US Growers Tobacco Company creates new marketing opportunity

Special to Kentucky Agricultural News

The Burley Tobacco Growers Cooperative is giving tobacco growers a new option for marketing their tobacco with the launch of a new business, US Growers Tobacco Company.

US Growers Tobacco Company (USGTC) will offer growers/owners warehousing and a new market for tobacco. USGTC will provide facilities where growers can deliver, process, and store their tobacco while waiting for prices to become favorable.

"The Co-op Board wanted to find a way to help producers without tobacco contracts make prudent business decisions without being pressed for time or facility restraints," said Roger Quarles, president of the Burley Tobacco Growers Co-op Association. "US Growers Tobacco will provide growers an option of retaining ownership of their tobacco to hopefully catch better prices for their leaf in domestic and international markets."

Tobacco producers will receive a certificate listing the pounds, type, and grade of tobacco when they deliver tobacco to the facility. Once the grower delivers tobacco, it will be processed and commingled by marketable type and grade for longer storage and marketing opportunities.

"We want to be clear that tobacco purchased by the US Growers Tobacco will not be commingled with the tobacco purchased by the Burley Tobacco Growers Cooperative," said Quarles. "These are two separate companies, and all tobacco will be kept separate in the processing and in the storage at the G.F. Vaughan, Lexington, Kentucky facility."

USGTC will sell the tobacco proportionally by type, grade, and year in both international and domestic markets. Tobacco owners will pay USGTC 10 cents per green pound for the services, plus the normal storage and processing fees.  Tobacco owners will be paid when tobacco is sold, with all processing and storage fees deducted from payments.

"US Growers Tobacco is not just for burley tobacco growers, but all tobacco producers from dark fired to flue cured can bring their tobacco to be processed and stored," explained Brian Furnish, general manager of the new company. "USGTC will advance the cost of processing and storage fees, which will mean there will be no upfront charge to producers who will retain an ownership interest of their tobacco."

To schedule your delivery time or to receive more information on USGTC, contact USGTC at (859) 231-9856.