In Romania, the cultivation of the land and the processing of agricultural products has always been of significant economic and social importance. With the return to the competitive market economy model in the 1990s, because of the insufficient level of local private capital and public policy support, the competitiveness of the agri-food sector remained weak in relation to that of the external supply. On the other hand, domestic consumption has increased significantly, most of the time being the most important part of the local growth model and often stimulated by fiscal policies.

Cumulated for 2019, the trade deficit from trade in goods was about 82.1 billion lei, of which the trade deficit with products from the first four groups of goods according to the combined nomenclature was about 5.9 billion lei (I. Live animals and animal products, II. Vegetable products, III. Animal or vegetable fats and oils, IV. Food, beverages and tobacco). For the first 11 months of 2020, the trade deficit with products from the same first four representative groups within the combined nomenclature rose to almost 9 billion lei, ie over 11.3% of the total deficit of trade in goods for the period (79.5 billion of lei). Therefore, in the context of the crisis caused by the COVID-19 pandemic, this vulnerability has intensified and its negative effects are expected to continue to increase during 2021 in the context of the significant loss of agricultural production caused by the drought that subsequently lead to significant financial difficulties for farmers, which adds to those generated by the pandemic.

We need to create more jobs and grow economically, but some of the challenges are that agriculture is losing jobs and is facing cyclical developments that are closely linked to long-term changes in the temperature regime and that of rainfall. It is also still significantly exposed to the risks posed by climate change, which is still exceedingly difficult to manage through traditional instruments (insurance, financial transactions).

However, this is not an irreversible fate. It is possible to bring the agri-food sector back on a path to improving competitiveness and to having a more stable and sustainable contribution to economic growth, including for improving the external balance. To get there we need an adequate mix of policies, to which there are already proposals that I will refer to later.

Economic growth and the number of jobs previously involved an effort for increased productivity and increased competitiveness. Growing production with lower costs does not necessarily have to lead to job cuts (for example as an effect of investing in advanced technologies and equipment), as growth across the sector can create more jobs than redundant ones.

We must have on our agenda as a priority a sustainable development that aims to protect the environment. We need less water pollution from nutrients and pesticides, to stop soil degradation, to have fewer negative effects of pesticides on biodiversity and to better respond to internal and external demand that in recent years is increasingly focused on organic products. This effort is also supported by European policy, which has created facilities for the development of organic farming that we may be able to make better use of in the future than we have been able to do so far.

At the same time, we need a territorial balance, because modern society no longer accepts that the more fragile regions (from the perspective of resources) and less developed are left in economic decline and demographic abandonment. But the key to this is investment: from education and training of the (future) appropriately qualified workforce to equipment and infrastructure.

Of course, under normal conditions, the profitability of companies in the field of agriculture is not among the highest, compared to other sectors of activity, as shown by publicly available data on the website of the Ministry of Finance. An average return on assets calculated based on this data places agricultural companies at a level of about 5.38% in 2019 (before the crisis), almost half compared to the construction sector but still more than double that of utilities. It shows that, given the important prospects of this sector, there is certainly a sustainable basis for increasing the efficiency and profitability of agricultural investment activities.

One of the main causes of the variability of the performance of agricultural firms is given by the volatility of agricultural product prices which has amplified because of greater openness and integration with international markets. Climate change has also led to a higher frequency of extreme events, which have an impact on production and markets and contribute to increased volatility. However, in Romania the average return on assets of companies in this sector has not fluctuated so much during the last five years, but varied between a minimum of 3.66% in 2015 (a weak year in terms of profitability for all sectors of activity) and a maximum of 7.34% in 2017 (MFP data, NBR calculations).

Obviously, the contribution of the agri-food sector to the well-being of society is not limited to maintaining balance in foreign trade activity, although this is an especially important one. From agriculture and the food industry, society wants more jobs, economic growth, better environmental protection, but also healthy and nutritional food and a territorial balance that leaves no regions behind.

In the context of the above, lending by banks and NFIs for the agri-food sector has increased during the last 6 years but not at a very fast pace. The cumulative value of the exposures of the two categories of financiers towards companies in this sector increased by approximately 31% from about 17.5 billion lei in December 2015 to over 23 billion lei in December 2020, and during the pandemic period it increased by about 6.8% (December compared to March 2020). From the statistics the largest share is the financing granted to companies in the field of cultivation of non-permanent plants (36% of the total in December 2020, mainly for cereal crops), on the second place being those in the field of animal husbandry (13% of the total in December 2020). Exposures of banks to companies in the field of canning, food or beverage manufacturing with a higher degree of processing are lower, together accumulating about 41% of the total in December 2020.

There is a very high heterogeneity in the financial health of agri-food firms that is holding back the development of lending to this sector and points out that the proposed measures for these sectors should be targeted, all the more so as constraints on budgetary resource allocations increase. In addition, size matters a lot in this area. Most companies with agri-food activity are micro-enterprises and over the years have failed to move into a larger size group.

Agriculture was in the attention of the National Committee for Macroprudential Oversight (CNSM) last year. The Committee considered that food imports significantly higher than exports had created a vulnerability, with possible systemic potential, for at least two reasons: (i) the experience of other countries shows a close relationship between the deterioration of the current account deficit and the onset of a financial crisis. or balance of payments; and (ii) in the light of the lessons of the crisis generated by the current health crisis, ensuring food security becomes a priority.

The first recommendation is to increase the emphasis on developing a green, more environmentally friendly economy. The European Union allocates important funds to this objective, and the agri-food field in Romania can relatively easily qualify to the requirements. European statistics have identified Romania’s agriculture among the leading sectors in CO2 or other greenhouse gas emissions. CNSM’s recommendation was that the Government, through the Ministry of Agriculture and Rural Development (MADR), develop and budget with priority programs in the amount of at least 9.4 billion euros to implement the EU strategy to reduce climate risk (“From Farm to Farm Fork ”), in line with the specific objectives of climate change in the future Common Agricultural Policy. It is recommended that these programs be developed in such a way as to facilitate green funding. In fact, many countries in the region (Poland, Hungary, Slovenia, etc.) have already issued such green bonds, many issues being made by governments themselves.

The extensive technologizing of the agri-food sector is another CNSM recommendation. The topic is also at the top of the European agenda and significant funds will be allocated in the coming years for implementation. Romania could benefit considerably from this alignment with European priorities, for at least two reasons. First, Romania is at a disadvantage at European level in the field of innovation (including in agriculture), so any progress is welcome. For example, only 1 percent of companies operating in the agri-food sector use industrial robots (at the other extreme are the Netherlands with 22 percent and Sweden with 31 percent). Secondly, Romania has many strengths to move to the widespread use of digital technologies in agriculture and food industry: telecommunications infrastructure, implicitly good internet access, many IT specialists, generally favorable attitude of companies and the population in assimilation of digital technologies. In fact, digital technologies could compensate for part of the disadvantage of the pronounced fragmentation of agricultural land in Romania (by far, the highest in the EU). CNSM’s recommendation is that the Government, through MADR, develop and budget with priority programs in the amount of at least 0.5 billion euros that use the potential offered by digital technologies.

Obviously, there is no single answer to the challenges of competitiveness and development in the agri-food sector, the solution of which would lead to positive chain effects both from the perspective of macrostability and economic development in general and the well-being of the population. That is why the CNSM initiative unanimously embraced by the most important categories of actors with relevance in this field proposes a balanced set of measures. They replace a rather fragmented approach at present (because other measures and programs existed before the CNSM’s proposed framework). There is therefore a need for a truly strategic and as uniform an approach as possible to prevent waste of resources and concentration of efforts, which in my opinion is one of the merits of the CNSM package of recommendations.

Secondly, coherence is essential. Therefore, it is particularly important to find ways to improve governance in order to mobilize the necessary tools at the local level, to develop truly economically viable projects and to support the growth effort at the level of all regions.

All these things force us to follow not only the presentation of the problems induced by the need to develop the agri-food sector but also the efficient way in which the solutions (many of them being already discussed and known in the public space) are put into practice. A country’s ability to make progress is clearly linked to how it can implement sectoral public policies with rapid results and achieve rapid development. Not at all simple, this is our challenge in a dynamic world, where flexibility and innovation are necessary but not sufficient premises for success.

Source: Business Review March 2021

Romanian farmers can earn extra income as a result of their involvement in combating climate change

Romania has farmers who are shouldering the task of creating a better climate context for the future generations by adapting their tillage and cultivation techniques and making the transition to conservation agriculture. Commoditrader, the digital trading platform for agricultural commodities, supports farmers in the transition process, rewarding them by selling carbon certificates on the international market. Farmers can earn an additional 45-105 euro/ha/year, by capturing in the soil 3-7 tons of CO2e/ha/year, while implementing practices of conservation agriculture.

Arnaud Perrein, vice-president of the Romanian Corn Producers Association with 28 years’ experience in the Romanian agriculture industry, cultivates 4,000 ha in Ialomița County, at Sopema Farm. For several years, he has adopted a set of measures that contribute to the improvement of his cultivated soil, so that it is more productive and profitable.

Currently we only plow 200 ha of the 4,000 we cultivate. We decided to make the transition from traditional to conservation agriculture primarily out of personal beliefs, because we want to leave something good behind for future generations and then because, personally, I am open to experimenting, losing or gaining through agriculture I practice”, said Arnaud Perrein.

The farmer says that on the surfaces he works he has hard and clay soil, worked deep, which forced him to do less tillage. However, he also has surfaces with very light, sandy lands, where he encounters problems due to wind erosion. This forced him to change the way he is farming, adopting new techniques.

Farmers get real benefits from the transition to conservation agriculture

Conservation agriculture is based on five essential principles: crop rotation, reduction of soil disturbances, optimal distribution of residues, green fields throughout the year and optimized fertility. Crops become more drought tolerant and absorb rainwater more efficiently, which contributes to better nutrient storage and improved soil quality.

The transition to conservation agriculture favors biodiversity, generating a richer biological activity. Moreover, by adopting this type of agriculture, greenhouse gases and CO2e can be stored, and this can be quantified, verified and transformed into carbon certificates that can bring financial benefits to farmers.

Globally, farmers are becoming aware of the impact of their activity on the environment, through CO2 emissions, influencing soil quality and thus the crops obtained. More and more of them are starting to adopt conservation agriculture, changing their traditional practices with more sustainable ones.

Private initiatives have begun to emerge to remunerate and stimulate those eager to get involved and make a difference for future generations. Through carbon certificate issuance programs, farmers get an additional crop at the end of the season, receiving payment for the certificates obtained.

One such program is CommodiCarbon, launched a few weeks ago by Commoditrader, the digital trading platform for agricultural commodities, through which farmers can obtain additional financial support.

“We are aware that our program brings novelties in terms of agricultural techniques that farmers have practiced for years. Our goal is to encourage more sustainable and efficient agricultural production for farmers. Our initiative is private and voluntary, we issue voluntary carbon certificates to farmers who enroll in the program and who are eager to convert to conservation agriculture. Subsequently, we financially reward them for their efforts in selling these certificates to international companies that want to reduce emissions globally. The demand for carbon certificates is constantly growing worldwide and is becoming increasingly important in combating climate change”, says Alexandra Suciu Sørensen, Commoditrader Market Development Romania.

Arnaud Perrein, who has been practicing conservation agriculture for several years, says he does it out of conviction and he experiments a lot.

“I follow my faith even if I can lose money to experiment on a certain culture or technology. We tried to calculate how much CO2 we use and how much CO2 we capture so as to improve this ratio. We are trying to have the basics, calculation protocols, because we will need benchmarks to be able to compensate each ton of carbon consumed, not only by the agricultural production obtained, but also by methods such as the digester and methane production, photovoltaics etc. That is at least the goal I set for myself.

Furthermore, Commoditrader helps us to grow towards a more consistent absorption of carbon and GHG in the soil in order to improve it over time. The good part is that we can capitalize on this through carbon certificates. It is a difficult road, the landmarks in France or Denmark may not be the best adapted here in the south of Romania. If we do nothing, we will not gain experience in this field. We will have to work hard to find ways to capture more carbon and quantify it correctly and responsibly.”

Regarding the remuneration part, Arnaud Perrein appreciates that it is a good incentive for farmers.

“Through CommodiCarbon we can capture somewhere between 3-7 tons of CO2e/ha/year, meaning an additional gain of about 45-105 euro/ha each year, when the certificates are sold in the market. Of course, the earnings can vary from farm to farm, but it’s very good that there is a remuneration – it’s a start and it will help us, the farmers, to accelerate the steps towards a better knowledge of the soil we work and in at the same time to participate in reducing global warming.”

Commoditrader organizes the first educational webinars on conservation agriculture and carbon certificates

Commoditrader is organizing the first educational webinars of this year, on 19th and 21st of January, speaking about conservation agriculture concept, the technical conditions of practice, also challenges and benefits in the short and medium term will be explained. Information will also be provided on the CommodiCarbon program – the applicability of carbon certificates and the benefits to farmers. Farmers and all those interested in the subject can register at the e-mail address

Conservation agriculture in the context of European norms

Conservation agriculture, or carbon farming, has already been included among the main measures included in the Common Agricultural Policy (CAP), included in the European strategic plan to be defined by the end of 2021. It is also included in the strategy for the development of the sector, medium and long term agri-food, for the horizon 2020 – 2030, of the Ministry of Agriculture and Rural Development.

The European model of agriculture for the coming years aims at sustainable development and greater care for the environment. The Common Agricultural Policy maintains the first pillar of subsidies, but tries to bring attention to the integrated development of the rural economy and the protection of the environment, through the second pillar.

At present, the CAP does not make it a real obligation for the Member States of the European Union, but by the early implementation of sustainable practices, farmers can be financially rewarded for their efforts and involvement.

Source: Business Review January 2021

Nestlé redoubles efforts to combat climate change

As a signatory of the UN ‘Business Ambition for 1.5°C’ pledge, Nestlé is one of the first companies to share its detailed, time-bound plan and to do so ahead of schedule. The company is taking measures to halve its emissions by 2030 and achieve net zero by 2050 – even as the company grows.

Actions focus on supporting farmers and suppliers to advance regenerative agriculture, planting hundreds of millions of trees within the next 10 years and completing the company’s transition to 100 percent renewable electricity by 2025. Additionally, Nestlé is continuously increasing the number of ‘carbon neutral’ brands.

Nestlé Chairman Paul Bulcke said, “The Board recognizes the strategic importance of taking decisive measures to address climate change. It supports accelerating and scaling up our work to ensure the long-term success of the company and to contribute to a sustainable future for generations to come.”

This roadmap is the result of a complete review of Nestlé’s businesses and operations to understand the depth of the challenge and determine the actions needed to address it. The company emitted 92 million tonnes of greenhouse gas emissions in 2018, which will serve as the baseline for measuring progress.

“Tackling climate change can’t wait and neither can we. It is imperative to the long-term success of our business,” said Mark Schneider, Nestlé CEO. “We have a unique opportunity to address climate change, as we operate in nearly every country in the world and have the size, scale and reach to make a difference. We will work together with farmers, industry partners, governments, non-governmental organizations and our consumers to reduce our environmental footprint.”

Nestlé’s work to get to net zero spans three main areas:

  • The company is already working with over 500 000 farmers and 150 000 suppliers to support them in implementing regenerative agriculture Such practices improve soil health and maintain and restore diverse ecosystems. In return, Nestlé is offering to reward farmers by purchasing their goods at a premium, buying bigger quantities and co-investing in necessary capital expenditures. Nestlé expects to source over 14 million tons of its ingredients through regenerative agriculture by 2030, boosting demand for such goods.

Nestlé is also scaling up its reforestation program to plant 20 million trees every year for the next 10 years in the areas where it sources ingredients. More trees mean more shade for crops, more carbon removed from the atmosphere, higher yields and improved biodiversity and soil health. The company’s primary supply chains of key commodities, like palm oil and soy, will be deforestation-free by 2022. Through efforts like these, Nestlé is building longer term partnerships and providing farming communities with greater certainty and higher incomes.

  • In its operations, Nestlé expects to complete the transition of its 800 sites in the 187 countries where it operates to 100% renewable electricity within the next five years. The company is switching its global fleet of vehicles to lower emission options and will reduce and offset business travel by 2022. It is also implementing water protection and regeneration measures and tackling food waste in its operations.
  • Within its product portfolio, Nestlé is continuously expanding its offering of plant-based food and beverages and is reformulating products to make them more environmentally friendly. It is increasing the number of ‘carbon neutral’ brands it offers to give consumers the opportunity to contribute to the fight against climate change. Garden Gourmet plant-based food as well as Garden of Life supplements will achieve carbon neutrality by 2022; Sweet Earth plant-based food, among other brands, will do the same by 2025. These come on top of Nespresso, Pellegrino, Perrier and Acqua Panna’s commitment to carbon neutrality by 2022, with the rest of the Nestlé Waters category achieving the same by 2025.

Magdi Batato, Executive Vice President and Head of Operations, said, “With nearly two-thirds of our emissions coming from agriculture, it is clear that regenerative agriculture and reforestation are the focal points of our path to net zero. These efforts will reduce emissions and improve biodiversity at scale. We will also continue to eliminate emissions from our operations and make improvements in our product portfolio. We have our work cut out for us and we are committed to delivering.”

Nestlé has had its emissions reduction targets approved by the Science Based Targets initiative (SBTi), as consistent with levels required to meet the goals of the Paris Agreement. SBTi is a collaboration of non-profit organizations that is considered the international gold standard on assessing net zero commitments. Nestlé will provide annual updates to provide transparency on its progress.

Source: Business Review Jan 2021

Merry Xmas and welcome 2021!

A Merry “Rose” Christmas and Happy New Year to all our suppliers, clients from our BIO FARM CRUCEA STAFF!

Rose is the symbol of youth and express a love just born. Rose is a color that derives from red, which means passion, and it is mitigated by white purity.
It tells us about romanticism, fashion, beauty, sweetness, delicacy, refinement, calm and tenderness.

Un Buon Natale rosa ed un Felice Anno Nuovo a tutti i nostri fornitori, clienti dal nostro STAFF DI BIO FARM CRUCEA!

Il rosa è il simbolo della giovinezza ed esprime un amore appena nato. Il rosa è un colore derivato dal rosso, che vuol dire passione, ma mitigato dalla purezza del bianco. Indica romanticismo, fascino, bellezza, dolcezza, femminilità, delicatezza, raffinatezza, calma, tenerezza.

Un Crăciun fericit “roz” și un An Nou fericit tuturor furnizorilor noștri, clienților de la PERSONALUL nostru BIO FARM CRUCEA!

Rozul este simbolul tinereții și exprimă o dragoste nou-născută. Rozul este o culoare derivată din roșu, ceea ce înseamnă pasiune, dar atenuată de puritatea albului. Indică romantism, farmec, frumusețe, dulceață, feminitate, delicatețe, rafinament, calm, tandrețe.

Inainte impreuna 2021

WE BUY your organic 2020 crop!

Romanian farmers of Dobrogea, Ialomița and Tulcea Regions: do you want to sell your production to a reliable partner? if you produce CERTIFIED organic soyabeans, sunflower, proteic pea are welcome to contact us!

Starting this harvesting summer (2020) BIO FARM CRUCEA begins its trading commodities: OUR PROFESSIONAL STAFF is happy to welcome YOU on board as part of our NEW BIG FAMILY!

Local farmers: don’t hesitate! If you want to get the right “added value” to your hard work and to be remunerated correctly….CALL US TODAY!

BIO FARM CRUCEA: masuri pentru desfasurarea activitatii in termeni restransi si de precauție maxima

După cum știți, virusul COVID-19 se răspândește cu rapiditate și acum e momentul ca această răspândire să fie combatută efectiv pe teritoriul României. De aceea, autoritățile au emis anumite directive pentru a reduce răspândirea lui, dar în acelasi timp fiecare dintre noi trebuie să depună eforturi personale în condiții de maximă responsabilitate socială pentru a putea lupta împotriva pandemiei declarate. Este momentul în care trebuie să ne gândim cu precadere la viitor și să înțelegem că măsurile pe care le putem implementa în acest moment de limitare a interacțiunii sociale sunt singurele care ne pot da speranța că această situație va avea un final cât mai scurt și mai lipsit de consecințe majore.

Datorită responsabilității sociale ce a reprezentat mereu o componentă definitorie a atitudinii față de activitate și furnizori a Bio Farm Crucea Srl, am implementat mai multe măsuri de siguranță în sediul noastra.

 În prezent, există o politică „fără vizitatori” în toate locațile Bio Farm Crucea .

Fiecare lucru îl vom putea face împreună respectând normele de evitare a contactului între persoane. Astfel vă vom acorda suportul în activitatea dvs. utilizând toate modalitățile de comunicare la distanță  (e-mail, telefon mobil, Whatsapp, etc. etc.).

Cu ajutorul și înțelegerea dvs. avem încrederea că vom trece cu bine peste această perioadă care ne pune la grea încercare.

Dacă aveți întrebări sau nelămuriri specifice, vă rugăm să contactați responsabilul Elena Staicu:

Holde Agri Invest attracts RON 10 million from BVB investors

Holde Agri Invest, a Romanian agricultural company operating farmland, has successfully closed a private placement offer for its shares, having raised RON 10 million from Bucharest Stock Exchange (BVB)investors. The offer took place between December 16th and 23rd, 2019.

The intermediary to the transaction was SSIF BRK Financial Group, while the private placement was carried out through the POFX trading system administered by the Bucharest Stock Exchange, intended for public offers and private placements.

During the offer period, the company has placed 8,984,267 new ordinary shares, which were sold for RON 1.1135 per share. 27 investors have participated in the offering, with the average subscription being of approximately RON 370,000. Following the private placement, the share capital of Holde Agri Invest will increase up to RON 32.3 million.

In line with the information provided in the Offering Document, the company’s share will float on the AeRO market of the BVB within 6 months since closing the private placement, thus by end of June 2020. Once floated on AeRO, Holde will be the first agricultural company to be listed on BVB. The company’s stock will be available for trading under the HAI symbol.

 “We thank all the investors for participating in our private placement. This moment marks a new beginning for Holde Agri Invest, that of becoming a publicly-traded company. The capital raised from BVB investors will fuel expansion of the operated farmland, thus helping us become a significant player in the local agricultural market. We look forward to HAI’s debut on the AeRO market by the end of the first half of this year and until then, we continue the implementation of our ambitious development plan,“ said Liviu Zagan, CEO at Holde Agri Invest.

The capital raised during private placement will be used to expand the arable area through the acquisition of a new farm. Once the investment is closed, Holde Agri Invest will boast at least 7,000 hectares of arable land. Holde’s goal is to become one of the largest Romanian players on the local agricultural market, reaching a minimum of 20,000 hectares of cultivated land within the next 10 years. To reach this objective, Holde aims to invest over EUR 50 million and to promote and develop a modern agricultural business where efficiency and operational excellence are the main driver of the results.

“With the closing of Holde Agri Invest’s private placement, we have brought to Bucharest Stock Exchange investors a premiere on the local capital market – the first publicly traded agricultural company. Through HAI shares, we propose to BVB investors not only the opportunity to diversify their portfolios but also profitable investment build on corporate governance and solid business principles, in an industry which has historically brought profitable returns to its shareholders,” said Eugen Voicu, Member of the Board at Holde Agri Invest SA and founding shareholder of Certinvest.

The concept for Holde was invented in 2016 by four Romanian entrepreneurs, Liviu Zagan, Robert Maxim, Matei Georgescu, and Alexandru Covrig. In 2017, the founders have joined forces with the team from a local asset management company, Certinvest and together, in 2018, they established the innovative business model behind Holde Agri Invest SA. Soon after Holde received the first external investment from Vertical Severn Group, a fund established by Romanian entrepreneurs Iulian Cîrciumaru and Andrei Cretu. After closing private placement, Holde Agri Invest SA has 52 shareholders. Vertical Seven Group remains the biggest shareholder of Holde, having 19.6 percent stake while remaining investors have holdings between 9 percent and 0.1 percent in the business. The business model envisages that no single shareholder holds a majority stake in the company.

SOURCE: Business Review – January 2020

Good year for Romanian agriculture: turnover up by EUR 500 million in 2019

The turnover of local companies operating in the agriculture sector will increase by almost half a billion euros in 2019, placing agriculture among the strategic sectors of the Romanian economy, according to the estimates of KeysFin specialists.

However, the results could have been better had the weather been more favorable. If in 2018 agricultural production in Romania reached historical highs, with records for wheat and maize, this year statistics are showing a decrease, not just in the case of domestic agriculture, but also at the European level, due to the extreme climatic conditions.

“Romania occupies a leading position among European countries in agricultural production, and the turnover and profit of local companies represent an equally good barometer for the successes of Romanian agriculture. Even though not all companies in the field use drones and other modern technologies to monitor and protect agricultural crops, investments and programs in this sector, both by authorities and private entities, have targeted useful changes, which have contributed fully to the development of agriculture, so our team of experts foresees an increase of this sector in 2019, by about 5 percent compared to the total turnover of 2018 of companies in the field,” said Roxana Popescu, managing director of KeysFin.

In 2018, the turnover of the local agriculture companies reached RON 43 billion, registering an increase of 14.7 percent compared to the results of 2014.

The largest agriculture company was the Romsilva Forest National Agency, with a turnover of RON 2.3 billion (5.3 percent of the total) in 2018. The ranking continues with Smithfield Romanian (RON 868 million), followed by Promat Comimpex ( RON 715 million), Agro-Chirnogi (RON 698 million) and Transavia (RON 597 million).

The 10 most important players in agriculture had total turnovers amounting to RON 6.8 billion, concentrating 16 percent of the total turnover of this sector in 2018.

New records for Romania

Plant production in Romania has increased by 26 percent over the last five years, reaching EUR 13.9 billion, ranking 6th in the EU in 2018, with almost 6 percent of the total.

According to data from the National Institute of Statistics, despite dangerous hydro-meteorological phenomena, last year Romania ranked first in maize among the member states of the European Union, both in terms of cultivated area and production, with 18.7 million tonnes.

Moreover, Romania reported last year the highest production of sunflower in the EU, of 3 million tonnes, being followed in the ranking by countries such as Bulgaria, Hungary, France and Spain.

Romania also recorded 7.3 percent of total wheat production at EU level, 10.1 million tonnes, thus ranking 4th, after France, Germany and the United Kingdom.

In the case of soybean production, Romania occupies the second position both from the point of view of the cultivated area and that of the production area, accounting for over 16 percent of the total EU.

Half of companies see profit

Despite the challenges related to unpredictable weather conditions or difficult access to finance, of the more than 23,500 companies operating in the agricultural sector, approximately 13,600 (58 percent) made a profit, while 7,200 (30.5 percent) registered losses.

Source: Business Review – November 2019