KeysFin: Best agricultural year in history for Romania, due to major investments

Romania has the best agricultural year in history, with record production of wheat and maize, which lead the agricultural turnover to almost EUR 8 billion, a KeysFin analysis released on Tuesday reads.

The figures from Agriculture Ministry read that the wheat production is by 200,00 tons higher than last year, of over 10 million tons, whereas the maize production will reach 14.5-15 million tons. For example France will have a maize crop estimated to 11.8 million tons. Romania thus becomes Europe’s largest maize producer.

The barley production is also much higher than last year.

KeysFin analysts say these are the results of major investments in the sector.

“Massive investments have been conducted in optimizing the production process, from using effective seeds to the modernization of crop maintenance and mechanized harvesting, including satellite monitoring. Romanian agriculture has made huge steps towards modernization, from many points of view, the results are the higher crops registered every year,” the KeysFin analysts say.

Some 12,727 specialized companies operate in plant cultivation, which generated last year 64% of the overall business in agriculture.

More than 3,247 companies deal with animal breeding (29% of the total turnover) and in the mixed agricultural sector there are 1,272 companies, providing 7.6% of the total business in agriculture.

Agriculture’s business level increased by 20.7% in 2017 against 2013, and by 6.8% against 2016, up to RON 35 billion. In 2018 it is estimated that the business turnover will exceed RON 36 billion.

The analysts also say the African swine fever has significantly affected the producers and distributors’ businesses.

In the first 7 months of 2018 some 1,450 companies were established, but almost 6,500 were closed down.

The analysis also reads that lots of mergers and acquisitions have taken place during the past 2-3 years. Large foreign investors have acquired large plots of land and farms, which has allowed the development in this sector to record crops.

The number of employees in agriculture has increased by 6% against 2013, up to 85,400, but has decreased by 2% against 2016.

Labour productivity in the sector increased by 14% last year against 2013 and by 9% against 2016.

KeysFin informs that the largest businesses in Romanian agriculture are made in Timis County (RON 2.85 billion), Calarasi County (RON 2.54bn), Constanta County (RON 1.93bn), Buzau and Satu Mare counties with RON 1.6bn each.

The cultivators rankings reveal that on the first place is AGRO-CHIRNOGI SA – businesses of RON 880,6 million in 2017, followed by PROMAT COMIMPEX SRL (RON 541.5 million), PLANTAGRO-COM SRL (RON 439.7 million), AGRICOST SA (RON 359.2 million) and WINE SOLUTIONS NETWORK SRL (RON 284.2 million).

Top 5 animal breeders includes: SMITHFIELD ROMANIA SRL – businesses of RON 920.1 million, followed by TRANSAVIA SA – RON 531.5 million, AGRISOL INTERNATIONAL SRL – RON 291.5 million, AVICOLA BUZĂU SA – RON 264.3 million) and AVICARVIL SRL – RON 159.3 million.


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