October 31, 2018

 

Romania shows sterling agricultural performance in 2018

 

 

Romania is going through its best agricultural year in history, led by record production of wheat and corn worth nearly 8 billion euros, according to KeysFin experts, Business Review reported.

 

Data from the Agriculture Ministry shows this year's wheat production to be 200,000 tonnes higher than last year, exceeding 10 million tonnes, while corn would be between 14.5 and 15 million tonnes, compared to 11.8 million tonnes to be harvested in France.

 

In other words, Romania will become the largest European corn producer, according to the estimates of the General Association of Maize Producers (AGPM). The country also has a good production for barley, which is much higher than last year.

 

According to KeysFin analysts, spectacular performance in the crop segment is due to major investments in the segment.

 

"Significant investments have been made in optimising production flows, from using efficient seeds to streamlining and upgrading crop maintenance and mechanised harvesting, including through satellite monitoring. In many ways, Romanian agriculture has taken huge steps to modernisation, and the effects are seen in growing crops from year to year," KeysFin analysts show.

 

Romanian agriculture currently operates about 12,727 companies in plant cultivation, which generated over 64% of all agricultural turnover last year. More than 3,247 companies (29% of total turnover) are engaged in animal husbandry, and 1,272 companies are active in the mixed agricultural activities sector, which provides 7.6% of the total turnover.

 

"Excellent production results for wheat and maize would make a significant contribution to this record, but unfortunately, there were major problems in the livestock sector, where swine fever has significantly affected the affairs of producers and distributors," the experts say.

 

Despite swine fever issues, the interest for agriculture is growing among investors. The number of related companies increased by more than 7% compared to 2013 to 17,246. 1,450 new companies were set up in the first 7 months of 2018 (a 27% increase over the same period in 2017).

 

"Romanian agriculture is in the process of consolidation, as many mergers and acquisitions have taken place in the market during the last two to three years. They are mainly foreign investors who have taken over large areas of land and farms, the logistics support that allowed the development of these record crops, despite drought problems," said the experts.

 

According to KeysFin data, the largest businesses in Romanian agriculture are in the counties of Timis (RON 2.85 billion), Călăraşi (RON 2.54 billion), Constanţa (RON 1.93 billion), Buzău and Satu Mare with businesses of RON 1.6 billion each.

 

For the top five livestock breeders, Smithfield Romania SRL ranks first, with turnover of RON 920.1 million, followed by Transavia SA with RON 531.5 million, Agrisol International SRL (RON 291.5 million), Avicola Buzau SA (RON 264.3 million) and Avicarvil SRL (RON 159.3 million).