26 



Associations handling burley and flue-cured tobacco generally estab- 

 lished auction warehouses in the markets which handle comparatively 

 large volumes. Of 61 local burley tobacco markets in the United States, 

 cooperatives operated auction warehouses in 15. Twelve of the 15 

 markets are ranked in the upper half of all burley markets, based on 

 sale volume handled. While cooperatives operated auction warehouse 

 facilities in only 3 of 94 local flue-cured tobacco markets, all 

 3 were among the 10 markets handling the largest volume of this type. 



Three types of tobacco comprise the dark air-cured crop: Green River, 

 Virginia Sun-Cured, and One Sucker. Cooperatives operate warehouse 

 facilities in markets handling the first two types. Of eight dark air- 

 cured tobacco markets, the two with cooperative warehouses rank fifth 

 and eighth on the basis of volume handled. The market handling Green 

 River tobacco ranks lowest among three markets handling this type, while 

 the market handling Virginia Sun-Cured ranks first among one major and 

 several minor markets in which this type is sold. 



The dark fire-cured tobacco crop is also comprised of three types: 

 Eastern District, Western District, and Virginia. One cooperative 

 handles this type of tobacco. It operates warehouses in all three 

 markets handling Virginia Dark-Fired tobacco. 



Allocation of Market Sale Volume 



Several factors influence the volume of tobacco handled by a coopera- 

 tive or private warehouse organization in a local market. These include 

 the number of the market's sale days allocated to the organization, the 

 number of hours per day during which tobacco may be auctioned, rate of 

 sales per hour, basket weight regulations, and number of sets of buyers 

 assigned to a market. 



The proportion of market warehouse sale floor space or market basket 

 capacity operated by an association normally determines the number of 

 sale days allocated to it. 



In the flue-cured area, markets usually observe a 5.5 hour sales day 

 which represents 2,200 baskets a day per set of buyers. A maximum 

 sales rate of 400 baskets an hour is maintained, and basket weight is 

 limited to 300 pounds. In the burley area, warehouses have the option 

 of selling on either a basket basis or a poundage basis. Those selling 

 on a basket basis hold sales for 3.5 hours daily at a rate of 360 baskets 

 an hour. Warehouses operating on a poundage basis are limited to sales 

 of 302,400 pounds of tobacco a day per set of buyers, with the 

 provision that sales cannot exceed 1,800 baskets daily. 



The number of sets of buyers assigned to a market affect the amount of 

 sale time which can be assigned to each warehouse in the market. For 

 example, a market with one set of buyers has to rotate the set among all 

 warehouses in the market. Assignment of an additional set effectively 

 doubles the amount of sale time which can be allocated to each market 

 warehouse. 



