The current grower base for flue-cured tobacco in the United States is simply not sustainable, said Jonathan Renn, a farmer near Winston-Salem, N.C., at the annual meeting of the Tobacco Growers Association of North Carolina. In a brutally candid “President’s Message” Renn, who is president of the association, said, “Fewer farms growing more acres is not a healthy model for the industry. I am concerned by the large numbers of growers telling TGANC that they have already exited or will come to that determination very soon. Farm foreclosure and massive liquidation of tobacco-specific assets means retirement-aged growers are seeing accumulated net worth vanish. We call on all purchasers to help us reverse these issues and work with us to restore profitability to tobacco farmers.” Having said all that, Renn acknowledged that there is some hope that the upcoming American crop may enjoy some rebound in market demand. “{Although} one company is reportedly making significant reductions in its [flue-cured] contracts, other information suggests planted acres could trend upward this season,” said Renn. But he said that this might be the right occurrence for the wrong reason. “We are convinced that this has more to do with the extremely limited current global inventories than anything else. What we need is real demand and multi-year contracts to offer longer-term stability.” If U.S. flue growers are resigned to grow less tobacco, that tobacco must provide increased returns, said Renn. “The guiding principle of all business is net margins. As growers, we are losing confidence and optimism in long-term sustainability. I know purchasers grow tired of our persistent advocacy to increase prices. But we are an industry in crisis and the only action that will save is to restore profitability. And that, my fellow growers, is always about price.” The problem of contraband: The illicit trade in cigarettes accounts for a large proportion of the total cigarettes market, said Renn. “Whoever is making these non-compliant, not-taxed products isn’t shopping for leaf in places like Wilson, N.C. “If we’re going to preserve our domestic and export markets for the long-term, then governments around the world must crack down illicit trade before it becomes the leading cigarette seller in the world.” Looking for orders from China: It would really help flue-cured growers if China would return to the American market on a substantial basis, said Renn. “TGANC has written directly to the Chinese on many occasions during the five years since to express our appreciation for past business and to encourage in every way that we know how for them to please return to our market,” said Renn. “We held discussions with their representatives this past October while they were here and having dialog with CST.” It is the sense of TGANC that China desires U.S. full-flavor leaf. “We understand CTI resumed purchases in the past season and even issued some direct contracts in 2022,” said Renn. “It is our hope to see them expand intentions in 2023 and beyond.”
Tobacco Associates (TA) will hold its 76th Annual Meeting on Thursday, March 2, 2023, at the Johnston County Agricultural Center, 2736 NC Hwy. 210, Smithfield, NC 27577. from 10 a.m. till Noon. Speakers will include Mercedes Vázquez, CEO of the International Tobacco Growers Association, will report on global leaf markets and trends; Darryl Jayson, Senior VP/Chief Analytics Officer – TMA; Bobby Wellons, Agricultural Marketing Specialist – USDA/ AMS Cotton & Tobacco Programs; and Hank Mozingo, President of Tobacco Associates.
UPCOMING GAP MEETINGS o Tue Mar 7, 1 pm CST, Russellville, KY. o Mon Mar 13, 6 pm CST, Glasgow, KY. o Tue Mar 14, 9 am CST, Murray, KY. o Tue Mar 14, 6 pm CST, Lafayette, TN. o Tue Mar 21, 9 am EST, Quarryville, PA. o Wed Mar 22, 9 am EST, New Holland, PA. | 
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