Is there any opportunity in agriculture after tobacco growing? Beáta BITTNER PhD Anita MISLOVICS KERÉKGYÁRTÓ Tibor OROSZ Prof. János BORSOS DSc UNITAB.

Is there any opportunity in Is there any opportunity in agriculture after tobacco agriculture after tobacco growing?growing?

Beáta BITTNER PhD

Anita MISLOVICS KERÉKGYÁRTÓ

Tibor OROSZ

Prof. János BORSOS DSc

UNITAB CONGRESS 2012Budapest, Hungary

October 18-20, 2012

Facts in European tobacco Facts in European tobacco sectorsector Tobacco growing and consumption of tobacco products

have taken different directions World market prices are independent of the European

tobacco production, with the exception of Oriental tobaccos In Europe, the key of competitive tobacco growing is the

direct production subsidy Health risk will further increase, if strict controlled European

tobacco will be omitted from blends of the tobacco products There is no alternative of tobacco regarding the

employment and income in the ecologically disadvantaged areas

The diversification of the activity is only possible with social means

In case of tobacco growing will be finished, there will be a general degradation both in the instruments and in the environment

European tobacco growing is exposed to the globalisation process

European tobacco growing appeared in the European tobacco growing appeared in the creation of the support system, as one of the creation of the support system, as one of the rather sensitive issues of the common agricultural rather sensitive issues of the common agricultural policy, as an eco-social focus.policy, as an eco-social focus.

Debates continue:◦ the price competition in the world market,◦ the eco-socical drawback of tobacco

growing regions increased,◦ growing pressure of the anti-smoking

social atmosphere,◦ the WTO negotiations aiming at the

decoupling of direct payments,◦ critical social judgment.

Our aim: to find those integration points, which Our aim: to find those integration points, which allow the sustainable tobacco production in allow the sustainable tobacco production in Europe for the benefit of rural inhabitants, by Europe for the benefit of rural inhabitants, by developing the social relations.developing the social relations.

Termination of tobacco production would be direct effect on the tobacco sector’s related companies. The termination of tobacco production would lead to the termination of their work in Hungary.  The termination would concern: •Proprietors of companies,•Permanent and temporary employees,•Supplier and server companies, •local governments, and the•state.

The assessment of the situation The assessment of the situation those who left tobacco productionthose who left tobacco production

Assessment of economic situation of those producers who had given up tobacco production in Hungary since the accession to EU.

122 producers – n=122

◦Average time in production 19 years (1-56)

◦Take up in tobacco sector:

continued the family tradition: 65%

At work: 12%

Through acquaintance's suggestion or other:23%

Quality of soil in HungaryQuality of soil in Hungary

The quality (average golden The quality (average golden crown value) of the tobacco crown value) of the tobacco cultivating areas of the cultivating areas of the respondentsrespondents

persons

Seize of tobacco production’s area Seize of tobacco production’s area in samplein sample

The reasons for give up tobacco The reasons for give up tobacco production production

Old age

Illness

Low profitability

Mistrust towards the EU regulatory and subsidy system

Uncertainties in tobacco sector

High production risk

No landownership opportunities

Migration

Switch to an other agricultural sector

Switch to another sector (industrial, commerce)

Lack of labour force

What happened with the What happened with the tobacco area after the tobacco tobacco area after the tobacco growinggrowing……

%

My rental ceased

Sold

Rented out

Uncultivated

Turned the cultivating other crop

The frequency of sectors The frequency of sectors substituting tobacco productionsubstituting tobacco production

Analysis of Analysis of sectors sectors substitutingsubstituting

riskprofitabilitymarketexpertisecontractual relations

The evaluation of particular The evaluation of particular sectors compared to tobacco sectors compared to tobacco productionproduction

Survival analysisSurvival analysis according to the way they get into tobacco sectoraccording to the way they get into tobacco sector

Examination of soil quality categoriesExamination of soil quality categories

Examination of land sizeExamination of land size

THANK YOU FOR THANK YOU FOR YOUR KIND YOUR KIND ATTENTION!ATTENTION!