Burley Tobacco Growers Cooperative Contracting Tobacco

Source from:  burleytobacco.com (Lexington) 07/16/2007

The Burley Tobacco Growers Cooperative Association (BTGCA) has announced that tobacco growers will have a new marketing option this year. The Association will allow direct delivery of a limited amount of tobacco to the cooperative for the first time in more than eighty years. The BTGCA was formed by tobacco growers in the early 1920s to help stabilize tobacco markets through a new system of marketing where tobacco growers delivered their tobacco directly to the cooperative. The Federal Tobacco Program was later created and the BTGCA was directly involved in operating the pooling system for tobacco until the demise of the program under the tobacco buyout in 2004. This year, the BTGCA will allow burley growers to sign a marketing agreement to deliver part or all of their crop to the BTGCA's designated location in Lexington, KY. "This will benefit all growers by providing an alternative outlet for production not sold on contract", explained Roger Quarles, President of the BTGCA. The number of burley tobacco growers significantly decreased following passage of the tobacco buyout as many used the opportunity to switch to other enterprises. Tobacco production remains short of demand. While 2007 burley production could reach 240 million pounds, experts estimate demand at close to 300 million pounds. "Fortunately, strong markets have allowed every pound of tobacco to find a home so far", said Quarles. "Eventually, supplies will catch up with demand and we must be prepared to deal with that situation." The BTGCA has worked on establishing new export opportunities for U.S. growers for several years, with particular emphasis on China. Chinese smokers primarily smoke cigarettes that contain only flue-cured type tobacco, but there is a growing interest in an American blend which would utilize burley. This year, the BTGCA developed an arrangement with a sales representative in Indonesia to promote U.S. burley in that growing market. In its effort to support the presence of alternative markets, the BTGCA will continue to purchase from any remaining auction markets while also providing the direct delivery option. Direct delivery of tobacco will allow the BTGCA to obtain adequate supplies to retain a reasonable inventory for export promotion while providing growers an additional sales outlet. For more information about opportunities to sell tobacco to the BTGCA or for a copy of the marketing agreement, call 800-880-3561. Enditem