Philip Morris Italia and Coldiretti new measures to support the Italian tobacco supply chain

To ensure timely responses and solutions to immediate critical issues and pursue the sustainability path of the supply chain

Philip Morris Italia and Coldiretti still alongside producers with a new provision to support the Italian tobacco supply chain. There are two measures for the benefit of growers: the first provides an increase in the prices of Virginia tobacco which allows to support producers in a moment of maximum need determined by expensive energy. The second, the early disbursement of the contribution envisaged by the contract linked to the eco-energy sustainability parameters of the supply chain.

The goal is to guarantee timely responses and solutions through which to deal with the critical issues that have emerged in recent months, from adverse weather events to the difficulties due to the energy crisis and the cash flow available to producers, in this period where the greatest impact on expenses materializes. Last February Philip Morris Italia and Coldiretti had signed a ‘crop protection’ agreement with which to face the energy price increases: with these last two measures, the additional investment by Philip Morris rises to 11 million euros.

“Once again we are present and close to the tobacco supply chain and to the thousands of people who work there. In such a delicate phase we do our part to give immediate certainty and create the conditions to continue along the path of sustainability already undertaken for years. with Coldiretti and the agricultural enterprises “he affirms Cesare Trippella, Head of Leaf Eu by Philip Morris. “We are aware that the eco-energy and digital transition process is necessary to face the challenges of the medium term. – He adds – At the same time, we must work with the entire supply chain, to implement optimization and simplification initiatives aimed at mitigating the impacts of future economic situations and thus remain competitive in the international context “.

“The economic interventions implemented represent a gesture of concrete responsibility on the part of Philip Morris and an important signal of attention for farms in this moment of great uncertainty and instability; in fact, we are witnessing a continuous increase in production costs, in particular energy “he said Gennarino Masiello, president of the National Tobacco Organization Italy and national vice president of Coldiretti. “All of this, it is important to remember, is achieved within the framework of a supply chain agreement between Coldiretti and Philip Morris that is unparalleled in the tobacco sector, where investments in quality, innovation, digital transition and environmental sustainability are continually stimulated. in this historical phase it is important that the institutions also strengthen their contribution to the sector to safeguard the economic and employment values ​​in the various territories “, concluded President Masiello.

The measures implemented are part of the strategic partnership launched by Philip Morris since the early 2000s with the Ministry of Agriculture, Food and Forestry, as well as for over 10 years with Coldiretti, through investments of over two billion euros – up to 100 million every year – in the Italian tobacco agricultural chain, the most important in Europe in terms of production volumes and number of employees (about 50,000 in total).

Philip Morris Italia has also been supporting farms in the path of eco-energy and digital transition, central both in the current phase of great uncertainty, and to face the challenges of the medium-long term through which to make the Italian tobacco supply chain increasingly central in the international context. Many are the results obtained: from the reduction of CO2, -56% in 2021 compared to 2012, to the responsible use of water resources, with a reduction in consumption of 53% compared to 2015. Among the actions undertaken in favor of the digital transition, the Digital Farmer, an entrepreneurial training course, aimed in particular at young farmers, which aims to encourage the improvement of their technical skills and the adoption of cutting-edge technologies in the field of precision agriculture.