35 



Information on market prices recieved by growers selling burley and 



flue-cured tobacco through cooperative and other warehouses was obtained 



for the 5-year period, 1953-57. It must be emphasized that the data 



presented only permit a comparison to be made of prices received at 



the first handler level. They do not permit a comparison to be made 



of final prices received since amounts returned to cooperative patrons 



in the form of patronage dividends have not been taken into consideration, 



During the overall period, 1953-57, average market price received by 

 growers selling first sale burley tobacco through cooperative auction 

 warehouses was slightly less than that received by growers selling 

 through private warehouses. Cooperative patrons received an average 

 price of $51.88 per hundredweight for first sale tobacco, compared to 

 $52.77 for non-patrons. 



In 1953 and 1954, 2 years of the period during which relatively low 

 prices were received on markets handling burley tobacco, cooperative 

 patrons received an average of $4 more per hundredweight than other 

 growers. Cooperative patrons received a lower average price for their 

 burley tobacco during each of the years of higher prices, 1955-57. 

 The greatest difference was in 1956, when private warehouse patrons 

 received $3.90 more per hundredweight for first sale burley tobacco. 



The difference in average first sale price received by growers selling 

 burley tobacco in cooperative and other auction warehouses was usually 

 small. Some variation in price was frequently due to cooperative 

 members selling their better grades of tobacco on private warehouse 

 floors during years of relatively high prices. During years when 

 lower prices prevailed, members felt that the difference in price 

 received in the two types of auction warehouses was not significant, 

 and thus delivered better tobacco grades to cooperative warehouses for 

 sale. 



During each of the 5 years, 1953-57, the average first sale price 

 received by cooperative patrons selling flue-cured tobacco was higher 

 than that received by growers selling this type through privately- 

 owned facilities. Cooperative patrons received $52.06 per hundredweight 

 compared to $50.31 per hundredweight for patrons of other warehouses, 

 a difference of $1.75. 



The greatest difference existed in 1953 when cooperative patrons received 

 an average of $3.00 more per hundredweight. The difference was smallest 

 in 1957 when they received an average of $1.05 above that received by 

 non-patrons. For the period 1953-57, lowest average first sale prices 

 were received in flue-cured tobacco markets during 1956. In 1956, the 

 average first sale received by growers selling through cooperative 

 facilities amounted to $50.33 compared to $48.66 for growers selling in 

 other market warehouses. 



