Intrinsic Value of the U.S. Flue-Cured Crop
Beyond being the most compliant and sustainable premium tobacco crop with the most secure origin in the world for premium tobacco, the U.S. flue-cured crop is also known and recognized for a significant number of intrinsic values that it brings to customers and their products. Under today’s heightened regulatory environment and the elimination of additives, there is a growing demand for natural, high-flavor tobaccos grown under strict and compliant agricultural practices.
Neither manufacturers nor leaf suppliers have to finance the crop, nor must they bear the costs of bad debt. They do not have to pay the overhead for teams of agronomists and field technicians associated with tobacco of other origins. Independent audit results show that child labor is virtually nonexistent in the U.S. flue-cured crop, as demonstrated through the GAP Connections audit program.
The U.S. flue-cured crop from USTC is produced by the most qualified, best-trained growers on privately owned family farms that meet government standards. Growers adhere to stringent record-keeping for traceability and their tobacco is cured in barns that are regularly tested. Deforestation is also a non-issue in the U.S., since production is done under sustainable conditions. All of these costs are borne by U.S. growers and embedded in the green price of tobacco. In addition, being U.S. dollar-based, USTC spares manufacturers from incurring the cost of currency risk associated with many competing tobacco origins. Buyers can reduce their sourcing footprint, recognizing that it makes little sense to source tobacco from 30+ different origins when they can deal with USTC instead.
As the conventional cigarette market evolves into the next generation of reduced risk products, the U.S. is uniquely positioned to satisfy customers’ future needs. More and more consumers will choose their product based on issues important to them, such as its impact on the environment, the planet and its people.
In the U.S., political stability, food security, and the availability of natural resources help mitigate supply interruption and allow predictability and continuity in this core market. The intrinsic value of the U.S. flue-cured crop will help ensure that demand remains strong.