Tobacco-growing in the European Union

7.4.2008

WRITTEN QUESTION P-2149/08
by Czesław Adam Siekierski (PPE-DE)
to the Commission

The 2004 CAP reform with regard to the tobacco market included the gradual withdrawal of subsidies for tobacco production and their replacement with fully decoupled payments. Unfortunately, this decoupling of support from production will automatically bring EU tobacco production to a halt. The negative impact of introducing this reform can already been seen in 14 EU Member States in which tobacco is grown, in particular Greece and Italy, where production has fallen dramatically. It should be borne in mind that tobacco production is often the only source of income for thousands of families. Tobacco is grown, therefore, in regions marked by high unemployment and a low level of development. By way of an example, in Poland, the average plantation size is only 1 ha. It is clear to see, therefore, that small, family-run farms, which have often been passed from generation to generation, make up this agricultural sector.

Everyone knows that the fact that tobacco is grown in the EU has no real impact on the level of tobacco products consumed. However, this fact is of great economic and social importance. There are 100 000 tobacco growers in the Union, who take on almost 400 000 hired workers. A further 30 000 people, approximately, are employed in the tobacco industry and thousands of others work in areas related to the tobacco sector as a whole. The complete decoupling of tobacco subsidies from production will cause tobacco production in the EU to stop altogether. It will mean that we will have to import tobacco from third countries. EU tobacco, produced in accordance with stringent requirements, is measured by higher quality standards than imported tobacco. It is common knowledge that rules concerning the use of fertilizers and plant protection products are practically non-existent in countries such as India and China, not to mention the employment of minors in the tobacco industry. It is difficult, therefore, to talk about equal competition conditions. Tobacco production in the EU meets just 25% of demand and this figure is constantly falling.

The present review of the CAP is the ideal opportunity to make certain amendments to the reform provisions adopted in 2004. Taking into account the specific production conditions (e.g. animal farming or tobacco-growing), the Commission should propose certain exemptions, i.e. maintaining production-related subsidies for these specific branches of agriculture.

In view of the above, does the Commission not consider that it would be reasonable for production-related assistance to remain in place until at least 2013 in order to prevent the tobacco market from collapsing completely? What measures does the Commission intend to take to ensure that the already much weakened tobacco sector can continue to operate?

OJ C 40, 18/02/2009