Friday, November 24, 2023



Workers from the Oxford (N.C.)Tobacco Research Station sweep up some of the last flue-cured tobacco produced this season. Reportedly high in quality, it was gathered, then looped, cured and sold at a demonstration auction at the North Carolina State Fair (Photo by Christopher Bickers).


A CROP TO BE THANKFUL FOR


You know, I wonder if we might look back on the 2023 flue-cured crop some day and think it was one of the the best of the Twenty First Century. Maybe not, but it was a good one. Here is how  Matthew Vann, N.C. Extension tobacco specialist, characterized it. “On average, in North Carolina, we had a solid crop from a yield and quality standpoint, and it gives us good momentum for 2024. 2023 was not without its challenges, with adverse weather a major factor. But our crop stood up against heat and drought very well, thanks to some timely showers." It is predicted that the Southeast will have above average rain this winter, he says. "That is good news," says Vann. "It’s dry across the state now, and we need some ponds to fill back up!"


Late in the flue-cured market, prices were steady, and quality remained good. A wide variety of grades was coming to the market. “Farmers are selling their pickings as well as upperstalk grades,” said one warehouseman. “Some low quality tobacco left over from earlier in the season is also being brought to market.” It appeared that any sound tobacco from this crop found a home somewhere.


A good burley crop is also headed for market, but as it stands now, none will be sold at auction. The only auction that operated last season will not operate at all in 2023-24, says its owner, Jerry Franklin of Danville, Ky., had moved his Farmers Warehouse from Danville to Springfield two seasons ago. But this year, he was outbid in his effort to rent the Springfield warehouse again, and he was unable to find a suitable replacement. Now, his advice is to use up all the contracts that you have access to. But he is afraid there is some burley out there that is not attached to a contract. Rankin may be able to help: He still has some access to cigarette manufactures and is willing to take as much uncontracted tobacco there as he can. Note though that it wouldn't be sold on auction. Call Rankin if you are interested (859 319 1400) and watch this space: There is a talk that a major burley broker may be able to organize some sort of marketing strategy. I will keep you posted.


MORE FROM THE OCTOBER

PRODUCTION REPORT FROM USDA

2023 estimate, percentage change from 2022



FLUE-CURED:                                                                  

  • North Carolina—248.6 million pounds, no change.
  • Virginia—30.72 million pounds, up 5.8%.
  • Georgia--12.6 million pounds, no change.
  • South Carolina--13.34 million pounds, up 14.6%. 
  • Total U.S. 305.2 million pounds, up less than one percent. 


BURLEY:

  • Kentucky--55.35 million pounds, up 5.7%.
  •  Pennsylvania--2.53 million pounds, down 22.7%
  •  Tennessee--4.5 million pounds, up 7.4%
  •  Virginia--420 thousand pounds, down 16%.
  •  North Carolina--240 thousand pounds, down 12.7%.
  •  Total US burley--63 million pounds, up seven percent.


FIRE-CURED: 

  • Kentucky--22 million pounds, down 28.7%
  • Tennessee--16 million pounds, down 20.3%
  • Virginia 220,000 pounds, down 33.3%
  • Total US fired-cured--38.3 million pounds, down 25 percent.


DARK AIR-CURED:

  • Kentucky--9.99 million pounds, down 34.7%.
  • Tennessee--3 million pounds, down 68%                                       
  • Total US--13 million pounds, down 47 percent.


PA SEEDLEAF: 

  • Pennsylvania--9.6 million pounds, up less than one percent.    

 

SOUTHERN MARYLAND:

  • Pennsylvania--135,000 pounds, down 41 percent.



ALL TOBACCO U. S.: 429.4 million pounds, down four percent.


SPOTLIGHT

 

WOULD ADDITIONAL IMPORT RESTRICTIONS ON FOREIGN BURLEY HELP?



By Jim Starkey, retired agricultural economist

A response to "Competing with imports for the domestic market," TFN November 1 2023


 

When the burley [Tariff rate] quota was originally set, it was set at a very restrictive level compared with imports at the time. It did not allow for any new countries over the original ones originally included in the quota. This means that current major world producers like Mozambique are excluded. At the time only Brazil and Malawi utilized a significant part of their quotas. I haven't seen the current numbers so do not know whether this has changed but I don't know why it would have. As I pointed out earlier, new producers cannot import into the U.S. and I doubt there has been significant expansion of production and sales from the countries that have quotas. That imports are higher this year than last is an irrelevant comparison as the lower levels last year are probably due to production shortages abroad last year which limited countries sales to the U.S. to less than their traditional levels.

 

The fact that world burley production is expanding while U.S production is declining suggests the world market may be limited for high quality, high price/cost burley; the countries which are expanding produce lower quality, lower priced tobacco. I don't believe additional import restrictions would change that fact or result in any significant increase in U.S. Burley production.



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