How The Big Companies Buy Tobacco

[deathmetal]

I found this elucidating:
http://www.rjrt.com/wp-content/uploads/2015/03/2014-RJRT-Burley-Price-Schedule.pdf

 

[yaddy306]

That is very interesting.

So there are premium quality, good quality, and low quality tobaccos.

I wonder which ones end up where.

 

[iamn8]

I wonder which ones end up where.

... one way or another, all in the "ashtray". To a smoker, the whole world is an ashtray.

 

[deathmetal]

I imagine it relates to the profit anticipated from the end product.
This is different from "price."
For example, a cheap tobacco may have higher profit if it has higher margins and sales.
Conversely, a luxury tobacco may have higher profit if it has a high price, wide margin and decent sales.

 

[jpmcwjr]

Tips $2.09 "Premium quality dark-red, uniform color (shorter in length)"- the price of the best burley in 2014, wholesale, bulk.
Flyings $1.10 "Low quality tan and buff"- worst and cheapest tobacco.
I'd bet Virginias have a wider range.

 

[mawnansmiff]

Latakia $0.01 per ton "Low quality tan and buff"- worst and nastiest tobacco. :rofl:
Regards,
Jay.

 

[mso489]

There might be some sharp practices here and there, but generally I presume the higher priced tobaccos end up in the higher priced blends. Most business people know that repeat business is a key to sustained profits, and regular pipe smokers know what they're smoking. If it is not good, or just so-so, it stays right there in the jar, and we don't need to re-order it, as we all know. Cheapie tobacco is often decidedly blah. More pricey tobacco is often mighty tasty. And the placebo effect doesn't last when a pricey tobacco doesn't live up to its reputation.