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Jump to full article: Southeast Farm Press, 2009-11-23
Author: Paul L. Hollis, Farm Press Editorial Staff
Intro: Many growers remain undecided as to how they'll approach tobacco production in 2010, especially considering that some have seen bad crops in recent years.
The future of tobacco production in Florida and Georgia -- hammered already in recent years by decreasing demand and poor crops -- took another blow recently when Philip Morris USA announced it no longer would be purchasing tobacco from the two states.
Philip Morris USA officials held a meeting on Oct. 14, in Alma, Ga., with more than 75 growers from Georgia and Florida attending. Growers were informed of the decision by Philip Morris USA to "no longer offer contracts for the purchase of tobacco in Georgia after the 2009 season." . . .
Nothing is for certain at this point, says Moore, and it's too early to tell what Philip Morris USA's competition might do. The three other buyers of Georgia and Florida tobacco include R.J. Reynolds Tobacco, Alliance One International and U.S. Tobacco Cooperative.
"North Carolina had a tremendous crop this year with an abundance of tobacco left over. Some companies are saying they won't buy above what they contracted for, but some are buying at a cut-rate price," says Moore. "Storage facilities could be filled to capacity going into next season which will affect demand. We hope other companies will step in and buy Georgia tobacco."
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