We believe American tobacco is among the highest quality in the world. Because our premium brands require high-quality tobacco, we work to build strong relationships with America’s tobacco growers through our Tobacco Leaders Program.
American tobacco is the backbone of the cigarettes Philip Morris USA makes. A stable supply of U.S. tobacco is important to us because every Marlboro cigarette we sell is made predominantly of American tobacco. PM USA purchases tobacco from several thousand farmers concentrated primarily in five states.
As a major purchaser of American tobacco, we need sufficient amounts of the right qualities and grades to make our high-quality products. Nearly all of our domestic tobacco is purchased through our direct contracting program known as the Tobacco Leaders Program (TLP).
For more than 70 years, U.S. tobacco was brought to market through an auction system.
In 2000, we launched a new direct contracting program called the Tobacco Farmer Partnering Program, which changed long-standing traditions in the way tobacco was sold in this country. In the first year, we entered into agreements with burley farmers followed by direct contracting with flue-cured tobacco growers in 2001.
Now known as the TLP, the program is geared toward select producers to encourage consistent high quality, innovation, efficiency and open communications between the company and growers.
PM USA works side-by-side with America’s tobacco growers to:
- Promote the production of high-quality tobacco using responsible environmental and labor management practices
- Encourage innovation on the farm for greater efficiency and improved quality
- Understand the challenges growers face and advance solutions that make sense both for growers and our business
- University research. We actively support programs to advance U.S. tobacco production by working collaboratively with agricultural experts at land-grant universities and independent farmers. By doing so we can share insights and help growers manage risk and improve quality and production.
- Assistance with mechanization. Labor costs are a key input for burley tobacco growers, so PM USA has co-developed market preparation equipment to help reduce labor costs associated with growing burley tobacco.
- Grower development. A PM USA program called Taking Root invests in developing leaders and innovators among the next generation of growers. To strengthen its supply base, PM USA engages a select group of next generation growers, giving them the opportunity to participate in leadership development programs, receive a grant to support innovation in their farming operation and learn more about our business.
- Scholarships. Since 2000, PM USA has offered educational scholarships that recognize the importance of growers to our business. PM USA has awarded more than $2 million in educational scholarships to the families of tobacco growers.
