World Grain - December 2008 - 24

COUNTRYFOCUS

five or six times annual consumption.
"Competition is really tough, and many
mills are currently using 25% to 60% of
their installed capacity," said Marin. "The
main solutions that are currently taken
into account are increasing the sales into
the E.U. common market and exporting
to (non-E.U.) countries."
One factor which will force rationalization on the industry is the E.U.'s insistence on the implementation of Good
Manufacturing Practice and Hazard
Analysis and Critical Control Point systems, something which is proving technically and financially difficult for many
of the smaller units.
Marin believes Romania has the potential to feed 120 million people, far
more than its population, but the lack of
development in Romanian agriculture
is holding it back. "Wheat production
is far below what can be a 'normal' one,
both in quantity and quality terms," he

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said. "This leads to an important lack
of four-quality consistency and (makes
it necessary) to import blending wheat.
Hopefully, this problem will be solved
and be leverage to efficient flour production and increased exports."
A further challenge facing the industry is getting the right staff in place. "Attention has to be paid to the development
of the professional and management
training and education system as there
are fewer and fewer specialists available
locally," Marin said.
The Romanian grains industry does
have particular strengths. "Local demand
remains pretty high as Romania is one
of the countries with the largest bread
consumption per capita in the world," he
said. "All large flour mills have the top
modern milling technologies."
Five-year (2008-2013) E.U. and national development funds (including
25% to 50% granting facilities) are

available for the milling industry.
Marin also noted that ties between the
increasingly efficient farm sector and the
processing industry are getting stronger.
Romania has introduced rules making it compulsory to use biodiesel in
fuel blends. According to a U.S. Department of Agriculture attaché report
published in May, this mandate was
introduced for the first time in July
2007, when the fuel retailers had to use
at least 2% of biodiesel in blends. The
percentage increased to 3% in January
2008 and is scheduled to rise to 4% in
July 2009. Starting in July 2009, a minimum 4% of ethanol based on volume
WG
should be blended with gasoline.
Chris Lyddon is World Grain's European editor.
He may be contacted at:
chris.lyddon@ntlworld.com.
We want to hear from you - Send comments and
inquiries to worldgrain@sosland.com. For reprints of
WG articles, e-mail reprints@sosland.com.

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December 2008 / World Grain / www.World-Grain.com

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World Grain - December 2008

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