Direct foreign investments and European funds are the only chance for Romania's agricultural survival, according to a Romanian Commercial Banc (BCR) report. The lands' low price, the vast surfaced meant for agriculture and the quality of the soil could be the perfect ingredients for a successful business for foreign investors interested in Romania.
Romania ranks 30 in a top listing the countries active in the ecological agriculture sector. The main considered aspects are the reduced scale of chemical products in Romania's agriculture, the small farms, the very good soil quality and the relatively cheap work force. These could be assets in securing foreign interests that are willing to bring their experience and technology in a country that has the capacity to feed over 100 million people, BCR chief economist Lucian Anghel declared during the 2009 Agricultural report.
According to BCR, the only options for Romania's agriculture are foreign investments and European funds, due to the agricultural areas fragmentation, current low investments, the ageing population in the rural areas and the general poverty in the country side. The report claims that the first 50 big entrepreneurs are only using 4% of the entire agricultural surface of the country, namely 430,000 hectares. The tendencies for the increase in prices that stopped last year had a negative impact of this aspect.
But at the same time, the country doesn't have full functional inner commerce mechanisms and the local producers try to sell the crop on their own. That goes for about 70% of the total production, according to some estimates. The cereals output could drop by 25-30% in 2009 due to the decrease in wheat production.
Foreign companies saw profitable businesses in the last two years, despite Romania's difficult conditions from the agriculture sector. Regarding