Sustainable agriculture and farmer livelihoods They grow, we grow: helping farmers to thrive Tobacco leaf is the most essential part of our products, so the farmers who grow it are absolutely crucial to the success of our business. 00:00 00:00 Sustainable agriculture and farmer livelihoods How does BAT support farmer livelihoods and sustainable agriculture? Watch in higher quality on YouTube Download transcript (PDF 77 kB) Our agricultural supply chain We do not own tobacco farms or directly employ farmers – but our approach to agriculture and working with farmers means that we have strong influence. We buy more than 400,000 tonnes of tobacco each year from a small number of first-tier suppliers located in approximately 35 countries, which include: BAT-owned companies, which directly contract and support over 90,000 farmers; Third-party suppliers, which contract approximately 260,000 farmers. We also purchase a small amount of tobacco sourced from auction floors. All our suppliers are managed centrally by our Group's leaf function, which enables global oversight of our supply chain and the sustainability risks and issues inherent in agriculture. We have a defined approach to identifying our most strategic and critical leaf sources, which takes account of a number of parameters, including the tobacco type, geography and commercial factors, such as price and volume. Over 80% of our total leaf purchases are from these strategic sources. The farms in our supply chain vary in size and complexity: 59% are one hectare or less, and are typically unmechanised, family farms with no hired labour. As well as tobacco, they also grow food crops for their own consumption or sale in local markets 11% are between 1.1 and four hectares, with some mechanisation and hired labour, and tend to grow other crops, such as wheat and maize, for commercial scale 30% are over four hectares, with full mechanisation and use of hired labour. These farms usually grow multiple crops for commercial sale, including cotton and soy bean. A strategic approach Agricultural supply chains are particularly vulnerable to a range of challenges, including climate change and water scarcity, increasing demand for land and natural resources, rural poverty, social inequality, child labour and ageing farmer populations. Tobacco is no exception. At BAT, we have a long and proud history of working directly with farmers around the world and advancing agricultural practices. This benefits our farmers by giving them the resources and support they need to be successful, as well as helping to secure our long-term supply of tobacco leaf and ensuring the integrity and quality of our products to satisfy our consumers. We see an opportunity for us to build on this longstanding approach, to work with others to develop multi-stakeholder solutions to increasing challenges and expectations and to further enhance the livelihoods of farmers and their communities. We focus on two key programmes to ensure the long-term sustainability of our tobacco leaf supply chain and to enhance farmer livelihoods: Sustainable Tobacco Programme: This is an industry-wide standards and compliance programme which applies to all first-tier tobacco leaf suppliers for all the major global tobacco manufacturers Sustainable Agriculture and Farmer Livelihoods (SAFL) programme: This is a BAT-only initiative focused on creating long-term value and mutual benefit for the farmers and rural communities from which we source tobacco leaf. Tobacco farming More than 100 countries grow tobacco. China grows the most, followed by Brazil, India, USA and Zimbabwe. Less than 1% of the world’s total agricultural land is estimated to be used for tobacco farming (based on data from the Food and Agriculture Organisation of the United Nations). Tobacco is only grown for part of the year leaving the land available for other crops, including food, to be grown during the rest of the year. The guidelines that govern our business Policies, principles and standards New programme drives industry-wide supplier standards Sustainable Tobacco Programme Developing collaborative solutions Human rights and child labour in tobacco growing External links International Tobacco Growers Association A day in the life of... A day in the life of our work with farmers and our leaf research. Sustainable Agriculture Development Programme Our programme in Sri Lanka empowers rural villagers living below the poverty line by giving them the skills, knowledge and resources to become self-sufficient. How we work From crop to consumer Human rights and Modern Slavery Act Sustainable agriculture and farmer livelihoods Sustainable Tobacco Programme Enhancing livelihoods Focused support for farming communities Environmental and supply chain management Manufacturing Research and Development Marketing our products responsibly Working with retailers Search BATS: LSE GBp 4678.33 (-38.67) About us Sustainable business Our industry Challenges and opportunities How we work From crop to consumer Our products Putting consumers first Next Generation Products Capabilities, commitment, ambition Sustainability Investors Media Reporting Careers Contact us Worldwide Home How we work Sustainable agriculture and farmer livelihoods Explore our world We are one of the world’s most international businesses and many of our Group companies have their own websites. @BATPress BAT Careers @CareersatBAT As a #Brand #Manager you want a fantastic product with huge potential. Like #Vype. Join our #London team. 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