Page 81 - economic report 2021

TOBACCO HARVEST BY PARISHES (Kilos)* Table 9.3
% var. % total
2020 2021 21/20 2021
Canillo 7,324 7,909 8.0 6.5
Encamp 14,401 14,728 2.3 12.0
Ordino 11,761 15,835 34.6 12.9
La Massana 19,263 22,771 18.2 18.6
Andorra la Vella 14,426 15,040 4.3 12.3
Sant Julià de Lòria 34,591 40,370 16.7 33.0
Escaldes-Engordany 5,034 5,699 13.2 4.7
Total 106,799 122,352 14.6 100.0
* Kilogrammes adjusted to the agreed quotas, af er payment adjustment. Due to the situat on caused by COVID-19,
the annual tobacco harvest fell to half the normal quant ty in 2020 and 2021.
Source: Department of Agriculture / Associat on of Andorran Tobacco Manufacturers (AFPTA).

The customs integration process agreed by Andorra with the European Union establishes a 30-
year transition period for the tobacco sector before inclusion in the customs union, from entry
into force of the association agreement. From the seventh year, Andorra would have to start
gradually waiving the current customs duties while gradually adopting the EU acquis with the
goal of completely removing customs duties. In exchange for approving the period of preferential
treatment, Andorra must demonstrate that it is diversifying the economy to reduce its economic
dependence on tobacco; that it is combatting fraud and smuggling (through periodical reports
to be sent to the EU with data on quantities produced, imported, marketed and exported), and
that it undertakes not to increase the price difference between the EU and Andorra of tobacco, 79
especially with its neighbouring states.

As for apiaries, in 2021 there were 48, three more than in the previous year, with a total of 528
hives, eighty more than in 2020. Of these apiaries, 26 are dedicated exclusively to beekeeping
while 22 carry out apiculture as a side-line.

In 2021, the numbers of livestock fell 2.8% - In 2021, the number of livestock fell
4,822 heads were recorded, 137 less than in as the number of sheep declined.
2020 – the second lowest figure in the last
twenty years (after 2019). The 2021 decline
can basically be explained by the category of sheep, which is the largest category and represents
50% of total livestock, which fell 6.6% after increasing 6.3% in the previous year. Accordingly, the
number of sheep was practically the same as in 2019. On the other hand, the number of goats
increased (6.3%), but are less important as they only represent 7.7% of total livestock. The number
of horses also increased, 2.5%, representing 11% of the total. Finally, the number of cattle, the
second largest category with 31% of the total, remained stable.

The Government wishes to promote organic (ecological) certification with the help of the direct The Andorran economy: developments in the main sectors | IX. The primary sector
and indirect subsidies that were put in place in 2021 to assist the agricultural sector during the
process of conversion to local, high quality, organic production. The subsidies are intended to
compensate the effort and additional costs associated with this kind of production. Specifically,
direct aid is offered exclusively to crop and livestock farmers for cultivating crops and developing
livestock activities intended to produce organic agricultural and food products (the subsidy is
€3,000/hectare/year for conversion to organic and €2,000/hectare/year for continued organic
production). The indirect subsidies are offered to the owners of farms and businesses that carry
out activities related to the production, transformation and subsequent marketing of organic
agricultural and food products. In the case of indirect aid, the Government is responsible for