ROMANIA. AGRICULTURE and FOOD INDUSTRY. Romania Trade and Invest

AGRICULTURE and FOOD INDUSTRY Romania Trade and Invest

This publication is based on the data and information released by public sources, as they had been available at the moment of its compilation, and it will be every year revised for editing updated versions. The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the Romania Trade and Invest (CRPCIS). Whilst every effort has been made to ensure the accuracy of the information contained in this publication, the Romania Trade and Invest (CRPCIS) cannot accept any responsibility for the data changes that may occur after its compilation or for the outcomes of using this publication. Any piece of information or data does not imply the endorsement of the Romania Trade and Invest (CRPCIS). Romania Trade and Invest Centrul Român pentru Promovare Comerțului şi Investițiilor Străine (CRPCIS) Department for Market Analysis Trade Publications Editor: Marie Jeanne Dumitrescu Coordinator: Alina Beldescu Romania Trade and Invest (CRPCIS), 2012 Reproduction in part is authorised provided the source is acknowledged.

SUMMARY Agriculture Overview 1 Agri food International Trade 2 Appendix Table 1 Agri food export product structure, 2007 2011 5 Table 2 Agri food export product structure, 2007 2011 6 Table 3 Top 40 agri food trade partners of Romania, 2011 7 Romania Trade and Invest

Agriculture Overview Romania enjoys a significant potential, notably due to favorable pedo climatic conditions, reflected in crop yields and production which can fully satisfy domestic consumption needs in either quantity or quality and variety of food products, being able to assure an important export supply as well. Agriculture represents an important sector of the national economy, with a share of about 7% of GDP (compare to the average share of 1.7% registered in the European Union EU) and a workforce of 29% of the population (one of the highest rate in Europe). A share of 39.2% of Romaniaʹs territory is arable land, 28% forests, 21% pastures, hayfields and orchards and 2.5% vineyards. Grains, oil seeds, sugar beet, vegetables, tree fruits, berries and grapes for wine are the main crops, and pigs, sheep and cattle the main livestock. Forestry and fisheries are being developed under longterm national programs. Per capita arable land in Romania is 0.41 ha, compared to an average of 0.212 ha per capita in EU. Baragan region (South Eastern part of the country) is characterized by large wheat farms. Dairy products, pork, poultry and apple production are concentrated in the Western region. Beef production is located in Central Romania, while the production of fruits, vegetables and wine ranges from Central to Southern Romania. Romania is a large producer of a great variety of agricultural products and is currently expanding its forestry and fishery industries. Among top 10 EU 27 Member States as regarding agricultural production, Romania ranks as follows: honey rank 3 rd oilseeds rank 5 th vegetables and melons rank 6 th cereals rank 7 th livestock and poultry rank 8 th meat and wine rank 10 th. Agricultural land by use Arable land by use Pastures and hays 33.8% Ara ble land 62.5% Cereals and oilseeds 80.0% 1.3% Vine ya rds and Potatoe s 3.1% Vegetables 3.3% Green fe e ds crops 0.5% orchards 10.9% 2.4% Source: Ministry of Agriculture, Forestry and Rural Development, Romania Over last decade, organic agricultural land in Romania expanded to 300,000 ha, representing 2.25% of total agricultural land. Currently, Romania is an attractive organic market, yet more as a raw material supplier, Romania Trade and Invest 1

holding one of the most fertile and organic land in Europe. Fertilizers use is less than 70 kg/ha compared to an average of 200 500 kg/ha in Europe. Cereals, vegetables, oilseeds, honey and forest fruits are the main organic products. There are more then 10,000 organic agricultural products processors in Romania. Organic farming also expanded in the livestock sector, mainly sheep and goats, number of organic livestock processors doubling to over 70 within last years. Exports of organic products exceed 100 million Euro placing Romania on top 20 world exporters of organic products. Main export markets for organic products originating in Romania are Austria, Germany, France, Italy, Denmark and Switzerland. Cargill, Smithfield Food, Bunge, Glencore, Lactalis, Orkla Foods, Danone and Meggle are some of the main foreign investors in Romanian agri food sector. Agri food International Trade In 2011, Romania s trade with agri food products accounted for 8.4% of total trade. Although agri food trade balance constantly registered a deficit, it shrunk significantly by over 50% in 2010 compared to 2006, mainly due to sustainable positive trend of raw agricultural products trade balance, which expanded at fast pace during the last 4 years. Yet, agricultural and food products balance was negative throughout the entire period with a peak of EUR 2.2 billion in 2007, but trade deficit was decreasing year on year to EUR 0.45 billion in 2011. EUR billion Romania Agri food trade, 2006 2011 (Chapte rs 1 24 of Combine d Nome nclature ) 5 3 3.327 4.347 3.823 3.126 3.927 3.640 4.090 2.416 2.165 2.242 1 0.868 1.117 0.801 0.450 1 1.547 1.581 2.210 2.182 3 2006 2007 2008 2009 2010 2011* Export Import Trade balance Note: * 2011(January November) Sources: ITC/UNCTAD/WTO Trademap, National Institute of Statistics of Romania and Romania Trade and Invest Share of agri food products of total Romanian exports increased from less than 5% in 2006 to almost 9% in 2011. Exports of agri food products increased significantly during the last 5 years, reaching over EUR 3.6 billion in end November 2011 compared to less than EUR 900 million end year 2006. Romania Trade and Invest 2

Romania s export offer of agri food products consists mainly of raw products (less than 43% is covered by processed products). Cereals and oilseeds, tobacco and products thereof, live animals, fats and oils are the main agri food exported products. Almost 50% of cereals exports are represented by maize and wheat, while rapeseed and sunflower seeds account for more than 95% of oilseeds exports. Bovines, sheep and goats, account for 98% of total live animals exports. As regarding the processed products, Romania s export offer is more diversified, ranging from tobacco products, fats and oils and meat to beverages, sugar and dairy. Sunflower oil, margarine and rapeseed oil account for 95% of fats and oils exports, poultry, sheep and goat meat account for 97% of meat exports, refined sugar accounts for 88% of sugar and confectionery exports, while over 80% of beverages exports is represented by non alcoholic drinks, alcohol and wines. Cereals 45.8% Structure of raw agricultural products exports 2011 Oilseeds 36.9% Meat and products 13.0% Structure of processed agricultural products exports 2011 Sugar and confectionery 8.3% Beverages 5.4% Dairy 5.0% 15.4% 1.4% Fruits 3.0% Vegetables 2.5% Live animals 10.5% Fats and oils 13.9% Tobacco and products 27.4% Animal feed and fodder 5.7% Food products 5.9% Note: 2011 (January November) Sources: ITC/UNCTAD/WTO Trademap, National Institute for Statistics, Romania Trade and Invest Imports of agri food products rose by about 60% during 2006 2010, with a peak of over EUR 4.3 billion in 2008. Since then, imports of agri food products started to decrease slowly, especially imports of processed products Share of agri food imports of total Romanian imports showed a similar trend as agri food exports, increasing from 5.9% in 2006 to 8.1% in 2011. Romania s import supply of agri food products is much diversified and consists mainly in processed products (less than 32% is represented by raw products). Meat, sugar and confectionery, fruits, vegetables, animal feed and fodder, cereals, oilseeds and edible preparations are the main agri food imported products. Almost 85% of meat imports are represented by swine and poultry meat, while raw and refined sugar accounts for 81% of sugar and confectionery imports. Soybean oil cakes and animal feed preparations account for 95% of total imports of residues and waste of food industry. As regarding the raw products, Romania s import supply is less diversified, ranging from oilseeds and cereals to fruits and vegetables, coffee, tea, spices and other products. Sunflower seeds and rapeseed account for 78% of oilseed imports, wheat and maize account for 84% of cereals imports, citrus, bananas, apples and pears accounts for almost 70% of fruits imports, while 50% of vegetable imports is represented by tomatoes, frozen vegetables and green peppers. Romania Trade and Invest 3

Structure of raw agricultural imports Structure of processed agricultural products imports 2011 2011 Fish, crustaceans, molluscs 6.9% 7.0% Live animals 7.2% Oilseeds 19.5% Food products 9.0% Dairy 8.3% Oils and fats 8.2% 28.2% Coffee, te a, spices 11.4% Ve ge table s 11.0% Fruits 12.8% Cereals 24.2% Animal feed and fodder 9.3% Sugar and confectionery 12.6% Me at and products 17.2% Tobacco and products 7.2% Note: 2011 (January November) Source: ITC/UNCTAD/WTO Trademap, National Institute for Statistics, Romania Trade and Invest Main export markets of Romania for agri food products are as follows: Italy, Hungary, Bulgaria, Netherlands and Germany. Italy imported from Romania cigarettes, cereals, mushrooms, live animals and meat products, while Bulgaria and Hungary mainly imported refined sugar, poultry meat, sunflower oil and margarine. Exports to Netherlands are covered by oilseeds, cereals, ethyl alcohol and meat products, while Romanian agrifood exports to Germany consist of diary and meat products, food preparations, tobacco and products thereof, fruits and vegetables. Import suppliers of Romania for agri food products are mainly from: Hungary, Germany, Bulgaria, Brazil and Netherlands. Hungary exported to Romania cereals, swine and turkey meat, sunflower oil, animal feed preparations and dairy products, while Bulgaria and Germany mainly exported swine and poultry meat, cheese, cigarettes, diet food, bakery products and infant food preparations. Imports from Bulgaria were covered by oilseeds, cereals, refined sugar, poultry meat, chocolate and cheese, while Romanian agri food imports from Brazil were of meat, coffee, raw and refined sugar, animal feed preparations and tobacco. Romanian Italy Hungary Bulgaria Netherlands Germany Spain Turkey Greece France Belgium Hungary Germany Bulgaria Brazil Netherlands Poland Italy France Austria Spain Romania - Main export markets for agri-food, 2011 (% share of export) 2.4% 3.4% 3.1% 3.2% 4.2% 4.1% 6.1% 5.1% 4.9% 6.6% 6.4% 7.7% 7.6% 7.2% 11.1% 9.5% 12.1% 10.7% Romania - Main import suppliers of agri-food, 2011 (% share of import) 16.1% Note: 2011 (January November) Sources: ITC/UNCTAD/WTO Trademap, National Institute of Statistics, Romania Trade and Invest 13.6% imports from Netherlands consisted of swine and poultry meat, cut flowers and plants, food preparations, fresh vegetables and fruits. Romania Trade and Invest 4

Table 1 Agri food export product structure, 2007 2011 Code and description (Chapters of Combined Nomenclature) 2007 2008 2009 2010 2011* value share value share value share value share value share EUR mill. % EUR mill. % EUR mill. % EUR mill. % EUR mill. % Romania export total, of which: 29,401.8 3.8 3,3724.6 6.4 29,084.2 7.7 37,367.8 8.4 41,747.9 8.7 Romania export agri food products total, of which: 1,116.7 100.0 2,165.2 100.0 2,242.4 100.0 3,126.1 100.0 3,639.8 100.0 01 Live animals 180.5 16.2 177.0 8.2 173.3 7.7 195.6 6.3 218.6 6.0 02 Meat and edible meat offal 26.9 2.4 41.6 1.9 74.4 3.3 129.3 4.1 202.4 5.6 03 Fish, crustaceans, molluscs, aquatic invertebrates nes 3.0 0.3 4.8 0.2 7.4 0.3 8.5 0.3 13.2 0.4 04 Dairy products, eggs, honey, edible animal product nes 33.1 3.0 44.6 2.1 59.6 2.7 79.9 2.6 78.4 2.2 05 Products of animal origin, nes 7.8 0.7 10.0 0.5 11.0 0.5 20.3 0.6 27.4 0.8 06 Live trees, plants, bulbs, roots, cut flowers etc 1.1 0.1 1.9 0.1 1.4 0.1 2.7 0.1 2.9 0.1 07 Edible vegetables and certain roots and tubers 42.8 3.8 41.7 1.9 43.7 1.9 66.6 2.1 51.1 1.4 08 Edible fruit, nuts, peel of citrus fruit, melons 38.5 3.5 33.5 1.5 38.8 1.7 61.9 2.0 62.2 1.7 09 Coffee. tea. mate and spices 4.2 0.4 6.5 0.3 9.8 0.4 12.1 0.4 12.0 0.3 10 Cereals 150.7 13.5 637.6 29.4 630.7 28.1 892.6 28.6 950.5 26.1 11 Milling products, malt, starches, inulin, wheat gluten 4.9 0.4 6.6 0.3 8.1 0.4 19.4 0.6 22.4 0.6 12 Oil seed, oleagic fruits, grain, seed, fruit, etc. nes 193.2 17.3 468.7 21.6 390.4 17.4 582.1 18.6 767.0 21.1 13 Lac, gums, resins, vegetable saps and extracts nes 0.1 0.0 0.3 0.0 0.3 0.0 0.2 0.0 0.5 0.0 14 Vegetable plaiting materials, vegetable products nes 2.1 0.2 1.5 0.1 1.6 0.1 1.3 0.0 2.3 0.1 15 Animal, vegetable fats and oils, cleavage products, etc 67.7 6.1 105.5 4.9 88.0 3.9 164.2 5.3 216.8 6.0 16 Meat, fish and seafood food preparations nes 27.7 2.5 40.1 1.9 37.2 1.7 53.7 1.7 62.3 1.7 17 Sugars and sugar confectionery 10.8 1.0 22.4 1.0 39.9 1.8 104.1 3.3 129.7 3.6 18 Cocoa and cocoa preparations 8.6 0.8 17.8 0.8 21.1 0.9 27.8 0.9 30.2 0.8 19 Cereal, flour, starch, milk preparations and products 34.6 3.1 46.3 2.1 45.4 2.0 52.9 1.7 63.6 1.7 20 Vegetable, fruit, nut, etc food preparations 27.1 2.4 19.9 0.9 21.9 1.0 33.0 1.1 33.5 0.9 21 Miscellaneous edible preparations 23.4 2.1 40.6 1.9 53.0 2.4 71.8 2.3 91.8 2.5 22 Beverages, spirits and vinegar 55.3 4.9 69.7 3.2 57.2 2.5 88.9 2.8 84.0 2.3 23 Residues, wastes of food industry, animal fodder 33.5 3.0 61.2 2.8 59.9 2.7 71.8 2.3 89.3 2.5 24 Tobacco and manufactured tobacco substitutes 139.3 12.5 265.4 12.3 368.1 16.4 385.6 12.3 428.0 11.8 Note: * 2011 (January November) Sources: National Institute for Statistics, Romania Trade and Invest data processing. Romania Trade and Invest 5

Table 2 Agri food import product structure, 2007 2011 Code and description (Chapters of Combined Nomenclature) 2007 2008 2009 2010 2011* value share value share value share value share value share EUR mill. % EUR mill. % EUR mill. % EUR mill. % EUR mill. % Romania import total, of which: 50,992.6 6.5 57,240.3 7.6 38,953.2 9.8 46,901.7 8.4 50,449.4 8.1 Romania import agri food products total, of which: 3,327.0 100.0 4,347.0 100.0 3,823.3 100.0 3,926.7 100.0 4,089.7 100.0 01 Live animals 46.3 1.4 102.4 2.4 116.9 3.1 95.7 2.4 93.1 2.3 02 Meat and edible meat offal 553.9 16.6 729.9 16.8 642.0 16.8 515.2 13.1 419.9 10.3 03 Fish, crustaceans, molluscs, aquatic invertebrates nes 77.3 2.3 102.3 2.4 101.9 2.7 104.8 2.7 89.4 2.2 04 Dairy products, eggs, honey, edible animal product nes 152.1 4.6 212.0 4.9 216.5 5.7 225.4 5.7 231.9 5.7 05 Products of animal origin, nes 39.3 1.2 44.6 1.0 38.3 1.0 43.4 1.1 46.0 1.1 06 Live trees, plants, bulbs, roots, cut flowers etc 52.1 1.6 82.2 1.9 78.4 2.0 83.9 2.1 88.8 2.2 07 Edible vegetables and certain roots and tubers 144.2 4.3 155.6 3.6 122.0 3.2 149.7 3.8 141.6 3.5 08 Edible fruit, nuts, peel of citrus fruit. melons 245.1 7.4 245.3 5.6 175.7 4.6 178.7 4.5 164.8 4.0 09 Coffee, tea, mate and spices 100.2 3.0 116.7 2.7 114.2 3.0 129.4 3.3 147.5 3.6 10 Cereals 267.3 8.0 308.2 7.1 249.8 6.5 248.2 6.3 312.0 7.6 11 Milling products, malt, starches, inulin, wheat gluten 95.4 2.9 126.2 2.9 89.9 2.4 74.0 1.9 104.1 2.5 12 Oil seed, oleagic fruits, grain, seed, fruit, etc. nes 113.2 3.4 202.0 4.6 157.8 4.1 260.4 6.6 252.0 6.2 13 Lac, gums, resins, vegetable saps and extracts nes 11.6 0.3 22.1 0.5 13.9 0.4 14.9 0.4 16.1 0.4 14 Vegetable plaiting materials. vegetable products nes 1.1 0.0 1.1 0.0 1.3 0.0 2.0 0.1 1.7 0.0 15 Animal, vegetable fats and oils, cleavage products. etc 143.7 4.3 227.1 5.2 160.4 4.2 217.2 5.5 228.5 5.6 16 Meat, fish and seafood food preparations nes 52.1 1.6 69.1 1.6 59.4 1.6 61.4 1.6 61.6 1.5 17 Sugars and sugar confectionery 160.5 4.8 237.6 5.5 241.6 6.3 269.7 6.9 351.4 8.6 18 Cocoa and cocoa preparations 82.2 2.5 108.7 2.5 93.7 2.4 122.0 3.1 125.3 3.1 19 Cereal, flour, starch, milk preparations and products 135.7 4.1 185.6 4.3 163.6 4.3 170.6 4.3 181.7 4.4 20 Vegetable, fruit, nut, etc food preparations 158.7 4.8 182.7 4.2 144.4 3.8 132.0 3.4 129.1 3.2 21 Miscellaneous edible preparations 224.5 6.7 270.5 6.2 246.3 6.4 251.6 6.4 252.0 6.2 22 Beverages, spirits and vinegar 154.8 4.7 209.0 4.8 139.4 3.6 143.8 3.7 190.3 4.7 23 Residues, wastes of food industry. animal fodder 159.1 4.8 229.5 5.3 266.4 7.0 268.8 6.8 259.2 6.3 24 Tobacco and manufactured tobacco substitutes 156.5 4.7 176.4 4.1 189.5 5.0 164.1 4.2 201.8 4.9 Note: * 2011 (January November) Sources: National Institute for Statistics. Romania Trade and Invest data processing. Romania Trade and Invest 6

Top 40 agri food trade partners of Romania, 2011 Table 3 Top 2011* Export market Export Import Top value share Supplier value share 2011* EUR mill. % EUR mill. % Export total, of which to: 3,639.8 100.0 Import total, of which from: 4,089.7 100.0 1. Italy 495.9 13.6 1. Hungary 660.1 16.1 2. Hungary 388.9 10.7 2. Germany 494.5 12.1 3. Bulgaria 345.0 9.5 3. Bulgaria 454.6 11.1 4. Netherlands 277.8 7.6 4. Brazil 314.6 7.7 5. Germany 261.3 7.2 5. Netherlands 271.0 6.6 6. Spain 186.8 5.1 6. Poland 263.4 6.4 7. Turkey 177.4 4.9 7. Italy 249.1 6.1 8. Greece 152.6 4.2 8. France 140.7 3.4 9. France 148.1 4.1 9. Austria 124.9 3.1 10. Belgium 117.3 3.2 10. Spain 98.4 2.4 11. Saudi Arabia 101.7 2.8 11. Czech Rep. 97.6 2.4 12. Egypt 82.8 2.3 12. Turkey 93.2 2.3 13. Syria 74.4 2.0 13. Greece 92.6 2.3 14. Jordan 71.4 2.0 14. Belgium 88.8 2.2 15. Slovakia 64.8 1.8 15. Slovakia 51.9 1.3 16. Pakistan 61.5 1.7 16. USA 50.1 1.2 17. Austria 43.5 1.2 17. Moldova 46.9 1.1 18. Croatia 40.9 1.1 18. Denmark 43.6 1.1 19. Great Britain 38.4 1.1 19. Great Britain 43.5 1.1 20. Ukraine 37.0 1.0 20. China 43.4 1.1 21. Poland 36.4 1.0 21. Serbia 39.9 1.0 22. South Korea 33.1 0.9 22. Argentina 34.4 0.8 23. Cyprus 28.7 0.8 23. Vietnam 21.9 0.5 24. Israel 27.1 0.7 24. India 19.4 0.5 25. Moldova 26.9 0.7 25. Sweden 18.4 0.5 26. Bosnia Herzegovina 24.5 0.7 26. Portugal 14.1 0.3 27. Czech Rep. 24.0 0.7 27. Malaysia 13.9 0.3 28. Russia 23.4 0.6 28. Cyprus 11.7 0.3 29. Japan 19.7 0.5 29. Thailand 10.8 0.3 30. Portugal 19.2 0.5 30. Zimbabwe 9.6 0.2 31. Algeria 17.3 0.5 31. Ecuador 8.1 0.2 32. UAE 16.3 0.4 32. Ireland 7.7 0.2 33. Lebanon 15.8 0.4 33. Russia 7.7 0.2 34. Denmark 13.9 0.4 34. Israel 7.6 0.2 35. Libya 11.8 0.3 35. Paraguay 7.6 0.2 36. Morocco 11.4 0.3 36. Switzerland 7.4 0.2 37. Switzerland 10.6 0.3 37. Indonesia 7.3 0.2 38. Serbia 9.8 0.3 38. Malawi 7.1 0.2 39. South Africa 8.8 0.2 39. Pakistan 6.8 0.2 40. Uzbekistan 8.1 0.2 40. Columbia 6.3 0.2 Notă: * 2011 (ianuarie noiembrie) Sursa: Institutul Național de Statistică, Centrul Român pentru Promovare Comerțului şi Investițiilor Străine prelucrare date. Romania Trade and Invest 7

Romania Trade and Invest Centrul Român pentru Promovarea Comerțului şi Investițiilor Străine (CRPCIS) 17 Apolodor Street, Bucharest 5, Romania Phone: +40 21 318 50 50 Fax: +40 21 311 14 91 office@romtradeinvest.ro www.romtradeinvest.ro