- 2 - 



3. The extreme care that must be taken to raise hinder- type tobacco of 

 the high grades required for cigar binders, including the careful handling in 

 harvesting, curing, and preparing for market, would no longer be necessary, 

 with a consequent reduction in the growers ' production costs . 



k. This development will affect the relative advantage of different areas 

 and growers in producing the tobacco. Those who adapt their production and 

 marketing practices to lower their costs will be in the best position to take 

 advantage of the changed situation. 



Introduction 



Processed binders are made by grinding very dry tobacco leaves, including 

 the stems, mixing them as a fine powder with an adhesive, and forming the mix- 

 ture into a thin sheet. Natural binders are made by removing the midrib (strip- 

 ping) l/ from a thin, elastic, sound (free from holes) leaf of tobacco. The 

 stems and fine leaf particles, which are wasted in making the natural binder, 

 are used in the processed binder. Much of the tobacco bought for use as 

 natural binders is not actually used as binders, but is thrown out in sorting 

 or recovered as cuttings in making the cigar. These throwouts (called stem- 

 mings in the trade) and cuttings are a joint product with the binders, inevit- 

 ably resulting when any farmer grows tobacco to be used for binder purposes. 

 They have both been used to a large extent for scrap chewing tobacco. 



Growers of binder tobaccos (types $1, 52, 5^-> and 55) i*i "the Connecticut 

 Valley and in Wisconsin are much concerned over the effects of processed 

 binders on their market. About two-thirds of the binders have come from the 

 Connecticut Valley, nearly one-fourth from Wisconsin, and 7 to 10 percent from 

 nonbinder types, largely from Pennsylvania. The period of adjustment for the 

 growers from the high prices of World War II (and the inflation which followed) 

 to the lower prices after 19^8 was followed by the introduction of the proc- 

 essed binder in 1955 • 



Generally, the period 1950 to 195^- wa-s one of adjusting production to con- 

 sumption. Stocks were either stable or declining and production for the period 

 was less than domestic consumption and exports. Production averaged 51 million 

 pounds and disappearance was 5k. 6 million. Exports accounted for 2.7 million 

 pounds, leaving domestic consumption only slightly above production. The 

 supply of and demand for the cigar binder types was in good balance by 195^- • 



The concern among growers about the processed binders increased as the 

 tobacco trade journals carried information on their development and use during 

 195^ and 1955* A Connecticut growers' committee considered the possibilities 

 of the processed binders' becoming a factor in the binder market and recommended 

 that growers adjust to their use. One of the large cigar companies, in December 

 1955> announced it would use the processed binder in all its brands. 



l/ Not to be confused with stripping the leaves from the stalk. 



