Drought, Coldiretti-Philip Morris Italy agreement for Italian tobacco

Coldiretti and Philip Morris Italia sign the annual supply chain agreement to guarantee the continuity of investments in Italian tobacco diffusion in the countryside of digital and precision farming systems for energy saving and the reduction of up to 50% of the use of water. A measure of particular importance, especially in a phase characterized by drought that cuts crops and explodes the costs of growing tobacco and in the wake of increases in energy and raw materials also linked to the conflict in Ukraine.

The agreement was signed at Palazzo Rospigliosi in Rome in the presence, among others, of the president of Coldiretti Ettore Prandini, of the president and CEO of Philip Morris Italy Marco Hannappel, of the Minister of Agricultural, Food and Forestry Policies Stefano Patuanelli, of the undersecretary of State for Economy and Finance, Federico Freni, of the president of the Umbria Region, Donatella Tesei, of the vice-president and councilor for agricultural policies of the Umbria Region, Roberto Morroni, of the Councilor for Agriculture of the Veneto Region, Federico Caner and of the ‘Councilor for Agriculture of the Campania Region, Nicola Caputo.

Today’s signature is part of a long-term agreement that it provides multi-year investments connected with the activity of the Italian supply chain in the production, since 2014, of innovative smoke-free inhalation tobacco productswhich made it possible to stipulate integrated supply chain agreements, in support of a national supply chain that is today the most important in Europe, with around 50,000 employees.

In particular, as regards 2022, the agreement provides for the purchase of raw tobacco for volumes of over 20,000 tons (approximately 50% of Italian tobacco). The agreement also takes into account the new critical issues in the agricultural sector and marks a further shared commitment to disseminate good cultivation practices and management synergies in the supply chainwith the aim of giving continuity to production and investing in sustainability and digitalization, contributing to the eco-energy and environmental sustainability of cultivation, reducing the use of pesticides and fertilizers and reducing CO2 emissions from the agricultural supply chain.

An important commitment also for the relaunch of the sector in view of the implementation of the reform of the Common Agricultural Policy (CAP) and a first step to activate further initiatives aimed at making a supply chain of great importance from an economic and employment point of view more and more efficient for i territori coinvolti.

Furthermore, it represents an important commitment at a time of uncertainty for the future of the entire sector, also in light of the debates underway in recent months at a European level that could generate significant negative impacts on the Italian agro-industrial sectors.

The crisis aggravated by the war in Ukraine can only be faced with the co-responsibility of the entire supply chain and the initiative taken as part of the agreement signed in the tobacco sector represents an important signal for the entire agri-food system “said the President of Coldiretti, Ettore Prandiniunderlining “the importance of interventions capable of coping with increases in unsustainable costs for agricultural businesses that risk compromising crops with an impact on the economy, environment and work”.

We continue to support the Italian Tobacchic supply chain together with Coldiretti in a concrete and tangible way, more and more convinced than a logic of integrated supply chain is the only one – as well as the best – road to followas we have been doing for over ten years now, “he said Marco Hannappelmanaging director and president of Philip Morris Italia, who added: “it is essential, especially in a delicate phase like the current one”.

The supply chain agreement in the tobacco sector has a multi-year duration and was signed between Coldiretti and Philip Morris, who undertook to purchase about 50% of the tobacco produced in Italy, thanks to the collaboration with about 1000 farms operating mainly in Campania. , Umbria, Veneto and Tuscany thus guaranteeing the possibility of implementing a medium-long term strategic planning and economic sustainability for the entire Italian tobacco supply chain.

Philip Morris Italia’s investments in the Italian agricultural supply chain, equal to approximately 100 million euros for 2022, will have an estimated direct, indirect and induced employment impact in Italy of up to 28,700 people (of which up to 9,200 in Veneto, up to 9,500 in Umbria, up to 10,000 in Campania). The estimated direct, indirect and induced economic impact of the agreements for the year 2022 will be 75 million euros in Veneto, 77 million in Umbria and 82 million in Campania.

Overall, the collaboration agreements signed by Philip Morris Italia with the Ministry of Agriculture and Coldiretti starting from the early 2000s have generated agricultural investments of over two billion euros in total for the benefit of the Italian tobacco industry.