LEXINGTON, Ky. — After 19 years as CEO of the Burley Tobacco Growers Cooperative Assoc., Danny McKinney was asked to resign that position by the co-op’s board of directors during a meeting on Dec. 29.

A paper ballot was taken asking for his resignation. No specific reason was given for his dismissal with the co-op releasing a statement only saying that McKinney would be “retiring” and the group’s vice president of leaf, Scott Althauser, would take over the role of acting director.

Althauser, who has worked for the co-op for more than 14 years, remarked that at this time, the group was focusing on the future. “Right now we want to provide for our members and keep plotting forward,” Althauser said.

Doug Stephan, co-op attorney said a provision between the board and McKinney stated that either side could ask for a 30-day notice of dismissal, and that to his knowledge there was no wrong-doing on the part of McKinney that spurred the request.

“I heard board members say nothing personal other than they had great respect for McKinney and wanted to clarify that there was no wrong-doing on his part. He’s a fine person,” said Stephan. “The board respects the work Danny has done over the many years he has served.”

McKinney headed the organization at a time when anti-smoking campaigns and lawsuits drove up the cost of tobacco products and reduced the demand for tobacco all across the country.

The co-op serves producers in four other states besides Kentucky including Missouri, West Virginia, Ohio and Indiana and got its start in 1921 as a way for members to market their product and address the problem of low prices.

The group’s traditional role has been to purchase unsold tobacco at auctions and stored it in a reserve pool to be sold at a later date. The quota buyout in 2004 left the tobacco business in a drastic state of change which has affected the amount of surplus burley and the role of the co-op itself. Most tobacco now is sold under a contract basis between individual growers and the tobacco companies instead of the old traditional auctions.

Althauser told Farm World last month in an interview that good tobacco will find its way to buyers, and the warehouse sales offer the producer options.

“All good tobacco has a home,’ he said. “Even with the supply of burley being up, we’re still not growing what the market needs. These sales offer farmers’ choices and we have growers that want auctions.”

While tobacco’s status as the number one ag commodity in the state has fallen over the past few years, revenue for the product still remains substantial with over $342 million in cash receipts being recorded in 2005 and according to 2004 statistics, tobacco still lead state ag exports with $266 million.

Althauser said the overseas business in tobacco is important to local growers and something the co-op is working on as well as other plans for the future.

“We’re working on a business plan for future activities and international trade has been important to us,” said Althauser. “We’re dealing with China, who is buying more U.S. burley as well as Vietnam and Indonesia. We want to sell tobacco and as long as companies are buying U.S. burley, it is benefiting our farmers in the world market.”

The co-op is slated to pick a successor to McKinney but Althauser declined to comment on whether he thought that would be him or someone else.

Daniel Green, comptroller for the co-op will take over as secretary-treasurer, a position McKinney also filled.