pound. Exports to the United States during recent years have consisted of only about 16 to 28 percent whole leaf (including a little wrapper), 50 to 64 percent strips, and 20 to 22 percent trimmings. The following shows the average quantities of each kind of unmanufactured tobacco exported to the United States in 1936-40:

Wrapper-

Filler unstemmed.

Filler-stemmed_.

Scrap

Total_

1,000 pounds
530
2, 346
7,901

2, 951

13, 728

Of the total exports of wrapper, strips, and scrap, the United States takes between 95 and 98 percent, but takes only 10 to 20 percent of the unstripped leaf. Over a period of years Cuban tobacco accounts for from 15 to 19 percent of all the tobacco used in the manufacture of cigars in the United States.

Table 24 shows the relative importance of the various countries as export markets for unmanufactured tobacco during 1936-40. It should be noted that the United States share is actually more impor

FIGURE 20.-Cigar exports from Cuba, 1910-41.

tant than these data indicate, because of the higher value of its imports.

TABLE 24.-Tobacco exports from Cuba, by country of destination, average 1936-40

Next to the United States in importance is the European market, which during recent years prior to 1940 took about 40 percent of Cuba's exports of unmanufactured tobacco. Spain has been by far the most important, taking between 6 and 9 million pounds of leaf, or

from one-fourth to one-fifth of Cuba's total exports, except during 1936 and 1937, when the war in Spain reduced the quantity to about 3 million pounds. Latin American countries took only 6 to 7 percent. Cigars during recent years (prior to 1940) accounted for about onefourth of the total value of tobacco exports. Prior to 1929, the United States and the United Kingdom were of about equal importance as markets for Cuban cigars, each taking nearly one-third of the total exports; Spain and France were next in importance. But from 1929 to 1932, cigar exports to the United States fell off rapidly to only about one-tenth of the former level, leaving the United Kingdom as the principal market, taking one-half to two-thirds of Cuba's cigar exports. The Spanish Civil War severely reduced shipments to that country, and the European War has cut off the markets in most of the other European countries. This industry has suffered especially since the United Kingdom early in 1940 prohibited further purchases of cigars from Cuba. Thus most of the export market for cigars, which prior to 1930 amounted to 10 to 15 million dollars annually, has now been lost, with exports in 1940 and 1941 amounting to only 1.2 and 1.6 million dollars, respectively.

PRICES

Cuban tobacco is relatively high priced, particularly the grades suitable for use in the manufacture of good cigars. Because of the high prices, plus the import duty, it is used in the United States principally for blending with domestic leaf in order to impart the desirable Havana aroma to domestic cigars. The average export value of all Cuban tobacco over a long period of years has varied from about 30 cents to nearly $1.00 a pound. However, this includes some high-priced wrapper leaf and a large proportion of strips, for which prices are materially higher than for regular filler leaf. During the 5 years 1936-40, the average export value of wrapper leaf was $1.70 a pound; filler leaf, 23.6 cents a pound; strips, 67 cents; and scrap or trimmings, 28 cents. (See table 25.)

TABLE 25.-Tobacco export prices, 1921–41