Year operations 

 began 



Number of 

 associations 



1928 1 



1932 1 



1945 1 



1946 1 



1948 2 



1949 2 

 1951 1 



1953 1 



1954 3 



1955 2 



As of 1961-62, auction selling of tobacco by producer cooperatives 

 was an important activity. These associations handled about 20 per- 

 cent of the total volume of tobacco auctioned in markets where they 

 operated in that season. During the 10 marketing seasons, 1952-53 

 through 1961-62, they handled an average annual volume of 83.3 million 

 pounds. The markets in which cooperative warehouses operated and the 

 principal type of tobacco handled are shown in figure 1. 



Procedures Followed 



The specific steps followed in planning and developing each auction 

 association varied considerably. Some cooperatives were the offspring 

 of previously existing associations. Others were an initial attempt 

 on the part of growers to develop improved marketing conditions. Atten- 

 tion will be focused only on tho6e factors common to the organization 

 of all associations. 



When considering the establishment of a typical grower-owned and 

 operated looseleaf tobacco auction, the organizers first evaluated: 

 (1) The quantity and quality of tobacco available from potential members 

 and nonmembers, (2) the extent to which buyers were willing to patronize 

 the association's facilities, (3) the availability of capable manage- 

 ment and an adequate labor force, and (4) required capital and possible 

 sources . 



If the initial survey suggested that cooperative warehouse facilities 

 be established, a formal plan of organization was adopted. Potential 

 members held meetings and appointed organization committees to consider 

 various problem areas associated with initiating the new enterprise. 



