The company contracts with suppliers, primarily small farms, to grow tobacco using crop inputs such as seeds, fertilizer, and pesticides that the company purchases and provides. Suppliers are contractually required to sell the tobacco crop to the company if it meets specified standards. The company advances the cost of inputs plus a mark-up and interest, recognized upon delivery of the tobacco. Advances may also include financing for suppliers' capital assets. The agronomy team offers technical assistance to suppliers during the growing and curing seasons. The company monitors suppliers' ability to deliver tobacco and adjusts costs if advances become unrecoverable. Tobacco is processed in company-owned and third-party facilities near principal sourcing locations worldwide, including Argentina, Brazil, China, India, Indonesia, Jordan, North Macedonia, Malawi, Tanzania, Thailand, Turkey, the United States, and Zimbabwe. Processed tobacco is packed in various forms for storage and shipment.
Pyxus International Inc's Comment on Supply Chain
The company contracts with suppliers, primarily small farms, to grow tobacco using crop inputs such as seeds, fertilizer, and pesticides that the company purchases and provides. Suppliers are contractually required to sell the tobacco crop to the company if it meets specified standards. The company advances the cost of inputs plus a mark-up and interest, recognized upon delivery of the tobacco. Advances may also include financing for suppliers' capital assets. The agronomy team offers technical assistance to suppliers during the growing and curing seasons. The company monitors suppliers' ability to deliver tobacco and adjusts costs if advances become unrecoverable. Tobacco is processed in company-owned and third-party facilities near principal sourcing locations worldwide, including Argentina, Brazil, China, India, Indonesia, Jordan, North Macedonia, Malawi, Tanzania, Thailand, Turkey, the United States, and Zimbabwe. Processed tobacco is packed in various forms for storage and shipment.
Sources:
Pyxus International Inc 's official press releases and regulatory filings; CSIMarket.com's supply-chain research; and the financial filings and press releases of other companies cited in this report.
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