According to a study by KeysFin, the turnover of Romanian agribusinesses will reach 58.1 billion lei in 2021, an increase of more than 30% year-on-year and the biggest increase in the last 10 years, RIA Novosti reported on October 31. The top three agricultural companies in terms of turnover are the National Forestry Agency, agricultural input company Promat Comimpex and grain trading company Plantagro-Com.
The study said that the increase in turnover of agricultural companies in 2021 is mainly stimulated by the increase in international prices of cereals and raw materials, as well as the various agricultural subsidies of the government. The study estimates that although in July this year the European Commission expects a 12 percent reduction in annual grain production in 2022, inflationary pressures and government subsidies could largely offset the impact of the reduction, allowing agribusinesses in the country to still achieve a turnover of about 58 billion lei this year.
Currently, the country’s agriculture needs to prioritize infrastructure development and modernization, and should learn from Poland’s development strategy to invest heavily in agricultural processing and increase exports of high value-added products, in order to reverse its current position as a net importer of agricultural products and achieve a positive balance in international agricultural trade after several years of development.
Source: Economic and Commercial Section of the Embassy in Romania
Post time: Nov-14-2022