The sector has been steadily growing over 2019-2023, however it stays well below its development potential due to weak domestic demand and fragmented production structure. The evolution of the Romanian organic farming sector was briefly analysed by research assistant Andreea-Daniela Giuca (Research Institute for Agricultural Economy and Rural Development, ICEADR Bucharest) in a recent article published by Business Press Agricol.
Upward trend
The agricultural area used for organic crops saw a steady increase of approximately 76% between 2019 and 2023, rising from 395,228 ha in 2019 to 693,998 ha in 2023. This growth is due to farmers’ increasing interest in organic farming practices, easy access to European funds and subsidies for organic farming, as well as the continuously growing demand for certified organic products, both on the domestic and international markets.
Underutilised potential
In Romania, the organic agri-food sector is in a developmental stage, characterized by a continuously growing production potential that remains underutilized in the domestic market. Favorable natural conditions, extensive agricultural land, and farmers’ growing interest in sustainable practices contribute to the expansion of organic farming. However, the development of this sector is limited by relatively low domestic demand, which fails to absorb the entire available production.
Insufficient domestic demand
An important factor influencing this low demand is the higher prices of organic products compared to conventional ones, as well as consumers’ insufficient awareness of their benefits. Although interest in a healthy lifestyle is growing, this is not yet fully reflected in consumer behavior, as many consumers are opting for more affordable products.
Imported products on supermarket shelves
The distribution of organic products is carried out mainly through retail channels, particularly through supermarket and hypermarket chains, which are constantly expanding their offerings. These include both products from established brands and those sold under private labels, thereby contributing to increased accessibility and visibility of organic products. However, a large portion of the products available on store shelves are imported.
Exporter of raw material, importer of processed food
A significant aspect of the Romanian market is the imbalance between exports and imports. Romania mainly exports organic raw materials, such as grains, seeds, or other unprocessed agricultural products, while it imports certified organic finished products, which have higher added value. This situation highlights the lack of adequate processing infrastructure at the national level, as well as the limited capacity to transform raw materials into competitive finished products.
Main organic produce
In 2024, the total area under organic agriculture was 780,000 ha. Organic pastures and hayfields cover almost 300,000 ha. Organic cereals are grown on 170,000 ha with an additional 100,000 ha dedicated to other arable crops (such as oilseeds). Vegetables are grown on less than 2000 ha while orchards and vineyards occupy 22,000 ha. Organic livestock farming comprises some 30,000 cattle (of which 16,000 dairy cows), almost 30,000 sheep, 6000 goats and 370,000 poultry.
Limited but growing number of certified producers
The sector’s underdevelopment is also due to the relatively small number of certified organic producers, as the certification process is costly and sometimes difficult for small farmers to access. Furthermore, the fragmentation of farms hinders the organization of production and efficient integration into distribution chains.
Analyzing the total number of certified organic operators over 2019-2023, their number increased from 9821 in 2019 to 14061 in 2023, representing a growth of approximately 43%.
Increasing importance of organic agriculture
Growth in areas and operators can be attributed to growing demand for organic products, driven by health concerns, subsidies, and support from the European Union through the Common Agricultural Policy, which made the conversion attractive, as well as improved profitability and access to markets, including exports. Thus, most farmers have switched to organic farming because it has become more demanded and economically advantageous.
Additional growth possible if limiting factors are removed
In conclusion, Romania has considerable potential in the field of organic farming, but its realization remains limited by factors such as lower domestic demand, underdeveloped infrastructure, and fragmented production. To ensure the sector’s sustainable development, measures are needed such as stimulating domestic consumption, investing in processing capacity, supporting producers in obtaining organic certification, and creating more efficient supply chains.