LOOSELEAF TOBACCO COOPERATIVE AUCTIONS 

 IN THE UNITED STATES 



By Bruce L. Swanson 

 Special Crops Branch 

 Marketing Division 



More than 90 percent of the tobacco produced in the United States sells 

 through looseleaf auction markets. 



Growers interested in improving these markets have formed organizations 

 of their own to operate warehouses in various local markets throughout 

 the major tobacco belts. Fifteen farmer associations in Kentucky, 

 North Carolina, Tennessee, and Virginia now operate 45 looseleaf auction 

 warehouses in 23 local markets. 



This study provides information on the organization and operation of 

 these cooperative warehouses. Study findings can help patrons, directors, 

 and employees better understand the contributions and functions of 

 their associations. In addition, findings can be beneficial to these 

 cooperatives in comparing their operations, and to growers considering 

 the formation of similar organizations. 



Interviews with cooperative management or other key personnel provided 

 data on certain organizational and operational characteristics. The 

 associations' annual financial statements, published research findings 

 on tobacco production and marketing, and information from others in 

 the tobacco trade, supplemented these data. 



The report is divided into three main sections. The first section, 

 Development of Cooperative Auction Warehouses, presents background 

 material on the establishment of these associations, including the 

 preliminary steps taken before their organizations, sources of assistance, 

 and method of financing. 



Organizational features of existing looseleaf tobacco auction coopera- 

 tives are considered in the second section. Trends in membership, 

 composition and functions of the boards of directors, characteristics 

 and duties of managers, and number of employees, are among the items 

 discussed. 



The concluding section of the report summarizes the associations 1 

 tobacco marketing activities. Attention is first given to the warehouse 

 facilities and equipment operated by the associations. Next is con- 

 sidered characteristics of the markets in which the cooperatives operate . 

 This is followed by a discussion of cooperative marketing activities 

 during a 10-year period 1952-53 to 1961-62. 



