Romania, Europe�s third biggest agricultural country after France and Germany

Romania may become third biggest agricultural country in Europe, outranked by France and Germany, in context of a better absorption of European funds up to 2013, major foreign direct investments and governmental assistance, reads a report framed by BCR.

According to BCR report, “Romania’ agriculture between potential and reality”, external funding is vital for agriculture, as the governmental support will be limited in the following years.

Same report reads that the fragmented structure of the agricultural surface is a drawback in drawing new investments, denting labor’s output.

“Romania is well-positioned in terms of agricultural resources. The croft covers 39.5% of overall territory, and only five countries in the world are better positioned than Romania in these terms”, reads the report.

Domestic agricultural sector is seen as a primary beneficiary of Romania’s accession to EU membership.

“Opportunities emerge from major European funds that can be drawn within joint agricultural policy of nearly 7.5 billion euros in 2007-2013 interval”.

The document stresses that banks have directed their offers mostly on big clients, rather than little ones, that should have been the primary beneficiaries of the national programs, and this approach is linked to the availability level in terms of risk assumption.

According to BCR, yearly fluctuations of agricultural output gained magnitude, the downside evolution being ascribed on bad weather rather than output earnings.

Investments volume dropped, and foreigners’ interest in this sector is low.

Land acquisitions have had a speculative role and maintained the productivity at a very low level. “The price of crofts rose fivefold in the past five years up to 1,000-3,500 euro/hectare, whereas is still three to sevenfold down than European average. Forecasts on the profile market points out a flat evolution of growth trend in the past few years,” reads the report.

The average crofts are by far below the European standards, 2.1 hectares for individual agriculture and 263 hectares for collective agriculture in 2005.

Translated and adapted by Camelia Oancea.

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