TTM’s Major Policy

Leaf Policy

1. TTM monitors and promotes tobacco farmers to improve the quality of tobacco leaves by implementing Good Agricultural Practices (GAP). TTM also builds strength and integrates supply chains, and improves tobacco farmers’ quality of life by providing blood test service for chemical residues, awarding for an outstanding farmer, conducting sample collection for residue analysis, following-up and assessing leaf production in accordance with GAP focusing on conserved and sustainable production, consumers’ and relevant individuals’ safety, building good image to the organization. Other concrete supports are providing education on tobacco cultivation and continuously helping with cultivating factors e.g. seeds and fertilizers by integrating in accordance with the State’s policy to support farmers to make a sustainable living.

2. TTM establishes appropriate price ceiling for purchasing tobacco leaves. In the past, TTM increases the price of different species of tobacco leaves every year as per the farmers’ and independent curers’ request to prevent them from growing other alternative crops which have lower cost of production but provide a higher return.

3. TTM determines a long-term operation plan to support a lack of tobacco leaves in the future e.g. tobacco leaf import, expansion of leaf farm in TTM’s land or conducting contract farming between TTM and interested farmers.

4. TTM builds sustainable relationship with tobacco farmers by carrying out a project to promote the tobacco farmers’ successor with different ways such as education support, agricultural technology provision to raise awareness of the tobacco farmers’ significance and build self-esteem towards this occupation.

5. TTM conducts an activity according to a sustainable improvement plan on Thai tobacco leaves through support in tobacco farms producing semi-float bed, motivating tobacco farmers to join such plan and seeking a way to coordinate with tobacco leaf exporters so as to increase more sources of income for the farmers.

6. TTM surveys tobacco farms via satellite images to help farmers who do not have a land for cultivation. The satellite images will also detail species of tobacco leaves in the farms which can be used in collaboration with the Excise Department in issuing a tobacco cultivation permit more quickly than conducting a site survey.

7. TTM allocates quota to help purchase additional leaves from tobacco farmers and sets criteria to select the farmers whose leaves will be purchased, a purchasing procedure and a fixed purchasing price of each type of leaves. Criteria used must be fair and transparent for the benefits of the organization.

8. TTM regulates and monitors production process transparently from upstream to downstream namely tobacco leaf cultivation, leaf production process, produces, goods inventory and distribution system to customers.
Production Policy

1. TTM analyzes impacts and prepares a response plan for high competition due to ASEAN Economic Community (AEC), the government’s policy on decreasing cigarette consumption, WTO’s resistence to monopoly. Also, aproduction capacity plan for the new plant is deliberately prepared in accordance with future circumstances.

2. TTM reviews and sets a Security Features system on cigarette packaging and rolls leading to a standard measure for noticing counterfeit cigarettes easily. TTM also considers other approaches to prevent counterfeit cigarettes e.g. controlling a private company printing cigarette packaging.

3. TTM focuses mainly on efficiency enhancement and cost reduction in all production procedure to promote business sustainability.

Marketing Policy

1. TTM launches a new brand of cigarettes with 7.1 mm in diameter to the market to serve the consumers’ needs.

2. TTM efficiently manages distribution channels between traditional trade wholesalers and modern trade wholesalers by appropriately controlling the sales volume proportion of each distribution channel and in accordance with the price structure set by TTM.

3. TTM enhances the efficiency of distribution channels and improves the potential of tobacco wholesalers.

4. TTM provides customers with satisfactory service both before and after the sale by establishing operational measures as well as monitoring measures for every related activity. TTM periodically assesses and improves its performance.

5. TTM focuses on its cigarette exports to foreign countries with a value of 60 million Baht.

6. TTM organizes marketing and sales management system by area to strengthen the networking system and enhance its management efficiency.

7. TTM considers terminating the production of cigarette brands with low sales volumes

8. TTM takes a proactive approach to suppressing illegal cigarettes by focusing on building networks and collaborat- ing with responsible government agencies.
Administration Policy

1. TTM determines a clear authority of the Committees and Sub-Committees in accordance with the Organization’s strategic plans to oversee the operation of significant issues, namely being a juristic person, Thailand Tobacco Monopoly Hospital, supply chain, production quality control, quality system improvement, new product development, production of expanded tobacco to order, and new business initiation. Some issues still remain TTM weak point currently. Therefore, the executives and the sub-committee in charge should follow up, supervise these issues closely, and find the resolutions for the sake of the organization and employees.

2. TTM efficiently integrates different work systems connectedly, such as production system, leaf procurement system, supply warehouse system, manufacturing system, transportation system, and cigarette export system in order that the executives can manage to obtain maximum benefit for the organization.

3. TTM expedites prevention and suppression of counterfeit and illegal cigarettes seriously by collaborating with responsible government agencies. Currently, it is found that the nation-wide expansion of counterfeit and illegal cigarettes, which contains a huge value, is regarded as significant obstruction of the market share.

4. TTM should provide knowledge and create understanding to the employees about the significance of risk management and how it is associated with a day-today work. It should ensure that the employees strictly follow the established approaches which will help improve the business operation obviously.

5. TTM should ensure to improve staff members’ skill on new information technology adopted in the organization in present and future for preparation of any new changes and provide a specific scholarship to strengthen staff members’ knowledge beneficial to TTM’s operation.

6. TTM should ensure to integrate both technical part and content part for internal and external communication by designating a main responsible individual to verify any communicated message prior to sending out to create efficient communication and good image of the organization.

7. TTM should review and update its regulations so as to meet international standards, be in line with other state enterprises without causing difficulty to the operations.

8. TTM should economically spend the budget with transparency, prioritize urgent expenses as needed by focusing on spending beneficially to majority of staff members first.

9. In the creation of personnel commitment, as part of the TTM’s sustainable development plan, TTM should concentrate on welfare and improvement of working environment for its employees, because the employees’ happiness will result in attachment with the organization and increase more work efficiency.

10. There should be more preventive measures which should be applied to the operation of the Internal Audit Department by preliminarily focusing on the verification process of the terms of reference (TOR) of a particular procurement project in order to be adopted as a model for other projects.

Business Classification

Thailand Tobacco Monopoly (TTM), Ministry of Finance is a state enterprise contributing revenue to the government and being classified in the industrial and commercial branch. TTM is the only tobacco monopoly in the Kingdom of Thailand who produces and distributes cigarettes and related products to satisfy the needs of the majority of consumers. Currently, TTM produces 15 brands of cigarettes in total.
Leaf Cluster

Procure good quality tobacco leaves by promoting and supporting tobacco cultivation and curing process for over 20,000 regional farmers, enabling them to earn a total of 1,600 per year by supplying tobacco leaves to TTM. Production Cluster

Manufacture cigarettes by combining raw materials into the production process for cigarette rolling, packaging and delivery to warehouse.
Production Management Cluster

Plan on tobacco production from raw materials procurement: tobacco leaves, production materials and additives and equipment to support the production. Marketing Cluster

Continuously distribute cigarettes to consumers through distribution channels including wholesalers and retailers across the country to serve maximum customers’ satisfaction, create TTM’s products loyalty and make a protection and suppression plan on illegal cigarettes smuggled into the country.
Administration Cluster

Administrate and manage of resources such as human resources, cash, stationeries, assets and technologies to attain maximum benefits for the organization.