Topics for this issue include:
Crop Update
Suggestions For Storing Cured Tobacco To Maintain Quality
MH Residues
Southern Area Flue-Cured Tobacco Auctions- Weekly Comments
Southern Flue-Cured Contract Centers - Weeky Comments
Stabilization Operating Pilot Auction Marketing Centers
Barn Conversion Retrofit Status

Crop Update
According to Georgia Agricultural Statistics Service, as of last Monday County Agents estimated that 91 percent of the Georgia tobacco crop had been harvested. While some of the remaining tobacco is holding up well, some varieties tend to have more foliar disease damaging the leaf in the field. This situation was increased by recent afternoon rainfall which caused the leaf to be wet throughout the envening. Grower comments on prices have been very positive if they have contracted their crop as can be observed from the weekly Market News Reports below. Prices have maintained a wide difference between Auctioned tobacco and Contracted.

The remaining Auction markets which continue to operate have significantly reduced tobacco sell and sales are much less frequent than has been their routine. Although the season started out with good rainfall and good soil moisture prior to transplanting, most crops received little rainfall after transplanting until mid June when most of the state had significant rainfall. Some areas along the Florida line had some tobacco which was lost as a result of drowning. However, most Georgia growers anticipate producing nearly all their quota, with many growers anticipating excess production which they will not be allowed to sell due to the limited availability of unproduced quota.

Tobacco which is held until the next season should be closely managed to maintain the quality of the tobacco. Growers must take this responsibility seriously. Below are a few suggestions for maintaining the quality tobacco already produced.

Suggestions For Storing Cured Tobacco To Maintain Quality
Store carryover tobacco in curing barns in boxes or racks used for curing. Barns are the most sanitary facilities on the farm at the end of the curing cycle. Barn fans and heat can be used to manage moisture, insects and mold. Make regular inspections of stored tobacco with special attention following major weather changes. Avoid storing tobacco in compressed bales.

Any tobacco not stored in curing barns and containers should be stored as dry as possible in loosely filled NEW sheets which are not stacked over 2 sheets high. Cover sheeted tobacco with NEW sheets. Sanitation of the tobacco and the surroundings is critical. Avoid any possible contamination of carryover tobacco with insects (cigarette beetles and tobacco moths) from old tobacco sheets, OLD stored tobacco, tobacco trash or other sources of food for insects. Storage facilities other than curing barns should be cleaned thoroughly to remove tobacco trash, dust and insects from all cracks and crevices. Provide a moisture barrier under sheeted tobacco. Avoid storing sheets on concrete or asphalt.

Store only tobacco which has been cured in a barn with an indirect heat source as all tobacco will have to be certified as low nitrosamine in 2002. Only store tobacco in retrofitted barns to avoid exposure to exhaust gases when drying tobacco. Tobacco warehouses must be bonded and insured if they store tobacco belonging to more than one other person.

Consider the effort required to manage stored tobacco not stored on the farm. Most warehouses have cement or asphalt floors requiring tobacco to be stored on pallets to avoid absorption of moisture. Good management is required on the part of growers to maintain the quality and value of tobacco which is stored from one season to another. In general, tobacco should be stored in a clean, dry, insect free facility, such as a packhouse or bulk curing barn.

The costs of production, harvesting, and curing of carryover tobacco have already been invested and the carryover tobacco is additional profit for the producer if quality is maintained by proper storage. Care should be taken to insure that the tobacco is sufficiently dry when placed in storage. Storage facilities should be maintained insect free and the tobacco should be checked periodically to insure proper storage and the absence of insect or moisture damage.

If damaged tobacco is located, steps should be taken to minimize the amount of tobacco damaged.

To read the entire article on "STORING CURED TOBACCO TO MAINTAIN QUALITY" in the University of Georgia Tobacco Grower's Guide please go to the following link. http://www.georgiatobacco.com

MH Residues
As of the August 31, 2001 MH residue report, with 108 samples analyzed for the Tobacco Industry Leadership Group, MH residue levels now average 93 ppm across all belts.

Georgia-Florida type 14 is averaging 124 ppm.
South Carolina type 13 stands at 73 ppm.
North Carolina Border Belt type 13 is averaging 70 ppm.
North Carolina Eastern belt type 12 is averaging 109 ppm.
North Carolina Middle Belt type 11 is averaging 117 ppm.
North Carolina Old Belt type 11 is averaging 61 ppm.
Virginia Old Belt type 11 is averaging 41 ppm.

SOUTHERN AREA FLUE-CURED TOBACCO AUCTIONS TYPE 13 WEEK NO. 7 WEEKLY COMMENTS FOR THE WEEK ENDING, THURSDAY SEPTEMBER 6, 2001
A consistently good demand was shown for flue-cured tobacco, at Southern area markets, during the seventh week of auctions. Bid averages by grade were fairly steady, and loan receipts were lighter. Volume sold was up, indicating heavy sales at most markets. Auctions were held only three days, due to the holiday on Monday.

Auction Gross Sales by States Follow:

This week's general average of $184.21, was up $4.80 from the previous week. After 26 days last season, 140.7 million pounds averaged $171.90 per hundred. This week's resales of 367,341 pounds raised the season figure to 1,736,335 pounds. Southern Area contract sales reported through September 6, were 107,224,000 pounds averaging $184.16 per hundred. Grade bid averages showed no definite upward or downward trend this week.

In general, ripe leaf was steady, ranging from $186 to $192 per hundred pounds. Unripe leaf varied a few dollars from last week, bringing mostly $179 to $185. Cutters were steady to a little higher, at $163 to $178. Lugs were unchanged, selling from $158 to $165 in most cases.

Both quality and maturity recorded positive trends this week. Tobacco grading good quality gained 4 percentage points, accounting for 29 percent of all auctions. Sales classed as mature to mellow increased 5 points to 79 percent of tobacco on floors.

By group, leaf increased again this week and made up 68 percent of the volume. Percentages for the other groups were: smoking leaf 1, cutters 23, lugs 7, and various nondescript 1 percent. Tobacco placed under loan this week decreased to 14.6 percent of auction sales, lowering the season take to 15.4 percent. This compares to 7.1 percent delivered to the Flue-Cured Stabilization Corporation at the same point last year.

Auction bid averages per hundred pounds on several U.S. grades and comparisons follow:

U.S. Auction Change From
Grade Bid Previous Week
----- ------- -------------
B4F $192 Unchanged
B3K $192 Unchanged
B4K $186 Up $1
B3KF $179 Unchanged
B4KF $172 Down $1
B3KM $185 Down $1
B4KM $179 Down $1
C3F $178 Up $1
C4F $178 Up $1
C4KM $163 Unchanged
X3F $165 Unchanged
X4F $158 Unchanged
http://www.ams.usda.gov/marketnews.htm

GROSS SALES, TYPE 14 TOBACCO MARKET NEWS
SEPTEMBER 7, 2001 SALES DAY NO. 42
SOUTHERN FLUE-CURED CONTRACT CENTERS,
TYPE - 14 GROSS SALE REPORT FOR THURSDAY, 6-SEP-2001

http://www.ams.usda.gov/marketnews.htm

Stabilization Operating Pilot Auction-Marketing Centers
In July, Flue-Cured Tobacco Cooperative Stabilization Corporation is pleased to announce the formation of a pilot auction-marketing center in Wilson, NC for the 2001 flue-cured tobacco-marketing season. Again in August Flue- Cured Tobacco Cooperative Stabilization Corporation announced the formation of a pilot auction-marketing center in Statesboro, GA for the 2001 flue-cured tobacco-marketing season.

Flue-Cured Tobacco Cooperative Stabilization Corporation is the flue-cured tobacco farmer owned marketing association, which administers price support for flue-cured tobacco farmers under a contractual agreement with the United States Department of Agriculture.

The objective of these pilot projects is to collect information which will lead to the development of an ultra-modern, high volume marketing facility that can offer to both tobacco farmers and tobacco purchasers more choices when marketing or purchasing tobacco. One significant goal of this concept is to develop a financially self-sufficient, modern tobacco marketing center, which will afford reduced selling costs to tobacco farmers and reduced purchasing costs to tobacco purchasers.

The Stabilization Board of Directors chose to pursue the marketing center concept for the following reasons:
• to offer tobacco farmers and tobacco quota owners alternative marketing opportunities
• to offer selectivity of tobacco grades and qualities to tobacco purchasers
• to protect the export market
• to protect the asset value of tobacco quota and
• to provide a tobacco farmer and purchaser friendly environment.

Stabilization entered into agreements with the operators of Barnes Tobacco Warehouse and Liberty Tobacco Warehouse of Wilson, NC and with Brannen's Tobacco Warehouse of Statesboro, GA to acquire the rights to their 2001 designations and with their assistance and expertise, provide a quality service to tobacco farmers and purchasers. Stabilization has leased the Liberty Tobacco Warehouse facility in Wilson and retained its name and its 632 designation number for the 2001 flue-cured tobacco-marketing season.

In Statesboro Stabilization has leased Brannen's Tobacco Warehouse facility and retained its name and its 287 designation number for the 2001 flue-cured tobacco- marketing season. As Stabilization ventures into this pilot marketing center project and it is accepted and patronized by farmers and purchasers, Stabilization’s plans are to make this concept available in the other areas that produce flue-cured tobacco in order to provide the same opportunities to all of its farmer- members.

Barn Conversion Retrofit Status
As of August 31, 2001, the Retrofit Reimbursement Program had mailed checks to reimburse patial expenses by growers for a total of 35,067 barns. Average payments are running $1,904 per retrofit for average expenses of $3,704. Total reimbursement paid out amounts to $66,773,627. In order to qualify for reimbursement for retrofitting the retrofit must have been installed in working order by the end of the day on June 30, 2001 and the application received by Stabilization by July 31, 2001. Numbers of barns for which reimbursement has been received are as follows:
NC - 24,056;
SC - 3,854;
VA - 2,493;
GA - 4,026;
FL - 638;
for a total of 35, 067.