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Decline in Cigarette Sales Slowing, USDA Says : Tobacco: Trend is attributed to lower prices. Exports are up markedly and could set another record.

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From Reuters

The steady decline in U.S. cigarette consumption during the past decade is slowing, the U.S. Department of Agriculture said Friday, and cigarette exports could set a record for the second year in a row.

Exports during the first six months of the year were up 21% from the same period in 1994, the department said in a quarterly outlook report on tobacco.

“Lower retail cigarette prices during the last two years have slowed the rate of decline from the 1983-93 period,” it said. “The per-capita smoking rate . . . will decline from last year’s 2,514 cigarettes.”

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The USDA estimates U.S. consumption for this year at 480 billion cigarettes, a per-capita rate of 2,470. Exports are forecast at 250 billion, up from 220.2 billion in 1994.

On Capitol Hill, 20 Republican and Democratic lawmakers signed a pledge to work together to support President Clinton’s plan to reduce smoking among teen-agers.

“The fight ahead won’t be easy. Special-interest tobacco money is flowing to members of both parties of Congress as never before,” said Rep. Henry Waxman (D-Los Angeles).

A coalition of health groups, including the American Cancer Society, released a poll showing that 86% of Americans want Congress to support Clinton’s plan to stop the sale and marketing of cigarettes to children.

Per-capita consumption has declined by about 100 cigarettes a year in recent years. The USDA estimates per-capita use will drop by a combined total of about 70 cigarettes for 1994 and 1995.

U.S. consumption is about 100 billion cigarettes lower than in 1986, but companies’ output is about 90 billion higher because of steady increases in exports.

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Exports should account for a third of this year’s estimated production of 740 billion cigarettes, the USDA said. Belgium and Japan buy the most U.S. cigarettes. Belgium is an entry point for European sales.

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