Romanian agricultural forecasting for 2020

Associating, and the European funds can begin a new stage of development in agrobusiness.

AGRICULTURE. Associating, and European funds can begin a new stage of development in agriculture. Are young people returning to the villages?

2019 ended with smaller productions of cereals, vegetables and fruits than the previous year, due to prolonged drought or heavy rains, which affected the crops.

The new year is proving to be a challenge for the agricultural sector, one of the main priorities of the authorities being to draft the National Strategic Plan (NSP), while the biggest challenge for farmers will be facing the climatic conditions.

The new NSP will be directed to taking measures to combat the underground economy, setting up agricultural chambers, subsidies for the digitization of production, marketing products on the product chain, financing the investments of freshwater fish producers, allotting subsidies for agricultural producers who fit into the circular economy by delivering waste to energy production plants, or developing dual education.

5 TRENDS

♦ Norofert, producer of organic ecological fertilizers, and Holde Agri Invest, an entrepreneurial company operating agricultural land, will be listed on the Bucharest Stock Exchange at the beginning of 2020. Following the listing, the two companies expect a revenue growth of 25-30%, respectively 10-15%.

♦ Agricultural producers invest in processing, acquiring high-quality equipment and precision machines. Prodpork, a pork producer controlled by the farmer Călin Muscă, is currently running a 10 million euros investment in expanding its production capacity.

♦ Agricultural investors are now betting on livestock farming, specifically on cattle breeding farms. Last year, 11 companies attracted European funds for setting up cattle farms, investments that will be completed later this year.

♦ The number of vegetable producers will increase after the Ministry of Agriculture announced that it will subsidize 10% of the invoice amount for all vegetables delivered for sale.

♦ The number of ecological producers will exceed 10,000 this year, the current trend is growth, as more and more investors in the field rely on ecological products, and farmers switch from conventional to organic agriculture.

5 QUESTIONS

♦ Will new players emerge on the local market after the Chinese investors CEE Equity Partners and China National Agrochemical, and the Turks from Toros Tarim made acquisitions in Romania in 2019?

♦ Will farms be digitized in order to combat staff shortage?

♦ What will happen to the Unirea Trade House, a chain for Romanian agri-food products? Two stores were opened last year, but the budget was meant for 60. Will the expansion continue? 

♦ What will be the effects of the lack of rainfall in the winter season on the agricultural production this year?

♦ Will African swine fever be eradicated from Romania, will it be kept under control, or will it expand?

Farmland Romania