The centers obtained higher average prices for farmers who marketed their tobacco there and resulted in the placement of less tobacco under loan.
The centers were established in the flue-cured tobacco regions to give farmers a market, after many farmers contracted their tobacco directly to tobacco companies. The result was that many independent warehouses closed their doors, leaving many areas with no operating auction houses.
Through the middle of October, tobacco marketed at the centers averaged more than $1.76 per pound, as compared to just over $1.72 per pound for tobacco marketed at independent warehouses.
Some of the tobacco marketed at the Stabilization marketing centers was brought by farmers for various reasons from the contract centers being operated by the contracting companies.
According to information released by the co-op, plans call for the marketing centers to continue to operate.






