-C
         Hote for H. Davil,Ese
                      The future~of YI
         i, production
       7 1,11   Y1, a flue cured cultivar, not aPPIPved in the.
                U~S,A,, produces an unusually high overall nicotine
                -strips circa 6$,1 stems circa 1$,

           1,2  Since its development in the late 19'10'B, extensive
                selection has improved yield and smoking
                characteristics; It is now male sterile (corPpetitive
                advantage) and has resistance to one species of toot
                knot nematode,

                Y1 has bean/is being grown by BAT operating
                companies in Brazil, Honduras, Zitababwa and
                Venezuela (unsuceessfully)~ In 1990 Souza Cruz
                should pack '180 tons (sttips: in three grades); in
                1991 Souza Cruz plan to produce 910 tons (strips)
                while Honduras plan to produce 140 tons (sttiDs),
                All production is contracted to Brown and
                Wi Iliamsonl

                Saute Cruz, with seven years experience of Y1,
                consider it has a lower yield potential than
                standard cultivats; it is fast ripening and.
                difficult to cute; it 15 sensitive to Granville
                wilt. if these latter problems cannot be overcome,
                farmers price will have to be 405 over standard flue
                cured; if these can be overcome the 'premium' could
                be reduced to 202,

         2, Vtilizatio?

           2,1, Most blends require a blend nicotine in the range
                l.B to 2,21, Assuming 20$ stem inclusion, this
                equates to a lamina nicotine of 2,3'11 and with a
                50:50 flavour:filler blend, flavour tobaccos would
                have to have a lamina nicotine of 3,50~, filler
                tobaccos, a lamina nicotine of 1,751 (to achieve the
                2,3?$), Tobaccos of this type are readily available
                on the world markets.

           2,2, Y1 combines high nicotine with normal tar and its
                use will change the tar:nicotine ratio, Brown and
                Williamsan have undertaken vast research with Y1
                but, currently, it is not in any commercial blend.


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                            ·2-


        2,3l              tow tar cigarettes could offer the best potential
                          for Y1 as nigher blend nicotine is normally required
                          to compensate for the higher filtration, ventilation
                          and paper permeability required to achieve low ear,
                          However, R h D's Project Felt showed it is possible
                          I, y( I,rpto fonnulata a low tar cigarette, uith full flavour,
                          il~ ~ 2~ ~P;""';~:"""" """ "''" "'"'""" '"


              1,4, Y1 usage, in normal full tlavour cigarettes, by
                          increasing the stem and tiller content to compensate
                          for blend nicotine land costl) is, of course,
                          possible but, experience suggests a lass In smoke
                          flavour (lowet lamina content) and an increase in
                          irritation (higber stem content),

              Proposed Etion

           i, It is essential, notwithstanding the apparent current
             constraints on price and limited sources, to undertake a
             full evaluation of the possible contribution of Y1 to
             Virginia products tan action previously suggested at leaf
             Steering Committee meetings but shelved due to the then
             lack of adequate material),

              This evaluation to be undertaken by leaf Department
              Millbank In conjunction with BhTCo Technology Centre and at
              least two BbTCo operating companies - utilizing aged
              tobaccos from Brown and Wllllamson (circa 5 tons),

           2. BATCF ate undertaking a similar evaluation: if Souza Cruz
             feel Y1 has a potential role In their products this must be
             encouraged,

           3, Until these ate completed it seems unwise to ask Souza Cruz
             to increase Y1 production, Souza Ctuz have a programme to
             'improve" Y1 and should be able, by 1991, to project a more
             exact Price,

           4, It seems prudent, however, given access to Y1 material, to
             consider that one other BATCo operating company, 'causlng
             tobacco to be grown' undertakes small field trials, The
             choice to depend on the possible eo~nerc~al advantage of
             having access to a domestic crop of YI,

           5, Closer liaison, with Brown and Williamson, on all aspects
             of the utilization of Y1 In blended products must be
             established,
               k' ii r~~li
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