COMMISSION OF THE EUROPEAN COMVIUNITIES 
COM(95) 21 final 
Brussels, 17.03.1995 
REPORT FROM THE COMMISSION TO THE COUNCIL 
on the situation of "sun-cured" tobacco in Italy 
1. SITUATION 
1.1 Production 
In 1976, 38 355 tonnes of sun-cured tobacco (varieties Xanthi-Yakà, Perustitza, Erzegovina) 
were produced in Italy. Since then, production has dropped continually to 11 961 in 1992 
despite high premiums (between ECU 1.905 and 2.222/kg) and export refunds 
(ECU 0.35/kg). 
While this drop in production was relatively steady between 1986 and 1991 (from 23 460 
to 17 120 tonnes), production fell sharply in 1992: by 30% in relation to the previous 
harvest to 11 961 tonnes, i.e. 60% of the maximum guaranteed quantity. 
In 1993 production rose somewhat to 13 302 tonnes - the guarantee threshold was fixed at 
15 000 tonnes. Only 63% of total production in 1993 was produced by producer groups. 
The quota for 1994 has been fixed at 11 000 tonnes. 
Production of this type of tobacco concerns several thousand workers and is strongly 
concentrated in two provinces of Italy (Salento, Lecce 90% and Chieti 10%). 
1.2 Producers' income 
Total earnings on the production of sun-cured varieties in recent years were as follows: 
1990 
1991 
1992 
1993 ECU 44 645 000 
ECU 36 460 000 
ECU 32 027 000 
ECU 25 935 000. 
The Community aid included in these earnings was as follows: 
1990 
1991 
1992 
1993 ECU 43 877 000, i.e. 98% of total earnings 
ECU 36 909 000, i.e. 101% of total earnings 
ECU 25 353 000, i.e. 80% of total earnings 
ECU 25 389 000, i.e. 98% of total earnings. 
1.3 Production quality 
The distribution of Italian sun-cured tobacco among the different quality classes is 
unsatisfactory: for the 1988-92 harvests, the best of the three classes accounted for an 
average of only 0.8% (Xanthi-Yakà), 6.5% (Perustitza) and 6.8% (Erzegovina), while the 
lowest quality class accounted for 73.3% (Xanthi-Yakà), 55.5% (Perustitza) and 49.8% 
(Erzegovina) respectively. 
2. 
1.4 Prices 
The average prices paid by processors under the old arrangements were the same as, or 
slightly lower than, the premiums they received. Taking account of export refunds, the 
amount of Community assistance under the old arrangements was, on a number of 
occasions, higher than the average prices paid by processors to producers. 
Under the new arrangements, for the 1993 harvest, for which definitive figures are available, 
the purchase price paid by processors to producers for the highest quality tobacco amounted 
to only LIT 750/kg(ECU 0.364), compared with a premium of ECU 1.975/kg(i.e. 17.5%»). 
Prices for the lowest quality were approaching zero. The average prices actually paid were 
very low: ECU 0.041/kg, i.e. 2.1% of the premium. 
1.5 Disposal of production 
For the 1988 and 1989 harvests, an estimated 7 500 to 8 000 tonnes were disposed of on 
the Community market. For the 1990 and 1991 harvests, the figure might reach up to 
10 000 tonnes, but part of that quantity could still be exported with refunds. For the 1992 
harvest, disposal on the Community market is likely to have fallen to around 5 500 tonnes. 
Consequently, it is realistic to estimate that the internal market can absorb only about 8 000 
tonnes per harvest (average for 1988/92). Moreover, there is a downward trend, given the 
changes in consumer preference, which is leaning more and more towards products less rich 
in nicotine and teer. 
It should also be stressed that the Italian sun-cured varieties are not used as aromatic 
varieties. Following the spread of giant biotypes, production has gradually become 
disqualified through the loss of the varieties' original characteristics, so they are now mostly 
used as fillers. 
Exports to third countries (which averaged 8 400 tonnes per harvest from 1988 to 1991) 
mostly go to the countries of eastern Europe and north Africa. They have a low commercial 
value despite the export refunds (ECU 0.35/kg). Exports fell to 6 437 tonnes in 1992 and 
to only 93 tonnes in 1993, which was the first harvest without refunds. 
When intervention stocks were sold, the price obtained for Italian sun-cured varieties was 
ECU 0.314/kg, while Greek tobacco of the same group went for ECU 0.37/kg (Tsebelia), 
ECU 0.46/kg (Mavra) and even ECU 1.511/kg (non-classical Kaba Koulak). These price 
differences are a good indication of the commercial value of these tobaccos on export. 
CONCLUSIONS 
The volume of sun-cured tobacco produced in Italy has dropped steadily over recent years. 
This reduction reflects the drop in demand for these varieties as seen in the very low prices 
paid to producers. 
This situation is likely to persist unless the producers are able to raise the quality of their 
product to enable it to find a niche market. 
3 
Sun-cured tobacco produced in Italy since 1973 
HARVEST TOTAL 
(tonnes) 
1973 22 349 
1974 22 734 
1975 31 364 
1976 38 355 
1977 25 637 
1978 25 011 
1979 31 325 
1980 25 120 
1981 25 501 
1982 24 423 
1983 27 008 
1984 26 772 
1985 30 278 
1986 23 460 
1987 20 948 
1988 19 854 
1989 21 847 
1990 19 021 
1991 17 120 
1992 11 961 
1993 13 302 
Sources: Annual report on agriculture 
V. SUN-CURED. ITALY 
Harvest Quantity produced 
(*) 
A Quantity exported 
B % 
C (»B/A) Intervention 
(*) 
D Internal market 
(maximum) 
E (A-B-D) 
Old arrangements 
1988 
1989 
1990 
1991 
1992 19 852 
21 848 
19 021 
17 120 
11 958 8 140 (1) 
9 759 (1) 
8 378 (1) 
7 591 (1) 
6 437 (1) (41.0) 
44.7 
44.0 
(44.3) 
(53.8) 3 818 
4 627 
112 
26 7 894 
7 462 
10 643(2) 
9 413 (2) 
5 495 (2)(3) 
New arrangements 
1993 13 302 93 0.7 -
(*) Communications from Italy 
(1) With refunds. 
(2) Export refunds still apply. 
(3) Intervention still possible. 
Source: Prepared by the Commission's departments. 
ISSN 0254-1475 
COM(95) 21 final 
DOCUMENTS 
EN 03 
Catalog number : CB-CO-95-029-EN-C 
ISBN 92-77-85199-6 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
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