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The Prospects of the Romanian Farming Sector
(2013-05-20)
Last updated: 2013-05-21 16:34 EET
Dacian Ciolos The Romanian agricultural sector has often found itself in a critical situation in recent years as a result of drought and flooding, as well as of the incompetence of the relevant authorities and the lack of financial resources for development and modernization. Given these challenges, the farmers and the authorities must work together to find adequate solutions. As to whether agriculture can become an engine for Romania’s development, the European Commissioner for Agriculture and Rural Development Dacian Ciolos says the country needs a long-term strategy including concrete actions that can be translated into a governing platform.


Ciolos, who was on a visit to Romania for a few days, also says that one solution to create a competitive agricultural sector is for small producers to form associations leading to larger farming areas and animal farms. He says Romania can become an important player on the European cereal market if it uses its agricultural output not only to generate income, but also to consolidate its position in the region.

Ciolos believes that in a possible scenario Bucharest may set the prices on the cereal market in southern Europe: “Romania may have a say in establishing the price of cereals in this area. We all know it’s one thing to set the prices depending on certain factors that have to do with your potential and production capacity and an entirely different thing to work with prices imposed from outside. The advantage right now is that prices for cereals are high on the foreign market anyway, but Romania can also develop its animal breeding sector based on its cereal output and in this case it’s important to be able to dictate prices yourself.”


On the other hand, the creation of the land register, the modernisation of agriculture and the re-installation of the irrigation system are only some of the problems facing Romanian farmers. The modernisation of agriculture requires sectoral programmes and funds. While Romania is entitled to a significant amount of European funds, farmers say they are unable to access them because of excessive bureaucracy.


According to the white paper of the Foreign Investors Council, Romania ranks fifth in the European Union in terms of farmland but only accounts for 3% of the Union’s agricultural production. The paper estimates that Romania may become the third most important country in the European Union after France and Germany if it increases its productivity levels to reach the European average.
 
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