Philip Morris International to Acquire 33% of Spanish Tobacco Crop
Philip Morris International (PMI) is fortifying its long lasting determination to the future of tobacco growing in Spain by reviving its Framework Collaboration Agreement with the Spanish Ministry for Agriculture, Food and the Environment for the following three years, the company representative stated a week ago. “As part of the completely new Agreement signed these days in Madrid, PMI will acquire 33 % more of the Spanish tobacco crop in 2013 in comparison to 2012,” the company reported in a note shared on its official website on Monday. “In 2014 and 2015 PMI will raise its tobacco acquisitions by an annual rate of around 5 %.”
The new arrangement was settled by Spain’s Minister for Agriculture, Food and the Environment Miguel Arias Cañete, and Spaniard Drago Azinovic Gamo, chief executive of PMI’s EU region. “We are proud with this contract, which reasserts the assistance of the Spanish government, the regional government of Extremadura and PMI for the continuing and lasting growth of quality tobacco crop in Spain,” stated Drago Azinovic. “In spite of the more and more competing and constantly altering business environment, PMI continues to be dedicated to the future of this sector and the work opportunities it offers in Spain. “It is for this reason that, alongside with the whole tobacco sector, we are mainly worried about the effect the exaggerated recommendations in the proposed European Tobacco Products Directive presently being discussed in Brussels. “This directive could rather adversely impact the whole sector that in our country creates 56,000 work opportunities and around 6 % of the Spanish government’s entire tax income.”
The settlement is stated to reaffirm the determination that PMI, the government of Extremadura and the Spanish Ministry for Agriculture and Environment have concluded in order to concentrate on initiatives to advance the quality of Spanish tobacco crop and make it more reasonably competitive, “especially against the backdrop of a progressively difficult economic and regulatory environment. It also consists of conditions that will improve the environmental sustainability of tobacco expanding regions by motivating good agricultural strategies,” the note stated. “To help in putting these practices into work, PMI will provide tobacco growers’ groups and others engaged in the cultivating and processing of tobacco crop, training classes on superior agricultural practices within the next three years.
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