• Tue. Oct 26th, 2021

Coldiretti-Philip Morris Italia agreement for the tobacco supply chain


May 6, 2021

The agreement between Philip Morris Italia and Coldiretti for the purchase of leaf tobacco grown in Italy was renewed today. The event was held in attendance in compliance with anti-contagion regulations. A virtuous path that goes on and that marks a positive example within a global context marked by particular criticalities and complexities. The agreement with Coldiretti is located in the context of the agreement signed between the Ministry of Agricultural, Food and Forestry Policies and Philip Morris Italy which provides for investments of up to a total of 500 million euros between 2019 and 2023 by the Philip Morris group on the Italian tobacco supply chain. It is the most significant investment in the sector by a private company. In fact, Philip Morris has for years chosen to invest totally in the Italian territory, from agricultural seed to resale through cutting-edge industrial plants. It is a story of development that involves a thousand small and medium-sized agricultural enterprises for the purchases of Italian tobacco, mainly in Campania, Umbria, Veneto and Tuscany. All focusing on sustainability and innovation: the goal is to guarantee the future and new development margins for the supply chain. In this sense, the strategic support of Coldiretti is fundamental. “An agreement that is more important than ever, especially in a delicate phase like the one we are going through. Good news not only for our company, but also for hundreds of small and medium-sized companies. Italian companies represented by Coldiretti and directly involved, in the perspective of the integrated supply chain – words of Marco Hannappel, managing director of Philip Morris Italia, who added – Working alongside the best Italian farmers is also fundamental with respect to the transformation process of our sector towards smokeless tobacco products. The quality and good agricultural practices we are promoting together with Coldiretti are already making a difference to keep the competitiveness of the Italian supply chain high “. “An important understanding that goes in the direction of sustainability at the center of the country’s relaunch strategies, according to a model of supply chain agreements that aim to enhance the distinctiveness of Made in Italy by combining innovation, attention to the environment and safeguarding employment – underlined the president of Coldiretti Ettore Prandini – In this way we go to guarantee stability and future to the work of farmers engaged in a cultivation deeply rooted in many territories that in recent years have been able to build a path of rationalization and reorganization in the quality of production processes and the shortening of the supply chain. A model supply chain thanks to which Italy is today the leading tobacco producer in the European Union with over 1/4 of the total production, developed on 16,000 hectares “. The heart of the agreement consists in building a agricultural future focused on technological innovation and environmental sustainability, all with the creation of added value for the income of farmers by guaranteeing the high levels of employment in the sector, a fundamental aspect, especially in the current context. Here are the fundamental actions underlying the agreement: energy saving and rationalization of the use of water in the phases of cultivation and care of tobacco; the use of alternative / renewable energies in the supply of tobacco curing ovens to reduce the emission of carbon dioxide; product quality improvement activities, guaranteeing production, environmental and labor sustainability. Furthermore, introduction and development of new digital systems and Precision Farming for a transformation that aims at agriculture 4.0; the development of production traceability systems to ensure product sustainability; a path of transformation towards alternative and complementary agronomic activities, considering the need to adapt the offer to the final market. For almost twenty years, since the early 2000s, Philip Morris International, in partnership with Coldiretti, has been supporting the sector in the development of an agricultural management system that puts farmers at the center. The Italian example today represents a model of absolute prestige on the international scene, and contributes to guaranteeing commercial predictability, long-term sustainability and better competitiveness for about 1000 Italian tobacco companies active in Campania, Umbria, Veneto and Tuscany. The collaboration agreement provides for Coldiretti’s commitment to ensure compliance with good agricultural practices by all growers involved in the purchases of Philip Morris International. The Good Agricultural Practices (GAP), allow an assessment of the suppliers’ cultivation processes and the identification of any opportunities for improvement. The agreement with Coldiretti signed today confirms Philip Morris International’s long-term commitment to Italy: with over 30,000 people involved in an integrated and all-made in Italy supply chain, the commitment of the Philip Morris group in Italy has generated huge investments, both in the agricultural sector – about 2 billion euros since 2000 – and in manufacturing, thanks to over 1 billion euros invested in the Bologna area for the first factory in the world for smokeless tobacco products. Furthermore, to further complete the Italian supply chain, recent investments have been added for the construction of the Philip Morris Disc, the new center dedicated to digital services for the consumer based in Taranto; and for the start of the works of the Philip Morris Institute for Manufacturing Competences, the new Philip Morris center for higher skills training for industry 4.0 based in Bologna.