December 27, 2011

Valeriu Tabara, Minister of Agriculture and Rural Development believes that if Romania has modern storage capacities, larger than 30 million tonnes, as well as a chain of silos and harbours at the Danube, its grain production will be allowed to be listed on any world stock exchange.

"We have to develop our storage network for the grains and the technical plants so that it may reach 30 million tonnes, taking into account the possibility of increasing Romania's grains output. Our country's storage capacity attained 3.7 million tonnes, and more 16.6 million tonnes, at the yearend. Our current modern storage capacity practically amounts to round 20 million tonnes, which we have to continue developing," Tabara said.

Tabara stressed that the storage units of most producers stand horizontally, which prevents them from being operational during the storage time, because grains run the risk of decay. He also believes that new silos have to be built in the River Danube's ports. "It should be put pressure on the Romanian agricultural producers and the grain exporters to get silos erected in the Danube's harbours, because the Danube is the main transport corridor for the grains," Tabara pointed out.

The storage problem has not been solved in the vegetables and fruit sectors either, and where Tabara thinks Romania has never had enough strength to grow and store the entire quantity of vegetables it needs, due to the high energy costs, during the long extra-seasonal periods.

In his opinion, through the Common Agricultural Policy (CAP), Romania has to develop market measures, particularly in the fruit and vegetable growing, similar to those that have been enacted in Romania's viticulture.

He said that 15 storage capacities are currently under construction and they are designed to store 130,000 tonnes, beside the existing units that can store 270,000 tonnes. "Through the National Programme for Rural Development (PNDR) measures 211 and 123, I will back up the development of such a storage unit, same as through the measures conducted by the Payment and Intervention Agency in Agriculture (APIA) in its relation to the producer groups," Tabara stressed.

Romania's grain production scored almost 24 million tonnes this year, by over eight million tonnes, more than last year, whereas the vegetable production is expected to reach 3.5 million tonnes, by 11% higher than in 2010.