Philip Morris Italy e Coldiretti have the agreement was renewed for the 'purchase of cultivated tobacco in Italy and to promote sustainability in the entire tobacco supply chain.
The agreement was signed during the event “Food and agriculture: food sovereignty, supply chain, biodiversity” at the VColdiretti village in Rome, in the presence of the President of Coldiretti Ettore Prandini, the President and CEO of Philip Morris Italy Marco Hannappel, the Minister of Agriculture Francesco Lollobrigida and the President of the Lazio Region Francesco Rocca.
Economic sustainability for agricultural businesses
The agreement between the parties is one best practice recognized at national, European and international level, which ensures economic sustainability for the agricultural businesses involved. The agreement also allows for medium-long term strategic planning, with targeted investments towards environmental sustainability, the digital transition and the training of young farmers.
A recent analysis conducted by the Divulga Study Center has shown that the farms who join this supply chain agreement between Coldiretti and Philip Morris have recorded a profitability of 25% higher than non-member companies, based on official data relating to the three-year period 2014-2016 and 2018-2020.
Investments up to 500 million
Today's signing is a follow-up to themulti-year agreement signed in March between the Ministry of Agriculture, Food Sovereignty and Forestry and Philip Morris Italy. This agreement provides investments up to 500 million of euros between 2023 and 2027 by Philip Morris in the Italian tobacco supply chain, with the commitment to purchase approximately 50% of Italian tobacco.
Develop a Made in Italy supply chain
Philip Morris Italia is carrying out the most significant private investment in the sector, with an unprecedented financial commitment and a five-year plan to ensure stability for growers. Among the objectives is that of develop a Made in Italy supply chain focused on smokeless tobacco products, involving approximately 41.000 people nationwide. This unique model encompasses advanced agriculture, innovative product manufacturing, research and development, training and advanced consumer services, setting an international benchmark.
Thanks to Philip Morris, investments of up to 2,5 billion in total were generated in the sector
The ilong-term commitment of Philip Morris together with the Ministry of Agriculture and Coldiretti, started in the early XNUMXs, led to total investments of approximately 2,5 billion of euros in Italian agriculture, mainly to the benefit of tobacco supply chain.
Between actions there are the promotion of good agricultural and labor practices, initiatives for the reduction of CO2 emissions (including through renewable energy), the sustainable use of water resources, the protection of biodiversity and the promotion of innovative technological projects through acceleration models and Open Innovation.
“Our commitment in the agricultural sector, which began more than ten years ago with the first supply chain agreement in 2011, has generated important results which demonstrate how these agreements are an indispensable tool to protect farmers and the Italian system. With today's agreement we give concrete implementation to the commitments signed this year with Masaf, which represent an essential component of our integrated supply chain which today involves over 40 thousand people. We will continue to support in a concrete way Italian tobacco supply chain together with Coldiretti, increasingly convinced of how an integrated supply chain logic is the best path to follow” – words of Marco Hannappel, CEO and President Philip Morris Italy, President South-Western Europe Philip Morris international.
“The road of supply chain agreements are crucial for the growth of the country system since it promotes the true Made in Italy by creating value in terms of income and employment, as well as environmental sustainability" declared the president of Coldiretti Ettore Prandini in underlining that "theagreement with Philip Morris Italy from this perspective it also represents an example for other sectors since it makes innovation one of the central elements of the activities implemented. The digitalisation tested in tobacco could, for example, be extended to other supply chains."
