Romania's agriculture at historical levels in cereal production
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>>> Romania became the largest maize producer in Europe in 2018, ahead of France
By Jerom Bolt
Romania has this year's best agricultural result in history. Record production of wheat and maize places agricultural turnover close to 8 billion euros, KeysFin experts say in an analysis of business developments in the sector.
The data from the Ministry of Agriculture shows that this year's wheat production is more than 200,000 tonnes higher than last year, exceeding 10 million tonnes, while maize would be between 14.5 and 15 million tonnes, compared to just 11.8 million tons will be harvested in France. This means that Romania will take over the crown of the largest European corn producer, according to the estimates of the General Association of Maize Producers (AGPM).
According to the KeysFin analysts, spectacular performance in the agricultural sector is due to major investments in the sector.
"The significant investments have been made in optimizing production flows, from using efficient seeds to streamlining and upgrading crop maintenance and mechanized harvesting, including through satellite monitoring. In many ways, Romanian agriculture has taken huge steps to modernization, and the effects are seen in growing crops from year to year, "says KeysFin analysts.
In Romanian agriculture it currently operates approx. 12,727 companies specialized in plant cultivation, which generated over 64% of all agricultural businesses last year.
More than 3247 companies (29% of total turnover) are engaged in animal husbandry, and 1272 companies are active in the mixed agricultural activities sector, which provides 7.6% of the total agricultural business.
According to KeysFin data, agriculture businesses increased by 20.7% in 2017 compared to 2013 and by 6.8% compared to 2016, to 35 billion lei, and by 2018 it is estimated to exceed the level of 36 billion lei .
"The excellent production results for wheat and maize would make a significant contribution to this record, but unfortunately, the major problems in the livestock sector, where swine fever has significantly affected the affairs of producers and distributors, has been mild," experts say.
"The Romanian agriculture is in the process of consolidation, proof that many mergers and acquisitions have taken place in the market during the last 2-3 years. They are mainly foreign investors who have taken over large areas of land and farms, the logistics support that allowed the development of these record crops, despite drought problems, "they said.
The number of employees in agriculture increased by 6% compared to 2013 to 85,400, but decreased by 2% compared to 2016. Interestingly, in 2017, the average cost per employee grew much faster than labor productivity by 63, 4% versus 2013 and 18% versus 2016, to 3540 lei per employee. Labor productivity in this sector marked last year a 14% gain over 2013 and 9% more than in 2016.
"And in this sector, as in other areas of the economy, the acute labor force crisis is telling the word. In this context, more and more companies have built on integrated solutions, the process of agricultural technology being even more accentuated" , explains the analysts.
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