The end of the old year and the beginning of the new year is usually a good moment to make reflective analyses and think of possible future strategies, programs and measures. In the last part of 2025, the Concordia Employers' Confederation launched the study "Analysis of the added value and contribution of three strategic sectors to the national economy: primary agricultural production, food processing, and agri-food distribution and sales," conducted by Deloitte Romania.
The analysis was carried out as part of an EU-financed project, the aim of which was to strengthen the Concordia Employers' Confederation's capacity to substantiate and support evidence-based public policies. The study examines three areas in the agri-food economy – primary agricultural production, food processing, agri-food distribution and sales – to identify solutions to reduce the trade deficit, increase added value, productivity and competitiveness.
Concordia is an employers’ confederation which brings together 20 industries in Romania, representing more than 4,500 companies with 450,000 employees and a total contribution of 30% to Romania’s GDP.
Background
Romania has one of the largest agricultural areas in the European Union – approximately 57% of the national territory – but productivity and the degree of integration of production into value chains remain below the European average, and exports continue to be dominated by primary products with low added value.
The agri-food trade deficit reached €3.3 billion in 2024, contributing more than 10% to the economy's total trade deficit – a structural problem that requires investment, resources, integration, and modernization policies.
According to the study (in RO language), Romania has the potential to become a competitive player in the European agri-food market if it develops coherent and predictable policies that stimulate investment, reduce fragmentation, and encourage cooperation between farmers, processors, and retailers.
A three-focus study
Three strategic areas that define the capacity of Romanian agriculture to generate added value are analyzed:
- Primary agricultural production, where most of the resources are located, but also where the most acute structural problems lie – from land fragmentation to an aging workforce.
- Food processing, where there is the greatest potential for economic transformation, but productivity is three times lower than the European average.
- Distribution and sales, where the lack of commercial infrastructure, wholesale markets, and a national branding strategy affects the competitiveness of Romanian products on the domestic and foreign markets.
All these areas must be viewed within a unified vision that integrates the principles of sustainability and adaptation to climate change in order to strengthen the resilience of Romanian agriculture and increase its long-term competitiveness in the context of European green transition objectives.
Primary agricultural production: consolidation, financing, and young farmers
The study shows that the primary sector is affected by excessive land fragmentation, insufficient irrigation infrastructure, and difficult access to financing. Over 40% of farmers are over 65 years old, and 97% of farms are subsistence or semi-subsistence. "Romanian agriculture does not lack resources, but rather integration and strategic planning. We need farms that produce, process, and sell locally, in networks that increase added value in the economy," the study concludes.
Main proposed actions:
- A national strategy for small and family farms, including state guarantees for investments, micro-grants, and simplified taxation.
- Expansion of collection and storage infrastructure.
- Programs for young farmers and for their association in functional cooperatives.
- Integration of crop and livestock production to create competitive and circular mixed farms.
Food processing: modernization, integration, use of by-products, export promotion
The processing sector remains the least developed link in the agri-food chain, even though it has the greatest potential for creating added value. Currently, productivity is three times lower than the EU average, and some processing units operate at only 20% of capacity.
The main proposed courses of action are:
- A national investment and technological modernization program in the agri-food sector, focusing on automation, digitization, and energy efficiency.
- Vertical integration between farmers, processors, and retailers to ensure stable flows of raw materials.
- Valorization of by-products – for example, transforming whey or mash into value-added products, following the Polish model.
- Promotion of exports through a more coherent system of representation at European and international level.
Distribution and sales: short chains, modern wholesale markets, and national brand
The distribution sector is affected by a lack of logistics and commercial infrastructure, market fragmentation, and insufficient promotion of Romanian products.
Key recommendations:
- Develop short supply chains to facilitate direct links between producers and consumers.
- Creation of an agri-food intermediation platform, a public-private hub for the collection, storage, and promotion of Romanian products, inspired by models in France and Spain.
- A national branding strategy to increase the visibility of agri-food products on domestic and foreign markets.