Page 81 - Economic report 2020

pandemic. Remember that the tobacco harvest in 2019 was almost 245,000 kg, whereas the figure
fell to 119,831 kg in 2022. The 2022 harvest was affected by fungus and bad weather.

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 adopting the EU acquis at the same
time, with the final goal of completely removing customs duties. In exchange for approval of the
preferential treatment period, Andorra must demonstrate that it is diversifying its economy to
reduce its economic dependence on tobacco; that it is combatting fraud and smuggling, and that it
undertakes not to increase the tobacco price differential between the EU and Andorra, especially
with its neighbouring states.

As for apiaries, in 2022 there were 43, five less than in the previous year, with a total of 543
hives, 15 more than in 2021. This means that there are less apiaries but they are larger. Of these
apiaries, 24 are dedicated exclusively to beekeeping while 19 practise apiculture as a side-line.

In 2022, the number of livestock fell 5.4%; 4,564 heads were recorded, 258 less than in 2021
– the lowest figure since the series started in 1988. The 2022 decline can be explained by the
fall in numbers of sheep, by 10.4%, lowering their proportion of total livestock to 47%. Due
to this major reduction, the number of heads
of sheep returned to the 2008 figure. On the The number of livestock declined due to
other hand, the number of goats increased falling numbers of sheep and cattle.
(+3.5%), but are still relatively less important as
they only represent 8% of total livestock, and 79
the number of horses also increased, by 5.8%, representing 12% of the total. Finally, the number
of cattle, the second most important livestock category, with 32% of the total, fell 3.4% last year.

NUMBER OF LIVESTOCK (adult heads) Table 9.4

% variation % total
2021 2022 2022/2021 2022

Total cattle (bulls, cows) 1,502 1,451 -3.4 31.8
Total horses (workhorses, studs, mares) 531 562 5.8 12.3
Total sheep (rams, ewes) 2,417 2,166 -10.4 47.5
Total goats (bucks, does) 372 385 3.5 8.4
Total livestock 4,822 4,564 -5.4 100

Source: Department of Agriculture.

The Government wishes to promote organic (ecological) certification with the help of the direct
and indirect subsidies that were put in place in 2021 to assist the agricultural sector during the Andorran economy: developments in the main sectors | IX. Primary sector
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 bears the cost of