Philip Morris Italia and Coldiretti have renewed the agreement for the purchase of tobacco in leaf cultivated in Italy. At the heart of the agreement innovation and sustainability.
In particular, the collaboration agreement provides for Coldiretti's commitment to supervise compliance with good agricultural practices by all farmers involved in Philip Morris International purchases. The Good Agricultural Practices (Good Agricultural Practices or GAP), allow an assessment of the cultivation processes of suppliers and the identification of any opportunities for improvement.
These are economically feasible, safe and quality crop oriented practices that simultaneously support, protect and improve the environment and respect workers. The program was developed with input from growers, industry companies, government agencies and universities. The adoption of the GAP guidelines by the growers represents an essential and indispensable prerequisite for the collaboration with Philip Morris International.
The agreement falls within the context of the agreement signed between the Ministry of Agricultural, Food and Forestry Policies and Philip Morris Italia which provides for investments up to total of 500 million euros between 2019 and 2023 by the Philip Morris group on the Italian tobacco supply chain.
Investment program: innovation and sustainability
At the heart of the agreement is building an agriculture-focused future on technological innovation and environmental sustainability, all with the creation of added value for the farmers' income by guaranteeing the high levels of employment in the sector, a fundamental aspect especially in this delicate moment. The key actions underlying the agreement are as follows:
• Energy saving and rationalization of water use in the tobacco cultivation and curing phases;
• The use of alternative/renewable energy to power tobacco curing ovens to reduce carbon dioxide emissions;
• Product quality improvement activities, ensuring production, environmental and labor sustainability;
• 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 process of transformation towards alternative and complementary agronomic activities, considering the need to adapt the offer to the final market.
A virtuous path that goes on and that sets a positive example within a global context marked by particular criticalities and complexities. Philip Morris has chosen for years to invest entirely in Italy, all focusing on sustainability and innovation: the goal is to guarantee the future and new development margins for the supply chain. Therefore, 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 the hundreds of small and medium-sized Italian companies represented by Coldiretti and directly involved, with a view to the integrated supply chain - he commented Marco Hannappel, Chief Executive Officer of Philip Morris Italy – Working alongside the best Italian growers is also essential with respect to the transformation process of our sector towards smokeless tobacco products. The quality and good agricultural practices that we promote together with Coldiretti are already making the difference in keeping the competitiveness of the Italian supply chain high".
"An important agreement that goes in the direction of sustainability at the heart 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, stability and future are guaranteed for the work of farmers engaged in a cultivation deeply rooted in many territories who 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 first tobacco producer in the European Union with over 1/4 of the total production, developed on 16.000 hectares”.
La The collaboration between Philip Morris Italia and Coldiretti has lasted almost twenty years, since the early 2000s, Philip Morris International, in partnership with Coldiretti, has supported the sector in the development of an agricultural management system that puts farmers at the centre. The Italian example 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 agreement with Coldiretti signed today confirms Philip Morris International's long-standing commitment to Italy: with over 30 people involved in an integrated supply chain entirely made in Italy, the Philip Morris group's commitment in Italy has generated huge investments, both in agriculture – about 2 billion euros since 2000 – and manufacturing, thanks to over one 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, the recent investments 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 the advanced training of industry 4.0 skills based in Bologna.
