This is a best prospect industry sector for this country. Includes a market overview and trade data.
U.S. manufacturers and exporters of agricultural equipment have good prospects in Romania, in both the short and long term. However, there are several structural issues that affect demand for this equipment.
While Romania has an abundance of rich soil, the predominance of subsistence farming means that the country has a minimal amount of arable land per holding. Some small commercial farms are realizing that they can increase profitability by voluntarily forming associations to aggregate production and marketing. Relatively few large farms coexist with many small ones, which influence the competitiveness of Romanian agriculture.
U.S. manufacturers of agricultural equipment will find strong demand in the Romanian market, but a limited, yet growing, number of buyers. Farms with more than 100 hectares, or 250 acres, make up a very small proportion of Romania’s farms. However, commercial farms are investing to increase productivity. They have also become more adept at using financing from EU programs and the U.S. Export-Import Bank’s financing tools.
Discounted land prices, good-quality soil, low labor costs, and the potential for large productivity gains are attractive opportunities for foreign investors. Romania’s principal crops - corn, wheat, and sunflower - account for about 15 million acres of farmland. These offer opportunities for silos, agricultural machinery, irrigation equipment, greenhouses, and agricultural inputs such as fertilizers and feed supplements.
Irrigation Technology & Equipment
In the Communist period, Romania had a large national network of irrigation canals. However, this infrastructure has long since fallen victim to neglect, pilferage, and deterioration. Only a small portion of the irrigation network is in use. Currently, of the 9 million hectares (22 million acres) of arable land in Romania, less than 10% is irrigated.
The Ministry of Agriculture in Romania has recently launched a program to rehabilitate the irrigation canal network. Upcoming tenders present a clear opportunity for U.S. suppliers of irrigation canal building technologies, pumping stations, and irrigation systems related to the reconstruction of irrigation canals. Romania’s irrigation sector is implementing a program – approved with a budget of $1.12 billion - to build primary irrigation canal infrastructure throughout Romania from 2018-2020.
The EU has provided millions of euros in grants to rural businesses, including farms, for investment in agricultural machinery and equipment, manufacturing facilities, and other agricultural purposes. Between 2014 and 2020, a substantial percentage of EU structural funds (about $24 billion) are destined for agriculture within the European Agricultural Fund for Rural Development. Farmers access this money by submitting eligible projects to the Ministry of Agriculture and Rural Development. This is also a growing opportunity for U.S. suppliers of farming machinery to export their equipment to Romania.
October 28th – November 1st, 2020: INDAGRA - International Trade Fair of Equipment and Products in Agriculture, Horticulture, Viticulture and Animal Husbandry, 25th Edition, Romexpo Exhibition Center, Bucharest, Romania, Indagra
June 2021: Expo AgriPlanta – RomAgroTec: Open-Air Exhibition, Trial Fields & Machinery Demonstration, 8th Edition, Fundulea, Calarasi County, Romania, AgriPlanta
Name: Gabriel Popescu