Yunnan Tobacco Aims to Eliminate Poverty among Achang

By Congming Zou, Gaokun Zhao, Wenjie Tong, Xiaohai Zhang, and Tianfu Li

The Achang are one of the least numerous of the 56 nationalities in China. They only have a population of 39,555, according to official census data from 2014. Most of the Achang currently live in Dehong County, which is the border area between China and Myanmar. Both geological and political conditions have caused extreme poverty among the Achang in this region.

In most of this area the altitude is over 1,000 m. Surrounding mountains limit transportation. Because other industries are absent, the Achang make their living primarily through traditional agriculture. Dehong County is not only a border city, but also close to the Golden Triangle. Drugs and infectious diseases are constant social issues troubling the local government and people. Internal conflicts in Myanmar also threaten people here. In 2015, explosives from Myanmar army were accidently launched across the border killing several Chinese in this area.

These conditions have caused severe poverty among the Achang. The average income of rural residents is RMB3,600 (around US$580) per year, which is much lower than the Chinese national standard for poverty. Recently, the central government of the PRC promoted a plan to eliminate poverty for this minority people. As a state-owned company, Yunnan Tobacco Company is willing to take the social responsibility of starting the “Happy Achang” program. This program will introduce tobacco production and also promote non-tobacco cultivation, to increase the income of the Achang in Dehong County. 

In Husa Township, Dehong County, canola and rice have been the traditional dominant crops. They can bring between US$100-125 profit per mu (667 sq. m) annually, which is less than one third of the profit they could make growing tobacco. However, this region has no traditional tobacco growing area because of its two climate limitations: a distinct rainy season and a dry season. If tobacco is transplanted in April, as is typical for most areas in Yunnan province, it would be impossible to harvest tobacco leaf for curing because of the wet season from May to September. Therefore, the window for tobacco growth is limited to January-June. Unfortunately, there are usually several very cold days in early January when the frost could kill the transplanted tobacco seedlings. 

To tackle the issues with cold in January, a key innovation is the technology for growing transplanted seedlings under plastic film. Transplanted tobacco seedlings are placed in a shallow hole and then covered by plastic film. After the potential for frost days has passed, farmers can break the plastic film and let tobacco seedlings come out.  This technology was proposed by the Yunnan Academy of Tobacco Agricultural Science (YATAS), which is an important partner of the Yunnan Tobacco Company and an important leading tobacco research center for Southern China as well.

After successfully addressing climate limitations, since 2008 Yunnan Tobacco has started to promote tobacco cultivation in Dehong County. At first, the Achang were reluctant to plant tobacco. But, after receiving high cash rewards from growing tobacco, almost 80% of families in Husa Township have now started growing tobacco. In 2016, the area under cultivation reached an unprecedented 20,000 mu. Because of their relative inexperience in growing tobacco, local farmers have yet to fully master the planting and curing technologies, tobacco experts from YATAS frequently provide training for tobacco growers at critical points like transplanting, harvesting, and curing, which helps to ensure the success of tobacco growth and the improvement of income for the Achang in this area.

The blueprint of the “Happy Achang” program promoted by Yunnan Tobacco integrates four major subprograms: the Tobacco Program, the Non-Tobacco Program, the Housing Program, and the Comprehensive Program, to ensure the improvement and self-development of the Achang people. The total investment for this program is around US$160 million for 30,000 people in Husa Township and will last three years from 2015 to 2017. 

Through the Tobacco Program, Yunnan Tobacco is building the basic irrigation systems for tobacco use and country roads to transport mechanical equipment. This investment will help growing tobacco, but it will also be beneficial for other crops such as canola and rice. With its Non-Tobacco Program, Yunnan Tobacco invited the nation’s foremost agricultural experts to investigate local natural resources and promote other agricultural business, like raising cattle, and planting kiwi. This investment is meant to limit the dependence of improved income based only on tobacco. As part of the Housing Program, Yunnan Tobacco donates half of the profit and provides an interest-free loan program to help build new housing. Most of the Achang people live in traditional houses with various livestock on the first floor. Most of these houses are old, and without constant repair, frequently cause fatal accidents.

As for the Comprehensive Program, at its core it is meant to eliminate poverty by increasing the skills of the Achang people. Inviting experts to give professional training is one important aspect; education for the next generation is also a critical aspect. Yunnan Tobacco Company will provide funds to renovate local elementary and middle schools. Other construction projects, like entertainment centers and churches, are also included within the comprehensive program.

Ideally, Yunnan Tobacco is attempting to triple the Achang annual income from US$580 to US$1,580 within three years. Unlike some other international tobacco companies, Yunnan Tobacco Company, being a state-owned company, has an important social role to play.

Although the main purpose of the “Happy Achang” program was to increase the income of the indigenous Achang people, it should also have a significant impact on the high quality flue-cured tobacco leaf supply for Chinese cigarette production. This region was never considered one of the main flue-cure tobacco production areas. However, the local tobacco type (called Cao Yan) has also been prevalent here for many years due to the great ecological environment in this region. (Most traditional Achang people have red-colored teeth as a result of chewing Cao Yan.)

Yunnan Tobacco Company wants to take advantage of this great natural environment to produce green, ecologically sound tobacco leaf of high quality to meet the Chinese top-brand cigarette market demand.

Currently, all Achang tobacco growers in Dehong County have direct contracts with Yunnan Oriental Tobacco Co., Ltd. and the cured leaves were first sold to this company. Then China Tobacco Jiangsu Industrial – the biggest industrial buyer for flue-cured tobacco in this region – stepped in. It owns two famous tobacco cigarette brands, including Su Yan and Nan Jing.  Guangxi Li, who is chairman of the production department at Yunnan Oriental Tobacco, says that the current quality of flue-cured tobacco leaves belongs to the upper middle level based on the industry report. However, the great tobacco growing environment will add extra value to the tobacco leaves cured in this region. Therefore, “natural, green, and ecological” will be three keywords for the flue-cured tobacco production in Dehong County and the Achang growers.