OVERVIEW OF ROMANIAN AGRICULTURE

1
OVERVIEW OF ROMANIAN AGRICULTURE

• MINISTRY OF AGRICULTURE, FORESTS AND RURAL
  DEVELOPMENT

2
CLIMATE CONDITIONS

• Temperate continental
• Average annual temperature 15 -18 C0
• 4 seasons
• Average annual rainfall 26 inches (Carpathians -
  55, Dobrogea - 16)

3
AREA AND POPULATION

• Area
• total-237.500 sq.km
• land-230.340 sq.km
• water-7.160 sq.km
• Population
• 22.5 millions

4
AGRICULTURAL LAND

• General Agricultural Census

5
STRUCTURE OF HOLDINGS

• Registered agricultural entities - 4.759,7 thou.
  of which
• Individual farms - 4.736,6 thou. (99,5),
• Legally registered businesses 23,1 thou.(0,5)
• Utilized agricultural area - 13.939,5 thou.
  hectares ( market year 2001-2002) of which
• 7.715,6 thou. (55,4) individual farms
• 6.223,9 thou. (44,6) legally registered
  businesses

6
STRUCTURE OF HOLDINGS

• Average utilized agricultural area per holding -
  2,9 ha, of which
• Individual farms 1,6 ha
• Legally registered businesses - 269,3 ha

7
LIVESTOCK

• Bovines 2,949.1 thou. heads
• Pigs 5,200 thou. heads
• Sheep 7,220.8 thou. heads
• Goats 737.2 thou. heads

8
ROMANIAN AGRICULTURE FACTS AND FIGURES

• In 2003, the contribution of the agricultural
  sector to the GDP was 11.7.
• value of agricultural goods and services
  production ROL 396,038.2 billion (about 1.2
  billion ) out of which
• vegetal production ROL 250,187.0 billion
• animal production ROL 141,820.6 billion.
• Agricultural employment - 32 of the national
  labour force.
• Governmental support for agriculture is
  increasing from 9.2 thou. billion lei in 2001 to
  24 thou. billion lei in 2005

9
ROMANIAN AGRICULTURE FACTS AND FIGURES

• Productions
• cereal production24,662.3 thou. to. in 2004 in
  contrast with 12,653 thou. to. in 2003
• oilseeds production2,169.52 thou.to. in 2004 in
  contrast with 1,715.2 thou.to. in 2003
• livestock sector - there is a continuous
  increase
• bovine number in 2004 - 2,907 thousand heads in
  contrast with 2,870 thousand heads in 2000.
• pig meat production - 668 thousand tones in 2004.

10
ROMANIAN AGRICULTURE FACTS AND FIGURES

• EU is the main trade partner for Romania
• in the agri-food products sector - 67 of the
  total export and 52 of import.
• In 2004, the value of agri-food products exports
  has increased with about 22.4 as compared to
  2003.
• main exported products in 2004 are live animals
  (23,7 out of the total export), sunflower seeds
  (10.7), soybeans (5.2), maize (5.8), nuts
  (4.3) and fresh vegetables (4.2).
• In 2004 agri-food products imports have increased
  with 7.4 as compared to 2003.
• main imported products are grains (wheat, maize,
  barley), derivate products (meal and malt),
  sugar, cigarettes, tobacco, citric fruits,
  bananas and meat.

11
PRIORITY PROGRAMS

• Land property reform
• Stimulating that some of farm households turn to
  viable commercial family farms
• Efficient distribution of budgetary funds to
  support agriculture producers
• Sustaining agriculture production capitalization
  through market measures

12
PRIORITY PROGRAMS

• Institutional capacity for accesion
• Agriculture Paying and Intervention Agency,
  IACS, etc.
• Veterinary sector.
• Rural development and modernization
• Fisheries and aquaculture development
• Forestry administration, especially for private
  forests

13
Land Market

• Legal Framework for foreign citizens
• juridical person may obtain the property right
• on the agricultural land if they constitute as
  Romanian juridical persons
• the natural and juridical persons may obtain
• property rights upon real estates, including
• secondary residence, having the right of use upon
  land

14
Agricultural Land Price

• much lower than prices applied in EU countries
• great variation from one county to another
• lowest prices registered in the counties with
  the most fertile soil !
• minimum price 100 - 250 EURO/ha
• maximum agricultural land price 2000 /ha in
  western part of Romania

15
National financial support 2005/2006

• 50 free support from state budget for
  acquisition of tractors and machineries
• budgetary support for 50 of the price for
  purchasing certified seeds
• subsidies for irrigation water
• financial support for
• - producers that deliver milk on the dairies
• - bovines, pigs, sheep and poultry delivered to
  the slaughterhouses
• etc.

16
Already in Romania!

• Royal Brinkers Group BV
• Agrico Holland
• Friesland Coberco
• Holland Farming BV
• LNB International Group
• Plusfood BV
• Van Der Ploeg
• Unilever International
• Danone etc.