39 



A summary of the dollar volume of business represented by purchasing, 

 service, and marketing for all cooperatives is shown in table 19. 



Table 19. --Dollar volume of cooperative looseleaf tobacco auctions 

 in Kentucky, North Carolina, Tennessee, and Virginia by 

 activity, 1958-62 













Purchasing 



Market 



ing 



Year 



Purchasing 



Serv 



ice 



and 



service 



activi 



ty 





activity 



activity 



acti 









Total 



business 



Total business 





Dollars 



Dollars 



Percent 



Percent 



1958 



101, 



197 



224 



,955 





0.7 



99 



,3 



1959 



115. 



399 



186 



,857 





0.7 



99 



.3 



1960 



104 



764 



150 



,901 





0.6 



99 



4 



1961 



120. 



270 



122 



,087 





0.5 



99 



.5 



1962 



154, 



970 



175 



,956 





0.6 



99 



.4 



Average 



119, 



320 



172 



,151 





0.6 



99 



.4 



BENEFITS AND PROBLEMS 



The operating experience of cooperative looseleaf auctions suggests 

 that these organizations play an important role in the auction system 

 of tobacco marketing. Their experience also points out some of the 

 problems involved in organizing and operating these facilities. 



Benefits 



The contribution of cooperative looseleaf auction warehouses can be 

 gauged in terms of two factors primarily responsible for their estab- 

 lishment. These were (1) growers 1 concern over rising costs of selling 

 at auction, and (2) growers' desire to obtain improved services. 



Over the years the auction selling of tobacco through cooperative ware- 

 houses has resulted in substantial savings to members. Some associa- 

 tions reported that they had, in effect, reduced auction sale charges 

 to patrons by more than 20 percent during their period of operation. 

 For all associations, patronage refunds averaged 10 percent. 



Producers have also obtained a variety of services from their ware- 

 houses comparable to, and sometimes exceeding, those offered by other 

 market facilities. These services usually include receiving, display- 

 ing, and selling tobacco. Additional services may include processing, 

 storing, obtaining advice on harvesting and handling practices best 

 adapted to their specific needs, and purchasing farm supplies. 



