Tobacco: Dark air-cured – domestic use and exports down for dark air-cured tobacco; supplies likely to decline

Dark air-cured – domestic use and exports down for dark air-cured tobacco; supplies likely to decline – U.S. Dept. of Agriculture, Economic Research Service report

Dark air-cured tobacco (types 35-37) is used in plug and twist chewing tobacco, snuff, and to some extent, smoking tobacco and cigars. Production and use have declined by more than half over the last two decades. Exports usually account for 10 to 20 percent of total use.

Use Down

Disappearance of dark air-cured tobacco during October-June totaled 8.9 million pounds, 1.7 million pounds below a year earlier. Both domestic use and exports were down. Domestic use declined because of a 9-percent reduction in output of plug chewing and a 11.5 percent reduction in smoking tobacco production in the first three quarters. Even with a larger crop, this season’s leaf prices rose from 1989/90’s.

For the 1990/91 season, total disappearance may decline from last year’s 13.1 million pounds. This would result in a carryover of about 26.7 million pounds, about 3.8 million below October 1990 (table 25).

Supplies Likely To Decline

The September estimate of this year’s dark air-cured crop is 9.1 million pounds–19 percent above last year–because acreage for harvest is up. Even with a larger crop, the smaller carryover will likely reduce 1991/92 supplies about 2.3 million pounds from this year’s 38 million. Next season’s supplies represent about 3.2 times this season’s estimated use, which is a considerable reduction from a few years ago. The supply of good quality dark air-cured tobacco is short and the loan inventory has been depleted.

COPYRIGHT 1991 For more information, contact US Department of Agriculture Economic Research Service. Phone: 1-800-999-6779 (8:30-5:00 ET).

COPYRIGHT 2004 Gale Group