Is there any opportunity in agriculture after tobacco growing?

1. Is there any opportunity in agriculture after tobacco growing? Beáta BITTNER PhD Anita MISLOVICS KERÉKGYÁRTÓ Tibor OROSZ Prof. János BORSOS DSc UNITAB CONGRESS 2012 Budapest, Hungary October 18-20, 2012

2. Factsin European tobaccosector • 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

3. European tobacco growing appeared in the creation of the support system, as one of the rather sensitive issues of the common agricultural 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 allow the sustainable tobacco production in Europe for the benefit of rural inhabitants, by developing the social relations.

4. 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 workin Hungary. • The termination would concern: • Proprietors of companies, • Permanent and temporary employees, • Supplier and server companies, • local governments, and the • state.

5. The assessment of the situation those 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% • Atwork: 12% • Throughacquaintance's suggestion or other: 23%

6. Quality of soilin Hungary

7. The quality (average golden crown value) of the tobacco cultivating areas of the respondents persons

8. Seize of tobacco production’s area in sample

9. The reasons for give up tobacco production Oldage Illness Lowprofitability Uncertainties in tobacco sector High production risk Mistrust towards the EU regulatory and subsidy system No landownership opportunities Migration Switch to an other agricultural sector Switch to another sector (industrial, commerce) Lack of labour force

10. What happened with the tobacco area after the tobacco growing… My rental ceased Sold Rented out % Uncultivated Turned the cultivating other crop

11. The frequency of sectors substituting tobacco production

12. Analysis of sectors substituting • risk • profitability • market • expertise • contractual relations

13. The evaluation of particular sectors compared to tobacco production

14. Survivalanalysisaccording to the way they get into tobacco sector

15. Examination of soilqualitycategories

16. Examination of landsize

17. THANK YOU FOR YOUR KIND ATTENTION!