Romania: agriculture +60% growth forecasted

There is a 60% growth forecasted for the romanian agricultural market for the 2008, provided that there will be no natural disasters (floods, droughts or else) with negative effects on crops. This is what has been stated by Adrian Porumboiu, the President of the Racova Com Agro Pan Vaslui, one of the main Romanian farmers, which administers an area of more than 40,000 hectares of farmland. Although the bad performance of 2007 does not generate much optimism in the farmers, this year it is forecasted a recovery of the sector, after a crisis period, which has adversely affected production, encouraging a growth in food prices and the foreign trade deficit. The estimates of analysts include a growing profit margin of 10% and an increase of 325 euros (+20%) of the average wage in the agricultural sector, compared to the 2007. There remains, however, the trend to massive imports of cereals, pig meat, fruits and vegetables, that will cover a 50-60% of the food needs of the Romanian. In this regard, more than 70% of meat used, the 30-40% of milk and 80% of sugar marketed in Romania come from abroad. With regard to prices, is expected a 15% growth, mainly due to the devaluation of Leu, which determines an increase in the cost of imported products. To be noticed also an increase in rape planted areas, in connection with an imminent opening of new factories for the production of bio-diesel and biomass and a more general spread of these crops for the production of fuels. The 2008 will be a decisive year for accessing to structural funds of the European Union, whose operation has not been approved by the authorities in Brussels yet.