Romanian authorities are preparing an Emergency Ordinance to support the pig sector in 2025. The draft ordinance was published for a short public consultation on the website of the Ministry of Agriculture in the beginning of May.
The Ministry announced state aid of 1.4 billion lei (around 280 million EUR) for investments in pig farms. "The purpose of the normative act is to revitalize the pig sector in Romania, which has been affected by a continuous decline in pig numbers and a sharp increase in production costs. The programme aims to support investments in new capacities or the modernization of existing farms in conservation, contributing to strengthening food security and reducing the trade deficit," according to a statement from the ministry.
Thus, through the Programme, support to pig farmers would be granted for setting up housing places in pig breeding, rearing, and fattening farms. According to the draft, support of up to 65% of the eligible amount will be granted, or even up to 80% for young farmers, with a maximum eligible cost of 13,300 EUR per new place and 10,180 EUR per place in a farm in conservation.
Eligible beneficiaries are: registered individuals, individual/family businesses, agricultural companies, and legal entities operating in the pig sector, with the requirement to continue to carry out their activities for a minimum period of 10 years after the completion of the investment.
"As promised, we are revitalizing the pig sector and restoring its strategic place in the national agricultural economy. Through this programme, we are offering concrete support to Romanian farmers to develop and ensure Romania's domestic pork consumption needs. It is an investment in Romania's food security," said (caretaker) Minister Barbu.
The funds come from the from the state budget, through the budget of the Ministry of Agriculture. "The total budget is distributed in two distinct components, as follows: Component 1 - Investments in new housing facilities in pig complexes for breeding, rearing, and fattening (...): 50% of the total amount of state aid; Component 2 - Investments in accommodation facilities in pig complexes for breeding, rearing, and fattening with at least one livestock farm under conservation (...): 50% of the total amount of state aid," the draft states.
Applications for funding shall be submitted to the county directorates for agriculture, during the sessions to be announced by order of the Minister of Agriculture, accompanied by supporting documents such as: proof of ownership of the land, authorizations, feasibility studies, financial documents.
Projects will be selected based on the score obtained, depending on production capacity or agricultural area owned. The maximum investment implementation period is 48 months from the signing of the contract, with the possibility of extension for up to 6 months.
According to statistical data, the pig farming sector in Romania is in sharp decline, with pig numbers falling steadily: 3,784,507 heads in 2020; 3,619,581 heads in 2021; 3,328,734 in 2022 ; 2023 - 3,154,053 heads, 2024 - 3,015,178 heads.
Also, the percentage of consumption covered by domestic production decreased from 47% in 2022 to 46% in 2023 and to 45% in 2024. Consequently, the trade balance for 2024 recorded a deficit of 122.8 million EUR for live pigs and a deficit of 1.074 billion EUR for pork.
Note: as the current government is a caretaker government, the implementation of this programme might change once a new government is installed. However, the pig sector is expected to remain a priority sector for any future government, considering its declining trend and the high preference of Romanian meat eaters for pork. Its support will mainly depend on available budgetary resources.