Georgia Growers Under The Hammer

Source from:  Tobacco Reporter 10/20/2009

The outlook for many Georgia tobacco growers was in doubt last week with the announcement that Philip Morris USA is to close its Alma buying station and not offer new leaf production contracts, according to a Moultrie Observer story. PM USA reportedly told growers at a meeting in Alma on Wednesday that it would no longer issue one-year contracts to growers, though it would honor three- and five-year contracts that were in effect, as long as growers were in good standing. The closing of the Alma buying station reflected PM USA's decision to shift production to North Carolina and Virginia, commented J. Michael Moore, a University of Georgia extension agronomist, after the meeting. Moore added it was too early to determine how big the blow would be to Georgia growers. However, it is understood that PM buys about half of the tobacco produced in the region and that other tobacco companies have not indicated any intention of buying additional leaf. Enditem