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LIBRARY 



CURRE"'T ser^lAL RfCORD 



^ SFP14195S ^ 



Better Marketing Jp^^j^arYlandTobclcco 



tment or agriculture 

 - More Income^Tor Growers - 



Resales of tobacco on Maryland auctions in 1955 

 brought warehousemen and speciilators a half million 

 dollars more than they paid farmers for the tobacco. 



These buyers bought ard resold nearly 6 million of 

 the 37 million pounds sold by farmers on the auctions in 

 1955. In addition to taking advantage of price fluctua- 

 tions, these buyers put much of the tobacco into more ' 

 salable condition by repacking and sorting. 



This repacking and sorting accounted for a part of the 11 cent^^r pound difference between 

 the buying price and selling price of resale tobacco, indicating that growers could have received 

 more income from their tobacco through more careful preparation for market. 



Resales have increased sharply since 1950. In 1955, they were 50 percent larger than in 

 1950, both in total volume and in proportion to net sales. Not only have resales increased rela- 

 tive to earlier years on the Maryland markets, but they have increased relative to resales on the 

 flue-cured and burley markets (table 1), 



Table 1, --Tobacco resales at Maryland looseleaf auctions, 1950 to 1955 (crops of I9I4.9 to 195U), 

 and comparison with percent resales for flue-cured and burley 



Year 



Maryland 



Flue-cured 



Btirley 



1950. 

 1951. 

 1952. 

 1953. 

 195U. 

 1955. 



1,000 pounds 



Percent 



3,B67 



10,8 



3,323 



9,6 



U,U28 



11.6 



5,228 



15,0 



5,112 



11;.2 



5,813 



15.6 



Percent 

 10.2 



9.2 

 10.9 

 11.3 

 11.9 



7.7 



Percent 

 6,2 



5.U 

 U.9 

 6.3 

 5,2 

 3.6 p 



Source: Tobacco Division, MS. 



p Preliminary 



Pxguie l,-=»Good tobacco marketing starts with 

 good preparation. 



Resales brought warehousemen and specu- 

 lators 1509,000 above the cost of their total 

 purchases, in addition to leaving them 200,000 

 pounds still to resell. Warehousemen resold 

 the largest amount of tobacco, but speculators' 

 margins were widest. Speculators sold for an 

 average of .'|13,68 a hundredweight more than 

 they had paid for the tobacco. Their total 

 margin was $265,000, Warehousemen's resales 

 averaged $7,90 a hundred above their purchase 

 price. Their total margin was $2l4ij,,000. These 

 total margins are not net profit. Handling 

 costs, including any losses of tobacco, must be 

 paid for out of these totals (table 2), 



Ifriited States Department of Agricultiure, 



Washington, D. C, 

 Agriculture-Washington July 1956 AMS-127 



