Philip Morris Could Close Tobacco Receiving Terminal in Midway

Tennessee tobacco growers are expecting to hear bad news this week after many years of decreasing sales. They are concerned that Philip Morris will close its main factory in Northeast. For years, Greene County produced the largest quantities of burley tobacco. But by 2010 the number of farms cultivating this sort of tobacco has reduced significantly. The Philip Morris receiving terminal in Midway still takes in 6,000,000 pounds of burley tobacco each year, the main part of it is brought from Upper East Tennessee and Southwest Virginia.

“We already calculated that we could face approximately a $10.5 million in sales lost if this receiving terminal closes,” Jonathan Cavin said. According to Cavin, at present 138 farmers are using this station. They are concerned that Philip Morris and its parent company Altria Group could close it force them 175 miles north to Danville, Kentucky. “If they really close it, it would cost me hundreds of dollars in fuel and other transportation costs against an already close margin of profit,” John Litz, said.

For many Greene County tobacco farmers, burley tobacco is not only a source of income; it is something that has passed from generation to generation. “My great grandfather started to grow burley tobacco, now my father and I continue to keep the ball rolling,” Cavin said. Cavin said that even if the terminal closes, his farm won’t be affected. He is mostly worried about those farmers who have less than three acres and who do not produce enough tobacco that will justify the long turnaround. Tobacco growers already received calls from Altria these days. The company plans to conduct a meeting; however company’s representatives do not specify what it will cover.

Local and state officials were not informed about nay plans to close the Midway terminal. “My colleagues in the parliament and I will try to cooperate with our federal representatives as well as with the Altria Group in order to help our tobacco growers,” said State Republican David Hawk. According to Jody Lassiter from the Danville Economic Development Partnership, the Philip Morris receiving terminal opened in 2010, which currently is considered one of the most profitable and efficient facilities. “It is about a 50,000 square factory, which was before a usual industrial facility, and then they have done a lot of changes in its interior, and not only,” Lassiter said. Lassiter added that Danville terminal could easily cope with additional 6,000,000 pounds of tobacco per year. “However I would be very surprised if Philip Morris does that,” he concluded.