Romania Benefits from Global Agri Shortages

Romania Benefits from Global Agri Shortages
Ziarul Financiar – January 9, 2008

The increasingly high demand for food and biofuels (which are promoted by the EU) will bring Romanian farmers business increases of up to 30% against 2007.

The cumulated business of the leading players in the agricultural sector is expected to reach 500 million euros this year, after many saw losses in 2007.

According to experts, in Romania, the high prices of cereals and fuel crops will follow an international trend in 2008 and match the high level reached last year. “On the world market, there is a severe shortage of food and agricultural products, after last year’s disastrous yield and high levels of consumption in Arab countries and China, where demand is very high.

In Romania, although prices were high, they failed to match those on international markets. Farmers have to adapt to the global market if they want to survive, especially since agriculture is the future. People have to eat everywhere, whether they are in Arad (a Romanian town) or in China,” said Adrian Porumboiu, owner of Racova Agro Pan Grup in Vaslui. The businessman invested heavily in technology and fertilisers for over 40,000 ha of farmed land. Of these, 26,000 ha are allocated for wheat (up 2,000 ha on last year), 14,000 ha for rapeseed crops, and 300 ha for sunflower crops. This year, the company estimates to post a business worth around 195 million euros, up 15% on 2007, when turnover amounted to 170 million euros.

After a disastrous year, which saw several crop yields cut in half, farmers are now putting their faith in the potential of this sector.

Interagro intends to rely on a high output and a turnover worth 195 million euros, up 30% on last year, which reached 150 million euros, according to the company’s management.

“Worldwide, agriculture has seen an unprecedented increase. We are relying on corn crops this year, which will be processed in the bioethanol plant,” explains Ioan Niculae, owner of Interagro.