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Tobacco Production Overview

Tobacco Production Overview. Tobacco Types. Flue-cured cured with heat (7-8 days) Burley air-cured (several months) Dark air-cured and Dark Fire-cured Cigar Oriental. 2010 Estimated World Tobacco Production. Oriental: 272 M Kg Dark Air-Cured: 126 M Kg. ULNA. Federal Quota Buyout.

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Tobacco Production Overview

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  1. Tobacco Production Overview

  2. Tobacco Types • Flue-cured • cured with heat (7-8 days) • Burley • air-cured (several months) • Dark air-cured and Dark Fire-cured • Cigar • Oriental

  3. 2010 Estimated World Tobacco Production Oriental: 272 M Kg Dark Air-Cured: 126 M Kg ULNA

  4. Federal Quota Buyout • October, 2004 • Quota had value (bought and sold since the 30’s); License to Produce Tobacco • Growers and Quota Owners Paid for Quota and Program dissolved • Fully Funded by Tobacco Companies • 10 annual payments • $7/lb owned and $3/lb grown

  5. 2004 Quota Determination

  6. NC Burley Tobacco Production NCDA-CS

  7. Post Buyout Burley Tobacco • North Carolina Production • 2004: 4,700 acres (Pre-buyout) • 2005: 3,000 acres • 2006: 4,200 acres • 2007: 4,000 acres • 2010: 2,000 to 2,500 acres NCDA-CS

  8. 2009 Flue-cured Tobacco Production NCDA-CS

  9. Post Buyout FC Tobacco • North Carolina Production • 2004: 150,000 acres (Pre-buyout) • 2005: 123,000 acres • 2006: 155,000 acres • 2007: 164,000 acres • 2010: 170,000 acres • Price • 2004: $1.86 per pound (Pre-buyout) • 2005: $1.48 per pound • 2010: $1.72 per pound NCDA-CS

  10. Total Tobacco Value by State2006 • NC: $496 M • KY: $331 M • TN: $93 M • SC: $72 M • VA: $71 M NCDA-CS

  11. Flue-cured Tobacco Production 2009 • NC: 418 Million pounds • VA: 40 Million pounds • SC: 37 Million pounds • GA: 21 Million pounds • FL: N/A USDA

  12. Transplants $210 Lime $17 Fumigation $125 Fertilizer $175-300 Herb. and Fung. $120 Insecticides $36 Sucker Control $125 Cover Crop $15 Curing Fuel $350? Electricity $125 Crop Ins. $65 Bailing Supp. $8 Machinery $330 Labor $900 - 1300 Interest $35 Flue-cured Variable Costs

  13. Fixed Costs • Tractor/Machinery $320 • Barns and Equipment $170

  14. Net Return • Total Costs = $3,500 • 2,500 lbs / Acre X $1.70 = $4,250 • NET RETURN = $750

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