World Grain - December 2008 - 20

COUNTRYFOCUS

Focus on
Romania
Nation sees huge grain production
increase from 7.2 million tonnes in
2007 to 17.5 million in 2008
by Chris Lyddon

Romania is one of Europe's biggest grain producers, and European Union (E.U.) membership means access to markets and
funds for development. With a good supply of high-quality farmland and a processing sector that, at least as far as the big firms
are concerned, has invested in modern machinery, the potential is
there for continued success.
"Romania is still a blessed country with its more than 12 million hectares of top-quality flatland," Viorel Marin, president of
the Romanian National Association of Flour Milling and Baking
Industries, told World Grain. "This potential combined with the
constant high Romanian appetite for bread, bread specialties and
pastry products can drive Romania to become quite a heaven for
the milling industry."
According to the International Grains Council (IGC), Romania's total grain production increased 143% in 2008, reaching
17.5 million tonnes, compared with 7.2 million in 2007. The total
wheat crop grew to 7.4 million tonnes, up from 2.9 million. Maize
rose to 8.3 million tonnes from 3.5 million.
SLOVAKIA
UKRAINE
The barley crop was 1.4 million tonnes in
2008, compared with 500,000 the year beHUNGARY
MOLDOVA
fore.
ROMANIA
The European grains industry body COA
CERAL puts Romania's production of soft
wheat in 2008 at 7.898 million tonnes,
from an area of 1.95 million hectares, an
YUGOSLAVIA
BULGAR
BULGARIA
average yield of 4.1 tonnes a hectare. For
2007, COCERAL estimated Romania's
wheat
wh
h t crop at 3 million tonnes from 1.5 million hectares, a two-tonne-per-hectare yield.
are
This year's increased crop has enabled Romania to
export. For example, the IGC reported a sale of 100,000
ex
tonnes of Romanian wheat to Iraq on Sept. 10 as well as
ton
sales to Pak
Pakistan.
Romania is also a big oilseeds producer. According to the European oil and protein meal industry organization FEDIOL, the country produced 376,000 tonnes of soybeans, 180,000 tonnes of rape20

Key Facts
Capital: Bucharest
Population: 22.2 million (July 2008 est.)
Religions: Eastern Orthodox (including all subdenominations) 86.8%, Protestant (various denominations
including Reformate and Pentecostal) 7.5%, Roman
Catholic 4.7%, other (mostly Muslim) and unspecified
0.9%, none 0.1% (2002 census).
Location: Southeastern Europe, bordering the Black Sea,
between Bulgaria and Ukraine.
Government: Republic; chief of state: President Traian
Basescu (since Dec. 20, 2004); Head of government: Prime
Minister Calin Popescu-Tariceanu (since Dec. 29, 2004).
Economy: Romania, which joined the European Union
on Jan. 1, 2007, began the transition from communism
in 1989 with a largely obsolete industrial base and a
pattern of output unsuited to the country's needs. The
country emerged in 2000 from a punishing three-year
recession thanks to strong demand in E.U. export markets.
Domestic consumption and investment have fueled strong
GDP growth in recent years but have led to large current
account imbalances. Romania's macroeconomic gains have
only recently started to spur creation of a middle class and
address Romania's widespread poverty. Corruption and
red tape continue to handicap its business environment.
Inflation rose in 2007 for the first time in eight years,
driven in part by the depreciation of the currency, rising
energy costs, a nationwide drought affecting food prices,
and a relaxation of fiscal discipline. Romania hopes to
adopt the euro by 2014.
GDP per capita : $11,100 (2007 est.); inflation: 4.8%
(2007 est.); unemployment 4.1% (2007 est.).
Currency: "New" leu (RON) was introduced in 2005;
"old" leu (ROL) was phased out in 2006; 2.98 RON equals
1 U.S. dollar (Nov. 17, 2008).
Exports: $40.32 billion f.o.b. (2007 est.): machinery
and equipment, textiles and footwear, metals and metal
products, machinery and equipment, minerals and fuels,
chemicals, agricultural products.
Imports: $64.54 billion f.o.b. (2007 est.): machinery
and equipment, fuels and minerals, chemicals, textile and
products, metals, agricultural products.
Major crops/agricultural products: Wheat, maize,
barley, sugar beets, sunflower seed, potatoes, grapes; eggs,
sheep.
Agriculture: 7.9% of GDP and 29.7% of the labor force.
Internet: Code .ro; 1.406 million (2007) hosts and 12
million (2007) users.
Source: CIA World Factbook

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