Ap3 E 



PROCESSED BINDERS FOR CIGARS 



g||||p$:^ # The Effect on the Market 



p?" for Binder-Type Tobacco 



1 

 m 



JUN2 6 1S67 



CORRECT SERIAL RECOi 



by C. I. Hendrickson, agricultural economist 



Summary 



The shift in cigar binders from natural leaf to binders made of ground 

 tobacco processed into sheets -will affect the prices received by growers, the 

 kinds of tobacco they grow, and the way cured tobacco is handled by both grow- 

 ers and purchasers. 



■Continuance of the rapid growth in use of processed binders could reduce 

 somewhat the total amount of money received by growers for binder- type tobac- 

 cos. But there are offsetting factors: 



1. That part of the binder- type tobaccos that is sold directly for scrap 

 chewing tobacco would continue to be used for the same purposes. The reduc- 

 tion in price for binder types f therefore, would not apply to all the crop of 

 those types. 



2. Cigars with processed binders appear to be quite popular, and if cigar 

 smoking should be increased because of that factor, the total of tobacco used 

 in cigars would be increased. 



This report was originally issued in May 1957 by the Agricultural 

 Marketing Service as AMS-189. It is now reissued, without change 

 in text, by the Marketing Economics Division, Economic Research 

 Service, U. S. Department of Agriculture. 



ERS-121 



May 1963 



