future of the cooperative daniel green. history of the cooperative burley tobacco growers...
TRANSCRIPT
![Page 1: Future of the Cooperative Daniel Green. History of the Cooperative Burley Tobacco Growers Cooperative U.S. was primary producer of burley Great instability,](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649f2e5503460f94c4845e/html5/thumbnails/1.jpg)
Future of the CooperativeFuture of the Cooperative
Daniel GreenDaniel Green
![Page 2: Future of the Cooperative Daniel Green. History of the Cooperative Burley Tobacco Growers Cooperative U.S. was primary producer of burley Great instability,](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649f2e5503460f94c4845e/html5/thumbnails/2.jpg)
History of the Cooperative
Burley Tobacco Growers CooperativeBurley Tobacco Growers Cooperative
• U.S. was primary producer of burley
• Great instability, uncertainty in prices
• Few buyers– Low prices– Producers unable to cover expenses
![Page 3: Future of the Cooperative Daniel Green. History of the Cooperative Burley Tobacco Growers Cooperative U.S. was primary producer of burley Great instability,](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649f2e5503460f94c4845e/html5/thumbnails/3.jpg)
• Contract arrangement for 5 years for at least 75% production
• 1921, Burley Cooperative formed– 124 warehouses purchased or leased for
receiving centers– contracted and purchased re-drying plants (14) – built storage facilities
Original System
Burley Tobacco Growers CooperativeBurley Tobacco Growers Cooperative
![Page 4: Future of the Cooperative Daniel Green. History of the Cooperative Burley Tobacco Growers Cooperative U.S. was primary producer of burley Great instability,](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649f2e5503460f94c4845e/html5/thumbnails/4.jpg)
• Very successful, handling 940 million pounds over 5 years
• Problems– no limit on production/sales
– problems with contract breaching
• Contract ended in 1926, membership was 108,000, but interest faded, prices were better
• No new contracts were signed
Original System
Burley Tobacco Growers CooperativeBurley Tobacco Growers Cooperative
![Page 5: Future of the Cooperative Daniel Green. History of the Cooperative Burley Tobacco Growers Cooperative U.S. was primary producer of burley Great instability,](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649f2e5503460f94c4845e/html5/thumbnails/5.jpg)
• Over 60 years, very successful program
• Stable price, unstable supplies
• Cooperative borrows money from CCC and pays farmer
• Tobacco is processed and sold and loan is repaid
• Minimal cost to taxpayers
1938 AAA System
Burley Tobacco Growers CooperativeBurley Tobacco Growers Cooperative
![Page 6: Future of the Cooperative Daniel Green. History of the Cooperative Burley Tobacco Growers Cooperative U.S. was primary producer of burley Great instability,](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649f2e5503460f94c4845e/html5/thumbnails/6.jpg)
Problem
Burley Tobacco Growers CooperativeBurley Tobacco Growers Cooperative
GROWERS and QUOTA OWNERS
![Page 7: Future of the Cooperative Daniel Green. History of the Cooperative Burley Tobacco Growers Cooperative U.S. was primary producer of burley Great instability,](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649f2e5503460f94c4845e/html5/thumbnails/7.jpg)
Impact of the Buyout on Numbers
Burley Tobacco Growers CooperativeBurley Tobacco Growers Cooperative
• What can be accomplished for tobacco in the post-buyout environment?
Those Out
Growers Left
![Page 8: Future of the Cooperative Daniel Green. History of the Cooperative Burley Tobacco Growers Cooperative U.S. was primary producer of burley Great instability,](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649f2e5503460f94c4845e/html5/thumbnails/8.jpg)
Areas of Priority
Burley Tobacco Growers CooperativeBurley Tobacco Growers Cooperative
• Management of Inventory• Grower Organization and Advocacy• Export Promotion and Market Expansion• Contracting Support• Alternative Marketing Options• Production Technologies and Infrastructure Improvement• Communication, Education and Research Support• Enhanced Crop Insurance
![Page 9: Future of the Cooperative Daniel Green. History of the Cooperative Burley Tobacco Growers Cooperative U.S. was primary producer of burley Great instability,](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649f2e5503460f94c4845e/html5/thumbnails/9.jpg)
• BTGCA responsible for a portion of 160 million pounds of pool inventory after buyout
• Goal: Maximize benefit from stocks while minimizing negative impact on the market.
• No more than 20% domestic each year
• Focus on non-traditional markets
Management of Inventory
Burley Tobacco Growers CooperativeBurley Tobacco Growers Cooperative
![Page 10: Future of the Cooperative Daniel Green. History of the Cooperative Burley Tobacco Growers Cooperative U.S. was primary producer of burley Great instability,](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649f2e5503460f94c4845e/html5/thumbnails/10.jpg)
• Better organization of growers is essential with smaller numbers– Locating existing burley growers, obtaining
email addresses, etc.– Redistricting our board representatives based
on where tobacco is being produced– Effective system for alerting tobacco growers
and to get involved in issues
Grower Organization and Advocacy
Burley Tobacco Growers CooperativeBurley Tobacco Growers Cooperative
![Page 11: Future of the Cooperative Daniel Green. History of the Cooperative Burley Tobacco Growers Cooperative U.S. was primary producer of burley Great instability,](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649f2e5503460f94c4845e/html5/thumbnails/11.jpg)
• The political environment and society will become increasingly malevolent/restrictive towards tobacco
• New restrictions and possible FDA oversight• Keeping any potential production regulations
under USDA, trade, health issues, labor issues, disaster assistance, federal crop insurance, etc.
Grower Organization and Advocacy
Burley Tobacco Growers CooperativeBurley Tobacco Growers Cooperative
![Page 12: Future of the Cooperative Daniel Green. History of the Cooperative Burley Tobacco Growers Cooperative U.S. was primary producer of burley Great instability,](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649f2e5503460f94c4845e/html5/thumbnails/12.jpg)
• Great opportunities exist for burley with post-buyout prices
• Using current inventories to develop new markets
• Serving as an agent for U.S. growers
Export Promotion and Expansion
Burley Tobacco Growers CooperativeBurley Tobacco Growers Cooperative
![Page 13: Future of the Cooperative Daniel Green. History of the Cooperative Burley Tobacco Growers Cooperative U.S. was primary producer of burley Great instability,](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649f2e5503460f94c4845e/html5/thumbnails/13.jpg)
• Toll-free contract number for info– Help with general information about contracts– Locations of contract stations– Contract prices & terms– Legal assistance
Contracting Support
Burley Tobacco Growers CooperativeBurley Tobacco Growers Cooperative
![Page 14: Future of the Cooperative Daniel Green. History of the Cooperative Burley Tobacco Growers Cooperative U.S. was primary producer of burley Great instability,](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649f2e5503460f94c4845e/html5/thumbnails/14.jpg)
• Tobacco that is not contracted
• Tobacco not accepted by contractor for various reasons
Alternative Marketing Options
Burley Tobacco Growers CooperativeBurley Tobacco Growers Cooperative
![Page 15: Future of the Cooperative Daniel Green. History of the Cooperative Burley Tobacco Growers Cooperative U.S. was primary producer of burley Great instability,](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649f2e5503460f94c4845e/html5/thumbnails/15.jpg)
• “Clearinghouse” type market– Tobacco not sold on contract– Damaged tobacco– Overproduction and undesirable stalk
positions?
Alternative Marketing Options
Burley Tobacco Growers CooperativeBurley Tobacco Growers Cooperative
![Page 16: Future of the Cooperative Daniel Green. History of the Cooperative Burley Tobacco Growers Cooperative U.S. was primary producer of burley Great instability,](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649f2e5503460f94c4845e/html5/thumbnails/16.jpg)
• Alternative contracts– Replenishing supply of inventory– Adding value to the market– Specific varieties/characteristics– Other uses – ethanol, pharmaceutical,
etc.??
Alternative Marketing Options
Burley Tobacco Growers CooperativeBurley Tobacco Growers Cooperative
![Page 17: Future of the Cooperative Daniel Green. History of the Cooperative Burley Tobacco Growers Cooperative U.S. was primary producer of burley Great instability,](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649f2e5503460f94c4845e/html5/thumbnails/17.jpg)
• Investing $3.5 million in infrastructure improvement program
• Improving competitiveness in new market environment
• Sustaining identity as world’s premier producer of quality burley
• Retaining global leadership position in tobacco production
Technology and Infrastructure
Burley Tobacco Growers CooperativeBurley Tobacco Growers Cooperative
![Page 18: Future of the Cooperative Daniel Green. History of the Cooperative Burley Tobacco Growers Cooperative U.S. was primary producer of burley Great instability,](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649f2e5503460f94c4845e/html5/thumbnails/18.jpg)
• Helping get information to producers– Meetings, media, phone, internet, mail, etc.
• Support for expansion and increased efficiency in tobacco production
• Support for new research and technology development
Communication, Education & Research
Burley Tobacco Growers CooperativeBurley Tobacco Growers Cooperative
![Page 19: Future of the Cooperative Daniel Green. History of the Cooperative Burley Tobacco Growers Cooperative U.S. was primary producer of burley Great instability,](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649f2e5503460f94c4845e/html5/thumbnails/19.jpg)
• Weather risk management products for tobacco?– Enhancing opportunities by insuring quality
Enhanced Risk Protection
Burley Tobacco Growers CooperativeBurley Tobacco Growers Cooperative
![Page 20: Future of the Cooperative Daniel Green. History of the Cooperative Burley Tobacco Growers Cooperative U.S. was primary producer of burley Great instability,](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649f2e5503460f94c4845e/html5/thumbnails/20.jpg)
• Services must provide value to membership and contribute something new
• Tobacco Summit – October 8-9, Savannah, GA
Summary
Burley Tobacco Growers CooperativeBurley Tobacco Growers Cooperative
![Page 21: Future of the Cooperative Daniel Green. History of the Cooperative Burley Tobacco Growers Cooperative U.S. was primary producer of burley Great instability,](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649f2e5503460f94c4845e/html5/thumbnails/21.jpg)
http://www.burleytobacco.com