Under the leadership of the International Association of Tobacco Producers – UNITAB – there is a struggle going on for stabilizing the situation of European tobacco growers. UNITAB unites the tobacco associations and tobacco growers of all EU countries.
Tobacco production ensures economic stability for more than 100 thousand small- and m
Within the framework of the CAP reform, the European Union is gradually changing the regulations of production. This is based on the decoupling of subsidies, which will be implemented in two phases. Between 2006 and 2009. the decoupling will be 40% and then after 2010, 50% (the other 50% will be used for restructuring within the second pillar). The question is raised, how will the second 50% be restructured to the second pillar. Between regions and how it can be ensured that this support would go to tobacco production.
With its participation in the principles of the European Tobacco Charta, UNITAB targets for production under economically-balanced conditions, the production of products meeting the customer requirements, consideration of the working conditions (especially for seasonal workers) and adherence to the health regulations related to the consumption of the end product already in the production and environmental protection. They aim to ensure the survival of the sector via tobacco growing with sustainable development and high quality. To maintain the continuity, there is a need for the support of regional, national and EU authorities. Future of the sector is dependent upon adaptation of tobacco growers and upon meeting the social expectations.
According to UNITAB, efforts should be made to modify the decisions so that the majority of the funding could be used by the grower. The tobacco industry has been able to effectively fight for its survival.
Due to the effects of economic and political transformations, privatization and accession to the EU, Hungarian agriculture has gone through significant changes in the last two decades. As a result of continuous changes in the economic and regulatory environment, producers have to plan and maintain cultivation and adapt to the changing market ne...eds within continuously changing circumstances. These effects have resulted in a significant decline or in some cases, certain sectors have disappeared. These exercise a negative social and economic effect on all over the country, causing irreversible damages on those regions where agriculture is the only source of living. This paper discusses the effects of breakdown or disappearance of a traditional agricultural sector, namely the tobacco sector.