Tobacco: Southern Maryland – one-fifth to one-fourth of Southern Maryland tobacco crop is exported; disappearance down; production higher; supplies lower

Southern Maryland – one-fifth to one-fourth of Southern Maryland tobacco crop is exported; disappearance down; production higher; supplies lower – U.S. Dept. of Agriculture, Economic Research Service report

Southern Maryland tobacco (type 32), a light air-cured tobacco, goes almost entirely into cigarette production. From one-fifth to one-fourth of the crop is exported.

Disappearance Down

Disappearance of Maryland tobacco during October 1990-June 1991 totaled 22 million pounds, 3 million below a year earlier. Domestic use is down, but exports are up. Prices for the 1990 crop rose because of a good quality crop and shortening supplies of light air-cured tobacco. By January 1, carryover will decline to a record low from this year’s 19 million pounds.

Exports of Maryland tobacco were up 85 percent during the first 9 months of this marketing year to 4.1 million pounds. Despite the increase in exports, sales to two of the three largest traditional destinations–Switzerland and Germany–were lower. Sales to Belgium-Luxembourg (the other major market), Italy, and South Korea were up.

Production Higher; Supplies Lower

The crop is estimated at 17.2 million pounds, 5 percent above 1990. Production is likely up in both Maryland and Pennsylvania. Even with larger production, smaller carryin will reduce supplies.

The 1981 farm act prohibits growing and marketing Maryland tobacco in quota areas. However, quotas are not applicable to Pennsylvania seedleaf tobacco, so with seedleaf’s lower prices, some growers have changed to Maryland production. About 41 percent of total Maryland-type tobacco production will be grown in Pennsylvania in 1991.

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

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