Farmers Set To Harvest EUR4.5B Worth Of Grains

03.11.2013 By Gabriel Razi

Romanian farmers will harvest between 18 and 19 million tons of grains in 2013, 50% more than last year, but nowhere near the 40 million-ton production potential of local agriculture.

In Romania, crops are weather-dependent, but forecasts say there are very good chances that farmers’ estimations will materialize.

“It seems like this year will be at least ‘good’ for agriculture. Grain production will probably be around 18-19 million tons. The good news is over the next few days we will pay the aids for farmers,” said Achim Irimescu, secretary of state in the Agriculture Ministry at a seminar organized by Ziarul Financiar in partnership with Bancpost, CEC Bank, Cargill and Agricover.

A total crop of 18-19 million tons of grains this year would mean a rise of at least 50% on last year, when yields were significantly undermined by the drought.

The value of agricultural production, which is directly dependent on the grain harvest, fell 20% to RON14.5 billion last year. A total harvest of around EUR19 million tons would bring around EUR4.5 billion into the economy, in money collected by farmers for their grain harvests, according to ZF calculations based on current prices.

Such a harvest would be a breath of fresh air for the economy, as Romania could not count on constructions, consumption or EU fund absorption to support its GDP growth. In the past two years, agriculture was both a driver of the economy and a dampening factor, considering that in 2011 it had a significant contribution to the 2.5% economic growth, while last year it kept the growth at a mere 0.3%.

(English version by Daniela Stoican)