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Leaf Trends and Quality Expectations

Leaf Trends and Quality Expectations. U.S. Tobacco Forum Durham, NC June 11, 2010. Worldwide Trends . Total flue-cured production is remaining very stable throughout the world There are greater variations in flue-cured production within different regions throughout the past years

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Leaf Trends and Quality Expectations

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  1. Leaf Trends and Quality Expectations U.S. Tobacco Forum Durham, NC June 11, 2010

  2. Worldwide Trends • Total flue-cured production is remaining very stable throughout the world • There are greater variations in flue-cured production within different regions throughout the past years • Future Production totally dependant on demand

  3. Worldwide Trends • Total burley production has declined throughout the world • This primarily due to a shift in sales away from an American blended cigarette to a Virginia blended cigarette. • There continues to be consolidation of cigarette manufacturers throughout the world.

  4. U.S. Quality Expectations

  5. Leaf QualityExpectations • Contract Company specific requirements • NTRM FREE!! • Tobacco moisture • Pesticide Residues • FDA regulation affecting the farm level

  6. Company Requirements Number of harvests Crop Throw Requirements Quality Expectations Color line that is in highest demand Crop Protection Agent residue requirements Overall adherence to all contract stipulations

  7. NTRM

  8. NTRM • Zero Tolerance • Synthetic • Non-Synthetic • Organic • Increased emphasis as a result of FDA

  9. NTRM • Farm Inspections • Increased picking at the farm level • Grower education • Farm Ratings

  10. Tobacco Moisture All companies require adherence to moisture levels Some companies offer incentives for tobacco delivered in a certain moisture range Rejection of the tobacco due to higher than acceptable moisture levels

  11. Crop Protection Agent Residues

  12. CPA Residues • Increased emphasis from all customers • Applications of only approved pesticides at labeled rates • Follow all post harvest interval requirements • Avoid application/drift of non-labeled pesticides • HUGE POTENTIAL FDA IMPLICATIONS

  13. Potential FDA Implications • Complete traceability • CPA residues • NTRM issues • TSNA levels • Increased regulations from all countries

  14. Concerns

  15. Concerns • Input Costs • Aging grower population • Lack of younger people beginning to grow tobacco • Aging Infrastructure

  16. Concerns • Increases on state cigarette taxes • Increases in state wide and city smoking bans • NC and VA

  17. Questions

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