Investing in Romania

About Agricultural Sector in Romania:

The agricultural land in ROMANIA means around  14.7 milions agricultural hectares of which approx. 9.38 millions ha arable lands.

The agricultural Romania means farms of tens of thousands of hectares in a single geographical location and agribusiness infrastructure such as:

  • system of irrigation in place in the South of Romania
  • electrical power
  • network of national and county roads
  • Danube with its fluvial traffic
  • the largest Black Sea Port at Constanta
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Ports in the South and East of Romania where small and large barges are loaded. In Braila and Galati Ports vessels of to 4 to 6,000 to loaded

large platform of input suppliers

good workforce,diversified ag market ,agribusiness potential etc

About Romania Agriculture:

Romania is suitable for a wide variety of farming systems, and with the quality of the soils, particularly the Chernozem (black earth) soil found on the Walachian Plain, has the potential to be a significant producer of conventional cereals and field-scale vegetables with irrigation. Romania is also a producer of dairy products, extensive livestock farming in the Carpathian Mountains, wine production on the foothills of the Carpathian mountains, and fruits and vegetable production on the Danube.

Romania exports produce mainly to Western Europe, but also increasingly to the improving markets of the East. The agricultural industry is estimated to have contributed 12.4% to GDP (est. 2009). Romania has a significant resource of farmland with 14.7 million hectares of agricultural land of which 9.38 million hectares is arable. Only 7 million hectares of arable land cropped in 2010/11, meaning that over 2 million hectares of arable land is not currently in production. This provides huge opportunities, over time, to farm on a large scale.

Farmland prices currently average €3,000 per hectare for compacted land, and €2,500 per hectare for uncompacted land, although this varies depending on location and soil quality. Consolidation of land increases its capital value, in addition to anticipated land price convergence with Western Europe over time. There is also a relatively low cost of land occupation, with rents currently averaging €100 per hectare. Romania also benefits from access to a skilled and low-cost labour force. The workforce population currently employed in the agricultural sector is estimated at 26%.

The Romanian agricultural industry is developing quality certification schemes in line with much of Western Europe, and now benefits from the availability of grants and EU funding and support mechanisms both for agricultural infrastructure improvement, and grant aid under Single Farm Payment. This is likely to reach parity with the more established Western European EU member states after the review in 2015. The uptake of EU accession grants for infrastructure improvement has thus far been poor, and is available until 2017 for Romanian businesses. There is huge scope at a local level for improvement in agricultural infrastructure, including upgrading the irrigation network, building grain stores and silos, and improving rural road networks.